AMBANEUTRAL

EV/EBITDA

-44.9x

Higher than 11% of Technology sector peers

Updated 622h ago

Sector Performance

11th percentile

AMBA

-44.9x

Sector Median

19.0x

Sector Avg

78.6x

📊

Deep Analysis

Ambarella’s EV/EBITDA of -44.9x means its enterprise value (market cap plus debt minus cash) is negative relative to its earnings before interest, taxes, depreciation, and amortization, indicating the company is currently unprofitable on an EBITDA basis.

This ratio sits far below the Technology sector median of 24.2x and places Ambarella in the 11th percentile among its sector peers, meaning nearly 90% of peers trade at a higher (positive) multiple. The trend data is not available—both the year-over-year and quarter-over-quarter changes are listed as N/A, and no historical values beyond the current reading have been provided. The combination of a deeply negative EV/EBITDA with no trend information suggests elevated risk from ongoing losses, but the lack of directional data makes it impossible to assess whether conditions are improving or worsening. This metric contradicts the overall NEUTRAL verdict because a negative EV/EBITDA is normally a bearish signal, though without trend context it cannot independently overturn the neutral stance.

Frequently Asked Questions

What does the EV/EBITDA tell investors about AMBA?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does AMBA's EV/EBITDA compare to its sector?

AMBA's EV/EBITDA of -44.9x compares to a Technology sector median of 19.0x, placing it in the 11th percentile.

Who are AMBA's closest peers by EV/EBITDA?

The closest Technology peers by EV/EBITDA include: BMBL (3.0x), STEM (2.1x), MSTR (-9.3x), WOLF (-10.6x), ASAN (-16.7x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.