AMBACAUTIOUS

AMBA FCF Yield Analysis

2.1%

Higher than 44% of Technology sector peers

Updated 2529h ago·SEC filings & market data

Key Takeaway

Ambarella’s current FCF Yield of 2.1% means that for every $100 of its stock price, the company generates about $2.10 in free cash flow—cash left after operating expenses and capital spending.

Sector Performance

44th percentile

AMBA

2.1%

Sector Median

2.5%

Sector Avg

3.9%

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Deep Analysis

Ambarella’s current FCF Yield of 2.1% means that for every $100 of its stock price, the company generates about $2.10 in free cash flow—cash left after operating expenses and capital spending.

This yield sits below the sector median of 3.3%, placing Ambarella in the 31st percentile among its technology peers, indicating relatively lower cash-flow generation per dollar of equity value. The metric shows no trend data because both year-over-year and quarter-over-quarter changes are marked as N/A, and no historical values beyond the current 2.1% are available. With a yield below the sector median and no trend to assess direction, the combination suggests limited current cash-flow efficiency without evidence of improvement or deterioration, implying a neutral risk-opportunity profile. This level and lack of trend directly support the overall NEUTRAL verdict, as the metric neither signals a compelling undervaluation nor a clear red flag relative to peers.

Frequently Asked Questions

What does the FCF Yield tell investors about AMBA?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does AMBA's FCF Yield compare to its sector?

AMBA's FCF Yield of 2.1% compares to a Technology sector median of 2.5%, placing it in the 44th percentile.

Who are AMBA's closest peers by FCF Yield?

The closest Technology peers by FCF Yield include: SMAR (2.4%), ANSS (2.6%), AAPL (2.2%), MODN (2.0%), MSFT (1.9%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.