Latest Ratios: P/E Ratio -40.3x · EV/EBITDA N/A · ROE -13.1%. (2010–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.2B | $2.7B | $3.2B | $2.1B | $3.4B | $5.1B | $3.3B | $2.0B | $1.2B | $1.7B | $1.7B |
| Enterprise Value | $3.0B | $2.6B | $3.0B | $2.0B | $3.3B | $5.0B | $3.0B | $1.7B | $1.0B | $1.4B | $1.4B |
| P/E Ratio → | -40.35 | — | — | — | — | — | — | — | — | 91.64 | 29.53 |
| P/S Ratio | 8.06 | 7.00 | 11.12 | 9.26 | 10.21 | 15.45 | 14.67 | 8.55 | 5.46 | 5.90 | 5.49 |
| P/B Ratio | 5.16 | 4.60 | 5.64 | 3.74 | 5.69 | 9.37 | 6.89 | 4.37 | 2.96 | 3.61 | 3.75 |
| P/FCF | 54.32 | 47.15 | 135.10 | 297.44 | 118.68 | 176.06 | 126.55 | 52.05 | 57.73 | 21.33 | 15.40 |
| P/OCF | 42.85 | 37.20 | 93.65 | 110.18 | 78.17 | 132.14 | 106.25 | 49.64 | 50.80 | 20.41 | 15.03 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.55 | 10.63 | 8.64 | 9.90 | 14.97 | 13.64 | 7.59 | 4.61 | 4.73 | 4.45 |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | 47.82 | 22.28 |
| EV / EBIT | — | — | — | — | — | — | — | — | — | 57.15 | 22.86 |
| EV / FCF | — | 44.09 | 129.16 | 277.63 | 115.06 | 170.59 | 117.62 | 46.16 | 48.72 | 17.09 | 12.48 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 58.0% | 58.0% | 58.8% | 60.4% | 61.9% | 62.7% | 60.8% | 58.0% | 60.7% | 63.6% | 66.1% |
| Operating Margin | -21.1% | -21.1% | -44.4% | -68.2% | -22.0% | -8.9% | -27.4% | -21.7% | -17.7% | 8.3% | 19.5% |
| Net Profit Margin | -19.4% | -19.4% | -41.1% | -74.8% | -19.4% | -8.0% | -26.8% | -19.6% | -13.4% | 6.4% | 18.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -13.1% | -13.1% | -20.9% | -29.1% | -11.3% | -5.2% | -13.0% | -10.3% | -6.8% | 4.0% | 14.4% |
| ROA | -10.2% | -10.2% | -17.4% | -24.8% | -9.6% | -4.3% | -10.9% | -9.0% | -6.0% | 3.6% | 12.5% |
| ROIC | -14.8% | -14.8% | -22.5% | -25.2% | -12.5% | -7.0% | -19.5% | -16.5% | -16.8% | 13.7% | 42.5% |
| ROCE | -13.9% | -13.9% | -22.2% | -25.7% | -12.4% | -5.6% | -12.6% | -11.0% | -8.8% | 5.1% | 14.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | — | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.30 | -0.25 | -0.25 | -0.17 | -0.29 | -0.49 | -0.49 | -0.46 | -0.72 | -0.71 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | -11.87 | -5.21 |
| Debt / FCF | — | -3.06 | -5.94 | -19.81 | -3.61 | -5.47 | -8.93 | -5.89 | -9.01 | -4.24 | -2.92 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($191M) exceeds total debt ($13M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.31 | 2.31 | 2.65 | 3.38 | 3.65 | 2.99 | 6.72 | 8.44 | 10.50 | 9.27 | 8.61 |
| Quick Ratio | 2.01 | 2.01 | 2.36 | 3.03 | 3.16 | 2.48 | 6.37 | 8.01 | 10.03 | 8.83 | 8.24 |
| Cash Ratio | 1.76 | 1.76 | 2.07 | 2.65 | 2.48 | 1.92 | 5.96 | 7.57 | 9.20 | 8.16 | 7.45 |
| Asset Turnover | — | 0.49 | 0.41 | 0.34 | 0.48 | 0.50 | 0.39 | 0.43 | 0.49 | 0.54 | 0.61 |
| Inventory Turnover | 3.14 | 3.14 | 3.41 | 3.09 | 3.18 | 2.74 | 3.35 | 4.18 | 4.91 | 4.60 | 5.23 |
| Days Sales Outstanding | — | 36.60 | 38.14 | 40.21 | 56.21 | 48.73 | 40.88 | 29.50 | 42.00 | 38.67 | 45.40 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | 1.1% | 3.4% |
| FCF Yield | 1.8% | 2.1% | 0.7% | 0.3% | 0.8% | 0.6% | 0.8% | 1.9% | 1.7% | 4.7% | 6.5% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 8.0% | 3.1% | 1.2% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 8.0% | 3.1% | 1.2% |
| Shares Outstanding | — | $43M | $41M | $40M | $38M | $37M | $35M | $33M | $33M | $35M | $34M |
Persistent R&D Cash Burn
Based on current market data, Ambarella trades at a forward P/E of 78.63 and a P/S of 6.98, suggesting that investors are pricing in significant future growth from the CV3 automotive platform rather than current TTM earnings, which remain negative at -34.90.
The valuation multiples appear to be decoupled from near-term financial performance, reflecting an 'optionality premium' common in high-growth semiconductor firms. This pricing implies that the market expects a rapid transition to profitability as the automotive design win pipeline converts to revenue, though such an outcome remains speculative given the current lack of positive earnings.
As reported in financial statements, Ambarella's ROIC has remained consistently negative, hovering around -3.0% in 2027Q1, which indicates that the company is currently destroying value on invested capital rather than compounding it during this intensive R&D phase.
The persistent negative ROIC reflects the company's inability to generate sufficient operating income to cover the cost of its capital-intensive R&D and engineering talent. Investors should monitor whether the shift toward centralized domain controllers can eventually drive returns above the cost of capital, as current trends suggest a structural decay in capital efficiency.
According to recent quarterly filings, Ambarella's cash conversion cycle has fluctuated significantly, reaching 62 days in 2027Q1, driven largely by inventory days that remain elevated at 144 days compared to historical norms for the semiconductor industry.
The elevated inventory days suggest potential challenges in aligning production with end-market demand, particularly as the company transitions between legacy IoT products and new automotive SoCs. This inefficiency in working capital management exerts additional pressure on the company's cash position, necessitating careful monitoring of inventory obsolescence risks.
Based on the provided balance sheet data, Ambarella's current ratio of 2.43 in 2027Q1 indicates a sufficient short-term liquidity cushion, yet the rapid decline in cash reserves from 2026Q4 levels warrants further investigation into the sustainability of current burn rates.
While the current ratio appears healthy relative to peers, the underlying cash burn required to fund R&D and operations suggests that the liquidity position is more vulnerable than the headline ratio implies. The company's reliance on cash to bridge the gap between R&D investment and revenue realization remains a critical risk factor for short-term solvency.
As indicated by the company's financial profile, the P/E ratio is a fundamentally flawed metric for Ambarella, as it obscures the massive non-cash impact of stock-based compensation and the heavy R&D investment cycle that currently renders GAAP earnings negative.
Investors should instead focus on EV/Sales or adjusted EBITDA metrics that account for the company's growth stage and R&D intensity. Relying on P/E ratios in this context may lead to erroneous conclusions about the company's valuation, as it fails to capture the underlying economic value being created through its proprietary CVflow architecture.
Includes 30+ ratios · 17 years · Updated daily
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Quick answers to the most common questions about buying AMBA stock.
Ambarella, Inc.'s current P/E ratio is -40.3x. The historical average is 38.0x.
Ambarella, Inc.'s return on equity (ROE) is -13.1%. The historical average is 25.2%.
Based on historical data, Ambarella, Inc. is trading at a P/E of -40.3x. Compare with industry peers and growth rates for a complete picture.
Ambarella, Inc. has 58.0% gross margin and -21.1% operating margin.