Ambarella, Inc.

LSE:0YU1 Stock Report

Market Cap: US$3.1b

Ambarella Valuation

Is 0YU1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 Fair Value

What is the Fair Price of 0YU1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$52.97
Fair Value
43.5% overvalued intrinsic discount
11
Number of Analysts

Below Fair Value: 0YU1 ($76.04) is trading above our estimate of fair value ($52.97)

Significantly Below Fair Value: 0YU1 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0YU1?

Key metric: As 0YU1 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0YU1. This is calculated by dividing 0YU1's market cap by their current revenue.
What is 0YU1's PS Ratio?
PS Ratio12.6x
SalesUS$252.47m
Market CapUS$3.10b

Price to Sales Ratio vs Peers

How does 0YU1's PS Ratio compare to its peers?

The above table shows the PS ratio for 0YU1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.3x
AWE Alphawave IP Group
4.2x33.8%UK£764.7m
CML CML Microsystems
1.8xn/aUK£45.4m
ENSI EnSilica
1.7x15.0%UK£42.5m
KMK Kromek Group
1.6xn/aUK£31.4m
0YU1 Ambarella
12.6x16.7%US$3.1b

Price-To-Sales vs Peers: 0YU1 is expensive based on its Price-To-Sales Ratio (12.6x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does 0YU1's PS Ratio compare vs other companies in the European Semiconductor Industry?

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
0YU1 12.6xIndustry Avg. 1.8xNo. of Companies9PS01.22.43.64.86+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0YU1 is expensive based on its Price-To-Sales Ratio (12.6x) compared to the European Semiconductor industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is 0YU1'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.

0YU1 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio12.6x
Fair PS Ratio5.9x

Price-To-Sales vs Fair Ratio: 0YU1 is expensive based on its Price-To-Sales Ratio (12.6x) compared to the estimated Fair Price-To-Sales Ratio (5.9x).

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 0YU1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$76.04
US$89.55
+17.8%
10.5%US$100.00US$70.00n/a11
Jan ’26US$72.04
US$89.55
+24.3%
10.5%US$100.00US$70.00n/a11
Dec ’25US$71.60
US$88.18
+23.2%
13.1%US$100.00US$65.00n/a11
Nov ’25US$57.78
US$74.55
+29.0%
13.7%US$90.00US$57.00n/a11
Oct ’25US$54.01
US$76.25
+41.2%
13.3%US$90.00US$57.00n/a12
Sep ’25US$59.79
US$76.15
+27.4%
12.8%US$90.00US$57.00n/a13
Aug ’25US$48.47
US$73.62
+51.9%
15.0%US$90.00US$50.00n/a13
Jul ’25US$53.53
US$72.29
+35.0%
16.2%US$90.00US$50.00n/a14
Jun ’25US$57.22
US$72.29
+26.3%
16.2%US$90.00US$50.00n/a14
May ’25US$45.30
US$72.61
+60.3%
15.0%US$90.00US$50.00n/a15
Apr ’25US$51.13
US$74.47
+45.7%
11.4%US$90.00US$62.00n/a15
Mar ’25US$58.01
US$74.47
+28.4%
11.4%US$90.00US$62.00n/a15
Feb ’25US$52.39
US$72.32
+38.0%
13.3%US$90.00US$58.00n/a16
Jan ’25US$61.69
US$73.63
+19.3%
13.4%US$90.00US$58.00US$72.0416
Dec ’24US$59.10
US$75.18
+27.2%
16.5%US$105.00US$58.00US$71.6017
Nov ’24US$44.02
US$75.06
+70.5%
17.1%US$105.00US$58.00US$57.7817
Oct ’24US$52.93
US$78.71
+48.7%
15.5%US$105.00US$58.00US$54.0117
Sep ’24US$63.08
US$79.25
+25.6%
15.6%US$105.00US$58.00US$59.7916
Aug ’24US$83.30
US$92.18
+10.7%
12.3%US$120.00US$70.00US$48.4717
Jul ’24US$83.72
US$91.18
+8.9%
13.1%US$120.00US$70.00US$53.5317
Jun ’24US$74.77
US$91.69
+22.6%
14.0%US$120.00US$70.00US$57.2217
May ’24US$58.64
US$96.29
+64.2%
12.0%US$120.00US$75.00US$45.3017
Apr ’24US$75.37
US$98.50
+30.7%
11.6%US$120.00US$75.00US$51.1318
Mar ’24US$84.00
US$97.82
+16.5%
11.7%US$120.00US$75.00US$58.0117
Feb ’24US$88.07
US$97.59
+10.8%
16.1%US$150.00US$75.00US$52.3918
Jan ’24US$76.26
US$97.09
+27.3%
16.8%US$150.00US$65.00US$61.6919
Analyst Price Target
Consensus Narrative from 11 Analysts
US$89.35
Fair Value
14.9% undervalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/08 03:28
End of Day Share Price 2025/01/08 00:00
Earnings2024/10/31
Annual Earnings2024/01/31

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 here.

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 .

Analyst Sources

Ambarella, Inc. is covered by 25 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Tayla-Blair BothaArete Research Services LLP
David WilliamsAscendiant Capital Markets LLC
Tristan GerraBaird