Rambus Valuation
| RMBS Stock | USD 56.89 0.93 1.66% |
At this time, the company appears to be fairly valued. Rambus Inc holds a recent Real Value of $57.74 per share. The prevailing price of the company is $56.89. Our model determines the value of Rambus Inc from analyzing the company fundamentals such as Return On Equity of 0.18, shares outstanding of 106.58 M, and Operating Margin of 0.34 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Rambus' valuation include:
Price Book 5.7402 | Enterprise Value 5.6 B | Enterprise Value Ebitda 22.7204 | Price Sales 11.519 | Forward PE 20.4499 |
Fairly Valued
Today
Please note that Rambus' price fluctuation is very steady at this time. Calculation of the real value of Rambus Inc is based on 3 months time horizon. Increasing Rambus' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Rambus stock is determined by what a typical buyer is willing to pay for full or partial control of Rambus Inc. Since Rambus is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Rambus Stock. However, Rambus' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 56.89 | Real 57.74 | Target 70.5 | Hype 55.25 | Naive 51.43 |
The intrinsic value of Rambus' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Rambus' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Rambus Inc helps investors to forecast how Rambus stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Rambus more accurately as focusing exclusively on Rambus' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Rambus' intrinsic value based on its ongoing forecasts of Rambus' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Rambus' closest peers.
Rambus Cash |
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Rambus Valuation Trend
Rambus' real value is important for investors to make better decisions and a more accurate overall view of Rambus' financial worth over time. Using both Rambus' enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Rambus Revenue by Product
Rambus Total Value Analysis
Rambus Inc is at this time forecasted to have valuation of 5.56 B with market capitalization of 5.96 B, debt of 30.71 M, and cash on hands of 351.64 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Rambus fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
5.56 B | 5.96 B | 30.71 M | 351.64 M |
Rambus Investor Information
About 89.0% of the company shares are owned by institutional investors. The company had not issued any dividends in recent years. Rambus Inc had 4:1 split on the 15th of June 2000. Based on the key indicators related to Rambus' liquidity, profitability, solvency, and operating efficiency, Rambus Inc is performing exceptionally good at this time. It has a great probability to report excellent financial results in December.Rambus Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Rambus has an asset utilization ratio of 36.65 percent. This implies that the Company is making $0.37 for each dollar of assets. An increasing asset utilization means that Rambus Inc is more efficient with each dollar of assets it utilizes for everyday operations.Rambus Ownership Allocation
Rambus owns a total of 106.58 Million outstanding shares. The majority of Rambus Inc outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Rambus Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Rambus. Please pay attention to any change in the institutional holdings of Rambus Inc as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Rambus Profitability Analysis
The company reported the previous year's revenue of 461.12 M. Net Income was 333.9 M with profit before overhead, payroll, taxes, and interest of 361.15 M.About Rambus Valuation
The stock valuation mechanism determines Rambus' current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Rambus Inc based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Rambus. We calculate exposure to Rambus's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Rambus's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 371.2 M | 389.8 M | |
| Pretax Profit Margin | 0.41 | 0.43 | |
| Operating Profit Margin | 0.33 | 0.35 | |
| Net Profit Margin | 0.72 | 0.76 | |
| Gross Profit Margin | 0.81 | 0.62 |
Rambus Growth Indicators
Investing in growth stocks can be very risky. If the company such as Rambus does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 110.9 M | |
| Quarterly Earnings Growth Y O Y | -0.516 | |
| Forward Price Earnings | 20.4499 |
Rambus Current Valuation Indicators
Rambus' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Rambus' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Rambus, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Rambus' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Rambus' worth.Additional Tools for Rambus Stock Analysis
When running Rambus' price analysis, check to measure Rambus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rambus is operating at the current time. Most of Rambus' value examination focuses on studying past and present price action to predict the probability of Rambus' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rambus' price. Additionally, you may evaluate how the addition of Rambus to your portfolios can decrease your overall portfolio volatility.