Ambarella Current Valuation vs. Operating Margin
| AMBA Stock | USD 60.34 10.56 14.89% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.69 | 0.5919 |
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For Ambarella profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ambarella to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ambarella utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ambarella's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ambarella over time as well as its relative position and ranking within its peers.
Ambarella | Build AI portfolio with Ambarella Stock |
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ambarella. If investors know Ambarella will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Ambarella assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Earnings Share (1.88) | Revenue Per Share | Quarterly Revenue Growth 0.201 | Return On Assets | Return On Equity |
Ambarella's market price often diverges from its book value, the accounting figure shown on Ambarella's balance sheet. Smart investors calculate Ambarella's intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Since Ambarella's trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
Understanding that Ambarella's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Ambarella represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. However, Ambarella's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Ambarella Operating Margin vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ambarella's current stock value. Our valuation model uses many indicators to compare Ambarella value to that of its competitors to determine the firm's financial worth. Ambarella is rated below average in current valuation category among its peers. It also is rated below average in operating margin category among its peers . At present, Ambarella's Operating Profit Margin is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ambarella's earnings, one of the primary drivers of an investment's value.Ambarella's Earnings Breakdown by Geography
Ambarella Current Valuation vs. Competition
Ambarella is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is presently estimated at about 52.7 Billion. Ambarella holds roughly 2.77 Billion in current valuation claiming about 5% of equities under Information Technology industry.
Ambarella Operating Margin vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Ambarella |
| = | 2.77 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Ambarella |
| = | (0.18) % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Ambarella Operating Margin Comparison
Ambarella is currently under evaluation in operating margin category among its peers.
Ambarella Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ambarella, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ambarella will eventually generate negative long term returns. The profitability progress is the general direction of Ambarella's change in net profit over the period of time. It can combine multiple indicators of Ambarella, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 573 K | 601.6 K | |
| Operating Income | -82.5 M | -78.4 M | |
| Income Before Tax | -73.7 M | -70 M | |
| Total Other Income Expense Net | 8.8 M | 9.3 M | |
| Net Loss | -105.4 M | -100.1 M | |
| Income Tax Expense | 2.2 M | 2.8 M | |
| Net Loss | -58.8 M | -55.9 M | |
| Net Loss | -105.4 M | -100.1 M | |
| Non Operating Income Net Other | 1.2 M | 1.1 M | |
| Interest Income | 3.9 M | 3.4 M | |
| Change To Netincome | 121.7 M | 127.7 M | |
| Net Loss | (1.78) | (1.69) | |
| Income Quality | (0.33) | (0.32) | |
| Net Income Per E B T | 1.03 | 0.76 |
Ambarella Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ambarella. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ambarella position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ambarella's important profitability drivers and their relationship over time.
Ambarella Earnings per Share Projection vs Actual
Use Ambarella in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ambarella position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ambarella will appreciate offsetting losses from the drop in the long position's value.Ambarella Pair Trading
Ambarella Pair Trading Analysis
The ability to find closely correlated positions to Ambarella could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ambarella when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ambarella - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ambarella to buy it.
The correlation of Ambarella is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ambarella moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ambarella moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ambarella can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Ambarella position
In addition to having Ambarella in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Corporate Bonds Funds Thematic Idea Now
Corporate Bonds Funds
Funds or Etfs investing in different types of corporate debt instruments. The Corporate Bonds Funds theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corporate Bonds Funds Theme or any other thematic opportunities.
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Check out Trending Equities. For information on how to trade Ambarella Stock refer to our How to Trade Ambarella Stock guide.You can also try the AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
To fully project Ambarella's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ambarella at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ambarella's income statement, its balance sheet, and the statement of cash flows.