The company's average rating is Buy from 10 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Ambarella market sentiment investors' perception of the future value of Ambarella. Let us look at a few aspects of Ambarella technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Ambarella. In general, sophisticated investors focus on analyzing Ambarella stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Ambarella's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Ambarella's intrinsic value. In addition to deriving basic predictive indicators for Ambarella, many experienced traders also check how macroeconomic factors affect Ambarella price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Ambarella's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Ambarella. Your research has to be compared to or analyzed against Ambarella's peers to derive any actionable benefits. When done correctly, Ambarella's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Ambarella.
How important is Ambarella's Liquidity
Ambarella
financial leverage refers to using borrowed capital as a funding source to finance Ambarella ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ambarella financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Ambarella's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Ambarella's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Ambarella's total debt and its cash.
Ambarella Gross Profit
Ambarella Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ambarella previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Ambarella Gross Profit growth over the last 10 years. Please check Ambarella's
gross profit and other
fundamental indicators for more details.
Closer look at Ambarella Standard Deviation
Ambarella has current Standard Deviation of 4.6. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.
Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.
Standard Deviation | = | SQRT(V) |
| = | 4.6 |
Let's now compare Ambarella Standard Deviation to its closest peers:
| AMBA | 4.601904566934051 |
| ACLS | 2.35 |
| ACMR | 3.94 |
| AEHR | 8.37 |
Our perspective of the current Ambarella rise
Current variance is at 21.18.
As of the 29th of November, Ambarella shows the
risk adjusted performance of 0.1598, and Mean Deviation of 2.81. Ambarella
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We have analyzed nineteen
technical drivers for Ambarella, which can be compared to its rivals. Please confirm
Ambarella mean deviation,
standard deviation,
treynor ratio, as well as the
relationship between the
downside deviation and
information ratio to decide if Ambarella is priced correctly, providing market reflects its regular price of 189.82 per share. Given that Ambarella has
jensen alpha of 0.9826, we suggest you to validate Ambarella's prevailing market performance to make sure the company can sustain itself at a future point.
The Bottom Line
Whereas other companies within the semiconductor equipment & materials industry are still a little expensive, even after the recent corrections, Ambarella may offer a potential longer-term growth to investors. While some investors may not share our view we believe it may be a good time to short Ambarella as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ambarella.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Ambarella. Please refer to our
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