Ambarella, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: normalized FCF base $30M/yr (approximated from Q2 FY27 non-GAAP net income of $8.2M annualized, given minimal capex as a fabless chipmaker; TTM actual FCF is only $9.72M on $417.8M revenue); growth 20%/yr yrs 1-5, 10%/yr yrs 6-10; 12% discount rate (small-cap, execution risk); 4% terminal growth; net cash $272.3M (no debt); 44.5M non-GAAP diluted shares.

Reasoning: Ambarella is a fabless edge-AI/computer-vision chipmaker still scaling toward profitability (GAAP net loss TTM -$56.3M vs. positive non-GAAP income and improving FCF), so growth-stage DCF off a modest current earnings base is more defensible than extrapolating thin trailing FCF; resulting value is far below the market price, indicating the stock is priced for an AI-vision growth narrative well ahead of demonstrated cash generation.