Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ambarella's annualized net income for the quarter that ended in Apr. 2026 was €-61.9 Mil. Ambarella's average shareholder tangible equity for the quarter that ended in Apr. 2026 was €203.1 Mil. Therefore, Ambarella's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was -30.46%.
The historical rank and industry rank for Ambarella's Return-on-Tangible-Equity or its related term are showing as below:
MIL:1AMBA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -76.13 Med: -12.88 Max: 15.57
Current: -29.5
During the past 13 years, Ambarella's highest Return-on-Tangible-Equity was 15.57%. The lowest was -76.13%. And the median was -12.88%.
MIL:1AMBA's Return-on-Tangible-Equity is ranked worse than 89.75% of 985
companies
in the Semiconductors industry
Industry Median: 5.19
vs MIL:1AMBA: -29.50
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ambarella Return-on-Tangible-Equity Related Terms
Ambarella Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ambarella's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MIL:1AMBA vs AEHR, COHU, ICHR: Return-on-Tangible-Equity Comparison
For the Semiconductor Equipment & Materials subindustry, Ambarella's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ambarella Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Ambarella's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ambarella's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -30.46% mean?
Ambarella (MIL:1AMBA) has a Return-on-Tangible-Equity of -30.46% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ambarella and its competitors. According to the industry distribution chart, Ambarella ranks #884 out of 985 companies in the Semiconductors industry, placing it in the top 89.7%.
Is Ambarella's Return-on-Tangible-Equity too high?
Ambarella's current Return-on-Tangible-Equity is -30.46%. Based on the distribution chart, Ambarella ranks #884 out of 985 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Ambarella has a GF Score™ of 48/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ambarella's Return-on-Tangible-Equity compare to AEHR and COHU?
According to the Semiconductors industry distribution chart, Ambarella ranks #884 out of 985 companies for Return-on-Tangible-Equity. This places Ambarella in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.19. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.19, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ambarella and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambarella's current Return-on-Tangible-Equity is -30.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambarella stock overvalued right now?
Based on GuruFocus' analysis, Ambarella (MIL:1AMBA) is currently considered Fairly Valued. The stock's GF Value™ is €78.03, compared to a current price of €72.76 — trading 6.8% below its estimated fair value. The current Return-on-Tangible-Equity is -30.46%. Ambarella's overall GF Score™ is 48/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ambarella (MIL:1AMBA), the current Return-on-Tangible-Equity is -30.46% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ambarella (MIL:1AMBA) Overvalued in 2026?
Based on GuruFocus' analysis, Ambarella stock appears to be undervalued.
The current stock price of €72.76 is trading 6.8% below its estimated GF Value™ of €78.03.
GuruFocus considers Ambarella to be Fairly Valued.
Key valuation signals for MIL:1AMBA:
Return-on-Tangible-Equity: -30.46%
GF Value™: €78.03 vs. price of €72.76 (6.8% below fair value)
No single metric tells the full story. See the MIL:1AMBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambarella Inc is a developer of low-power system-on-a-chip, or SoC, semiconductors and software for edge and physical artificial intelligence (AI) applications and intelligent automation. Its products are used in a wide variety of human viewing, computer vision for edge and physical AI applications, including a variety of video security cameras, automotive camera systems, fixed robots, autonomous mobile robots (AMRs), industrial applications, intelligent transportation systems, and consumer devices, such as action, drone and 360 degree cameras. The company operates as a single operating and reportable segment and derives substantially all of its revenue from development and sales of low-power AI-based processing and video and image processing SoC solutions.
48GF Score
Get the complete analysis for MIL:1AMBA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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