Rambus Inc. (RMBS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-69.0%

$26.74

vs $86.20 price

Levered DCF

$57.09

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

40.87

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	42.94×	31.65×	22.09×	-275.54×	172.88×	-48.5×	-17.01×	-5.25×
P/B	7.26×	5.07×	7.11×	5.03×	3.77×	2.17×	1.57×	0.82×
P/S	13.99×	10.2×	16.01×	8.62×	9.9×	8.03×	6.82×	3.59×
EV / EBITDA	30.01×	22.98×	30.87×	93.27×	42.67×	92.94×	-44.3×	-62.56×
Gross margin	76.0%	75.4%	69.1%	69.0%	70.0%	62.8%	65.3%	74.3%
Operating margin	36.8%	32.2%	19.8%	17.6%	9.1%	-17.0%	-37.7%	-36.7%
Net margin	32.6%	32.3%	72.4%	-3.1%	5.6%	-16.4%	-40.4%	-68.3%
Current ratio	8.2×	8.44×	7.08×	4.16×	2.56×	8.15×	7.71×	7.62×
Debt / equity	0.03×	0.03×	0.03×	0.06×	0.23×	0.21×	0.2×	0.18×
Interest coverage	189.53×	126.44×	61.41×	42.72×	2.8×	-4.04×	-8.57×	-5.21×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.9%	16.0%	32.2%	-1.8%	2.1%	-4.4%	-9.3%	-15.6%
Return on invested capital	15.0%	12.7%	7.8%	8.9%	2.1%	-3.6%	-6.7%	-6.6%
Return on assets	15.1%	13.4%	26.5%	-1.4%	1.5%	-3.2%	-6.7%	-11.6%
Free cash flow yield	3.4%	3.5%	2.3%	5.4%	6.0%	7.9%	8.0%	9.2%
Earnings yield	2.3%	3.2%	4.5%	-0.4%	0.6%	-2.0%	-5.9%	-19.0%
Enterprise value	$9.8B	$5.6B	$7.3B	$3.8B	$3.3B	$2B	$1.6B	$892.1M
Net debt / EBITDA	-0.43×	-0.29×	-0.27×	-1.96×	1.16×	3.01×	-2.54×	-4.37×
Cash conversion cycle (days)	101	167	152	135	189	269	375	355