Rambus Inc.

NasdaqGS:RMBS Stock Report

Market Cap: US$5.7b

Rambus Valuation

Is RMBS 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: RMBS ($51.31) is trading below our estimate of fair value ($54.71)

Significantly Below Fair Value: RMBS 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 RMBS?

Key metric: As RMBS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RMBS. This is calculated by dividing RMBS's market cap by their current earnings.
What is RMBS's PE Ratio?
PE Ratio31x
EarningsUS$176.16m
Market CapUS$5.69b

Price to Earnings Ratio vs Peers

How does RMBS's PE Ratio compare to its peers?

The above table shows the PE ratio for RMBS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.1x
CRUS Cirrus Logic
16.3x4.3%US$5.4b
LSCC Lattice Semiconductor
47.4x9.4%US$7.0b
TSEM Tower Semiconductor
24x10.3%US$5.2b
OLED Universal Display
32.8x13.7%US$7.9b
RMBS Rambus
31x18.1%US$5.7b

Price-To-Earnings vs Peers: RMBS is expensive based on its Price-To-Earnings Ratio (31x) compared to the peer average (30.1x).

Price to Earnings Ratio vs Industry

How does RMBS's PE Ratio compare vs other companies in the US Semiconductor Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.7xn/aUS$160.91m
SQNS Sequans Communications
1.5x-156.5%US$66.23m
No more companies available in this PE range
RMBS 31.0xIndustry Avg. 30.5xNo. of Companies11PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RMBS is good value based on its Price-To-Earnings Ratio (31x) compared to the US Semiconductor industry average (31.9x).

Price to Earnings Ratio vs Fair Ratio

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

RMBS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31x
Fair PE Ratio27.2x

Price-To-Earnings vs Fair Ratio: RMBS is expensive based on its Price-To-Earnings Ratio (31x) compared to the estimated Fair Price-To-Earnings Ratio (27.2x).

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 RMBS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$51.31
US$64.67
+26.0%
17.4%US$85.00US$50.00n/a6
Nov ’25US$47.95
US$64.00
+33.5%
21.0%US$85.00US$50.00n/a4
Oct ’25US$40.13
US$66.50
+65.7%
18.7%US$85.00US$50.00n/a4
Sep ’25US$44.72
US$69.25
+54.9%
13.4%US$85.00US$61.00n/a4
Aug ’25US$44.88
US$69.25
+54.3%
13.4%US$85.00US$61.00n/a4
Jul ’25US$58.00
US$76.20
+31.4%
11.6%US$85.00US$61.00n/a5
Jun ’25US$55.26
US$76.20
+37.9%
11.6%US$85.00US$61.00n/a5
May ’25US$52.75
US$77.93
+47.7%
8.8%US$85.00US$65.00n/a6
Apr ’25US$62.23
US$76.96
+23.7%
8.6%US$85.00US$65.00n/a7
Mar ’25US$64.49
US$76.96
+19.3%
8.6%US$85.00US$65.00n/a7
Feb ’25US$68.15
US$77.81
+14.2%
12.1%US$92.00US$65.00n/a7
Jan ’25US$68.25
US$75.50
+10.6%
13.2%US$92.00US$65.00n/a6
Dec ’24US$68.93
US$70.50
+2.3%
5.5%US$75.00US$65.00n/a6
Nov ’24US$54.19
US$70.50
+30.1%
5.5%US$75.00US$65.00US$47.956
Oct ’24US$55.79
US$70.50
+26.4%
5.5%US$75.00US$65.00US$40.136
Sep ’24US$57.26
US$69.83
+22.0%
5.1%US$75.00US$65.00US$44.726
Aug ’24US$54.87
US$69.83
+27.3%
5.1%US$75.00US$65.00US$44.886
Jul ’24US$64.17
US$65.50
+2.1%
9.6%US$73.00US$55.00US$58.006
Jun ’24US$66.07
US$60.83
-7.9%
8.8%US$70.00US$55.00US$55.266
May ’24US$45.28
US$56.50
+24.8%
16.4%US$70.00US$39.00US$52.756
Apr ’24US$51.26
US$54.00
+5.3%
19.3%US$70.00US$39.00US$62.236
Mar ’24US$45.03
US$50.80
+12.8%
16.3%US$60.00US$39.00US$64.495
Feb ’24US$43.41
US$41.60
-4.2%
15.8%US$50.00US$32.00US$68.155
Jan ’24US$35.82
US$36.40
+1.6%
12.4%US$45.00US$32.00US$68.255
Dec ’23US$38.70
US$36.40
-5.9%
12.4%US$45.00US$32.00US$68.935
Nov ’23US$32.83
US$36.40
+10.9%
12.4%US$45.00US$32.00US$54.195

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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