Ratio Analysis: Unpacking Ambarella Inc (AMBA)’s Price-to-Cash and Price-to-Free Cash Flow

Ulysses Smith

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After finishing at $83.47 in the prior trading day, Ambarella Inc (NASDAQ: AMBA) closed at $83.14, down -0.40%. In other words, the price has decreased by -$0.40 from its previous closing price. On the day, 0.55 million shares were traded. AMBA stock price reached its highest trading level at $84.3515 during the session, while it also had its lowest trading level at $82.4.

Ratios:

Our goal is to gain a better understanding of AMBA by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 13.57 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 95.98. For the most recent quarter (mrq), Quick Ratio is recorded 2.46 and its Current Ratio is at 2.73. In the meantime, Its Debt-to-Equity ratio is 0.01 whereas as Long-Term Debt/Eq ratio is at 0.00.

On August 29, 2025, Needham reiterated its Buy rating and also lowered its target price recommendation from $90 to $100. BofA Securities Upgraded its Underperform to Neutral on December 16, 2024, while the target price for the stock was maintained at $80.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Sep 10 ’25 when YUN-LUNG CHEN bought 8,492 shares for $84.42 per share.

CHRISTOPHER DAY bought 1,772 shares of AMBA for $150,620 on Sep 08 ’25. On Jul 14 ’25, another insider, CHRISTOPHER DAY, who serves as the Officer of the company, bought 2,907 shares for $66.83 each.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, AMBA now has a Market Capitalization of 3549163520 and an Enterprise Value of 3291422976. For the stock, the TTM Price-to-Sale (P/S) ratio is 10.20 while its Price-to-Book (P/B) ratio in mrq is 6.15. Its current Enterprise Value per Revenue stands at 9.457 whereas that against EBITDA is -38.487.

Stock Price History:

The Beta on a monthly basis for AMBA is 2.12, which has changed by 0.55634594 over the last 52 weeks, in comparison to a change of 0.17089343 over the same period for the S&P500. Over the past 52 weeks, AMBA has reached a high of $93.44, while it has fallen to a 52-week low of $38.86. The 50-Day Moving Average of the stock is 18.60%, while the 200-Day Moving Average is calculated to be 29.03%.

Shares Statistics:

The stock has traded on average 917.29K shares per day over the past 3-months and 1660580 shares per day over the last 10 days, according to various share statistics. A total of 42.67M shares are outstanding, with a floating share count of 40.20M. Insiders hold about 5.83% of the company’s shares, while institutions hold 85.13% stake in the company. Shares short for AMBA as of 1756425600 were 2071750 with a Short Ratio of 2.26, compared to 1753920000 on 2171994. Therefore, it implies a Short% of Shares Outstanding of 2071750 and a Short% of Float of 5.7700000000000005.

Earnings Estimates

The firm’s stock currently is rated by 12.0 analysts. The consensus estimate for the next quarter is $0.07, with high estimates of $0.13 and low estimates of $0.01.

Analysts are recommending an EPS of between $0.6 and $0.43 for the fiscal current year, implying an average EPS of $0.49. EPS for the following year is $0.48, with 13.0 analysts recommending between $0.58 and $0.2.

Revenue Estimates

11 analysts predict $104.12M in revenue for the current quarter. It ranges from a high estimate of $104.5M to a low estimate of $103.97M. As of the current estimate, Ambarella Inc’s year-ago sales were $82.65MFor the next quarter, 11 analysts are estimating revenue of $94.1M. There is a high estimate of $95.8M for the next quarter, whereas the lowest estimate is $93.6M.

A total of 13 analysts have provided revenue estimates for AMBA’s current fiscal year. The highest revenue estimate was $381.3M, while the lowest revenue estimate was $378.99M, resulting in an average revenue estimate of $379.65M. In the same quarter a year ago, actual revenue was $284.87MBased on 14 analysts’ estimates, the company’s revenue will be $407.72M in the next fiscal year. The high estimate is $426.5M and the low estimate is $378M.

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