RMBS

Rambus Inc.

Fundamental data last updated:September 14, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Rambus Inc. provides semiconductor products in the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, China, and internationally. The company offers DDR memory interface chips, including DDR5, DDR4 and DDR3 memory interface chips to module manufacturers and OEMs; silicon IP comprising, interface and security IP solutions that move and protect data in advanced applications; and physical interface and digital controller IP to offer industry-leading, integrated memory and interconnect subsystems. It also provides a portfolio of patents that covers memory architecture, high-speed serial links, and security products. The company markets its products and services through its direct sales force and distributors. Rambus Inc. was incorporated in 1990 and is headquartered in San Jose, California.

 


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VALUATION

P/E

67.56

Market Cap ($M USD)

$15.56B

Forward P/E

30.50

PEG

0.25

PRICE TO SALES

21.57

PRICE TO BOOK

11.15

EV / EBITDA

51.53

5-Year Average P/E

Free Cash Flow Yield

2.15%

DCF Value

$28.56

Graham Number

$24.86

Price to FCF

46.41

EV to FCF

46.07

Earnings Yield

1.48%

FCF Yield

2.15%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.13

Next Year EPS Growth Estimate

$4.72

Next Year Revenue Growth Estimate

$1.27B

Return on Equity (ROE)

17.44%

FREE CASH FLOW

Operating Margin

35.89%

Debt-to-Equity

0.03

Piotroski F-Score

6

Altman Z-Score

74.69

Return on Invested Capital (ROIC)

18.08%

Current Ratio

9.82

Quick Ratio

9.25

Net Debt to EBITDA

-0.37

Interest Coverage

203.01

Gross Profit margin

77.03%

FCF PER SHARE

$3.10

REVENUE PER SHARE

$6.68

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Gainseekers Quantitative Analysis

Summary

Rambus Inc. presents a perplexing valuation story. Despite a sky-high Price/Earnings ratio of 60.70, the stock traded significantly below its DCF Value, suggesting a potential mispricing. The Forward P/E of 27.41 indicates expected earnings growth, aligning with a robust Altman Z-score of 61.71, which underscores financial safety. However, an Earnings Yield of just 1.65% raises questions about immediate returns. The market seems to be pricing in substantial future growth, but the current valuation metrics suggest caution.

AI Exposure / Tech Reliance

Operating in the semiconductor industry, Rambus is well-positioned to capitalize on AI and tech advancements. Its focus on high-margin, innovative solutions aligns with the industry's shift towards AI-driven applications. This strategic positioning could enhance its resilience and growth prospects in a rapidly evolving tech landscape.

The Bull Case

For the discerning GARP investor, Rambus offers compelling strengths. A Return on Invested Capital of 18.08% and a Piotroski F-Score of 6 indicate efficient capital use and solid financial health. The company's Operating Margin of 35.89% reflects strong pricing power, while a low Debt/Equity ratio of 0.032 highlights financial prudence. These metrics suggest a company capable of delivering sustainable growth and shareholder value.

The Bear Case

Yet, the stock is not without its pitfalls. With a Price/Sales ratio of 19.38 and Price/Book of 10.02, it appears overvalued relative to its tangible assets and sales. The Price to Free Cash Flow of 41.69 further emphasizes this overvaluation, while the stock's proximity to its 52-week high suggests technical overextension. Investors should be wary of these structural risks, which could overshadow its growth narrative.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$135.67

Institutional Ownership %

1-Year Beta

1.79

Insider Buying % (6 Mo)

Distance to 52-Week High

12.48%

Distance to 52-Week Low

63.77%

EARNINGS SURPRISE %

3.28%

50-DAY SMA

$117.26

200-DAY SMA

$101.49

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.