Ambarella, Inc.

DB:A8B Stock Report

Market Cap: €2.4b

Ambarella Valuation

Is A8B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of A8B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Fair Value: A8B (€54.78) is trading below our estimate of fair value (€59.26)

Significantly Below Fair Value: A8B is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for A8B?

Key metric: As A8B is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for A8B. This is calculated by dividing A8B's market cap by their current revenue.
What is A8B's PS Ratio?
PS Ratio7.4x
SalesUS$373.85m
Market CapUS$2.79b

Price to Sales Ratio vs Peers

How does A8B's PS Ratio compare to its peers?

The above table shows the PS ratio for A8B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.1x
ELG Elmos Semiconductor
3.4x9.26%€1.9b
SIS First Sensor
5.5xn/a€564.5m
IFX Infineon Technologies
3.7x8.55%€54.3b
AIXA AIXTRON
3.8x6.93%€2.3b
A8B Ambarella
7.4x12.02%€2.8b

Price-To-Sales vs Peers: A8B is expensive based on its Price-To-Sales Ratio (7.4x) compared to the peer average (4.1x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

How does A8B's PS Ratio compare vs other companies in the DE Semiconductor Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
NW1 Windon Energy Group
0.3xn/aUS$15.10m
M5Z Manz
0.06x1.94%US$3.39m
D0Q Sondrel (Holdings)
0.2xn/aUS$2.02m
M5Z Manz
0.004xn/aUS$741.23k
No more companies available in this PS range
A8B 7.4xIndustry Avg. 2.8xNo. of Companies4PS01.63.24.86.48+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: A8B is expensive based on its Price-To-Sales Ratio (7.4x) compared to the European Semiconductor industry average (2.9x).

Price to Sales Ratio vs Fair Ratio

What is A8B's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

A8B PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.4x
Fair PS Ratio3.8x

Price-To-Sales vs Fair Ratio: A8B is expensive based on its Price-To-Sales Ratio (7.4x) compared to the estimated Fair Price-To-Sales Ratio (3.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst A8B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€54.78
€83.15
+51.79%
10.12%€98.12€68.26n/a11
Jan ’27€58.46
€83.15
+42.23%
10.12%€98.12€68.26n/a11
Dec ’26€64.46
€84.61
+31.26%
9.43%€99.20€69.01n/a11
Nov ’26€72.92
€80.76
+10.75%
11.64%€90.47€56.00n/a11
Oct ’26€69.44
€77.23
+11.21%
17.83%€90.05€42.54n/a12
Sep ’26€69.20
€76.98
+11.25%
17.83%€89.76€42.40n/a12
Aug ’26€57.16
€66.17
+15.76%
17.82%€80.88€42.23n/a12
Jul ’26€55.42
€65.33
+17.87%
18.06%€81.16€42.37n/a12
Jun ’26€54.68
€67.35
+23.17%
18.06%€83.68€43.69n/a12
May ’26€40.80
€70.39
+72.52%
22.97%€97.13€43.80n/a12
Apr ’26€46.00
€90.01
+95.68%
10.46%€105.74€72.10n/a11
Mar ’26€58.66
€90.01
+53.45%
10.46%€105.74€72.10n/a11
Feb ’26€75.36
€87.30
+15.84%
10.70%€96.03€67.22n/a11
Jan ’26€69.92
€85.21
+21.87%
10.50%€95.16€66.61€58.4611
Dec ’25€69.76
€83.46
+19.64%
13.08%€94.65€61.52€64.4611
Nov ’25€51.36
€68.54
+33.44%
13.72%€82.75€52.41€72.9211
Oct ’25€50.22
€68.23
+35.86%
13.30%€80.53€51.00€69.4412
Sep ’25€53.32
€68.52
+28.50%
12.80%€80.97€51.28€69.2013
Aug ’25€49.08
€68.06
+38.68%
15.02%€83.21€46.23€57.1613
Jul ’25€49.51
€66.63
+34.58%
16.16%€82.96€46.09€55.4214
Jun ’25€53.40
€66.63
+24.78%
16.16%€82.96€46.09€54.6814
May ’25€41.88
€67.83
+61.96%
14.97%€84.08€46.71€40.8015
Apr ’25€47.92
€68.72
+43.41%
11.38%€83.05€57.21€46.0015
Mar ’25€51.48
€68.72
+33.50%
11.38%€83.05€57.21€58.6615
Feb ’25€48.44
€66.18
+36.62%
13.26%€82.36€53.08€75.3616
Jan ’25€56.08
€67.44
+20.26%
13.38%€82.44€53.13€69.9216
€82.64
Fair Value
33.7% undervalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/15 10:17
End of Day Share Price 2026/01/15 00:00
Earnings2025/10/31
Annual Earnings2025/01/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Ambarella, Inc. is covered by 23 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David WilliamsAscendiant Capital Markets LLC
Tristan GerraBaird
Ted MoreauBarrington Research Associates, Inc.