The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$81.50||$57.20||$61.70||$72.19||$83.74|
|Source||Analyst x1||Analyst x2||Analyst x1||Extrapolated @ (17%, capped from 20.37%)||Extrapolated @ (16%, capped from 20.37%)|
Discounted (@ 9.8%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $84 × (1 + 2.47%) ÷ (9.8% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$1,004 = $270 + $734
Value = Total value / Shares Outstanding ($1,004 / 33)Discount to Share Price
Value per share:
Current discount (share price of $52.6): -74.47%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 9.8% = 2.47% + (0.973 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($1,791,890,130).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.973 = 0.973 (1 + (1- 35%) (0%))
Levered Beta used in calculation = 0.973
Dr. Feng-Ming Wang, also known as Fermi, PhD., Co-founded Ambarella, Inc in 2004 and serves as its Chief Executive Officer and President. Dr. Wang served as the Chief Executive Officer at Afara Websystems, which he co-founded. Dr. Wang held several senior management positions at C-Cube Microsystems. As Vice President and General Manager of the Home Media division of C-Cube, he had P&L responsibility for silicon solutions for the DVD, digital video recorder (DVR) and digital video distribution and production markets. As Vice President and General Manager of Codec division of C-Cube, he launched its MPEG codec business and served in both engineering and business management roles. During this time, Dr. Wang and his team were responsible for growing the business by 200 percent in two years and developing the world's first MPEG codec chip. Dr. Wang owns several digital video-related patents. Dr. Wang holds a B.S. degree in Electrical Engineering from National Taiwan University and an M.S. degree and Ph.D. in Electrical Engineering from Columbia University.
Average tenure and age of the Ambarella management team in years:
Average tenure and age of the Ambarella board of directors in years:
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for AMBA Price per share = $54.46 Earnings per share = $1.612 ∴ Price-Earnings Ratio = $54.46 ÷ $1.612 = 33.8x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared riskier firms with AMBA, then investors would naturally value AMBA at a higher price since it is a less risky investment. … Similarly, if you accidentally compared lower growth firms with AMBA, investors would also value AMBA at a higher price since it is a higher growth investment.Simply Wall St - – Full article
NasdaqGS:AMBA Future Profit Nov 23rd 17 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at AMBA future expectations. … If you believe AMBA is currently trading above its peers, selling high and buying it back up again when its price falls towards its real value can be profitable.Simply Wall St - – Full article
Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD) video capture, sharing, and display worldwide. The company’s system-on-a-chip designs integrated HD video processing, image processing, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions enable the creation of video content for wearable sports cameras, automotive aftermarket cameras, and professional and consumer Internet Protocol (IP) security cameras, as well as cameras incorporated into unmanned aerial vehicles in the camera market; and manage IP video traffic, broadcast encoding and transcoding, and IP video delivery applications in the infrastructure market. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and logistics providers. Ambarella, Inc. was founded in 2004 and is headquartered in Santa Clara, California.
3101 Jay Street,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||AMBA||Ordinary Shares||Nasdaq Global Select||US||USD||10. Oct 2012|
|DB||A8B||Ordinary Shares||Deutsche Boerse AG||DE||EUR||10. Oct 2012|
|Company Analysis updated:||2018/01/19|
|Last estimates confirmation:||2018/01/03|
|Last earnings update:||2017/10/31|
|Last annual earnings update:||2017/01/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.