Complete RMBS Stock Valuation Analysis
Comprehensive intrinsic value analysis using 6 different methodologies
RMBS DCF Analysis
RMBS (Rambus Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $454.8M | $461.1M | $556.6M | $667.6M | $787.3M | $914.4M | $1.0B | $1.2B |
| Revenue Growth % | - | 1.4% | 20.7% | 19.9% | 17.9% | 16.1% | 14.5% | 13.1% |
| EBIT | $76.9M | $153.6M | $183.0M | $185.0M | $218.9M | $255.2M | $293.3M | $332.8M |
| EBIT Margin % | 16.9% | 33.3% | 32.9% | 27.7% | 27.8% | 27.9% | 28.0% | 28.1% |
| Tax Rate % | 25.0% | 0.0% | 10.1% | 16.3% | 17.1% | 18.0% | 18.9% | 19.8% |
| NOPAT | $57.7M | $153.6M | $164.5M | $154.9M | $181.4M | $209.2M | $237.9M | $267.1M |
| NOPAT Margin % | 12.7% | 33.3% | 29.6% | 23.2% | 23.0% | 22.9% | 22.7% | 22.6% |
| Capex | $20.5M | $23.2M | $30.7M | $42.1M | $47.1M | $52.0M | $56.6M | $60.8M |
| Capex / Revenue % | 4.5% | 5.0% | 5.5% | 6.3% | 6.0% | 5.7% | 5.4% | 5.1% |
| Depreciation | $47.1M | $48.4M | $42.7M | $63.5M | $74.9M | $87.0M | $99.6M | $112.6M |
| D&A / Revenue % | 10.4% | 10.5% | 7.7% | 9.5% | 9.5% | 9.5% | 9.5% | 9.5% |
| Change in NWC | $-16.6M | $141.0M | $66.9M | $-12.2M | $-11.5M | $-10.7M | $-9.8M | $-8.8M |
| NWC Change / Revenue % | -3.6% | 30.6% | 12.0% | -1.8% | -1.5% | -1.2% | -0.9% | -0.7% |
| Unlevered FCF | $100.9M | $37.8M | $109.6M | $188.5M | $220.6M | $254.8M | $290.7M | $327.8M |
| UFCF % Chg. | - | -62.5% | 189.8% | 72.0% | 17.1% | 15.5% | 14.1% | 12.7% |
| FCF / Revenue % | 22.2% | 8.2% | 19.7% | 28.2% | 28.0% | 27.9% | 27.8% | 27.7% |
| Discount Factor | - | - | - | 0.912 | 0.832 | 0.759 | 0.692 | 0.631 |
| Present Value of FCF | - | - | - | $171.9M | $183.5M | $193.3M | $201.1M | $206.8M |
| Sum of PV of UFCF | - | - | - | $171.9M | $355.4M | $548.7M | $749.9M | $956.7M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 6.0% |
| Tax Rate | 16.3% |
| After Tax Cost of Debt | 5.0% |
| Risk Free Rate | 4.46% |
| Market Risk Premium | 4.3% |
| Beta | 1.20 |
| Cost of Equity | 9.7% |
| Total Debt | $30.2M |
| Market Cap | $6.0B |
| Total Capital | $6.1B |
| Debt Weighting | 0.5% |
| Equity Weighting | 99.5% |
| WACC | 9.6% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $327.8M |
| Terminal Value | $4.7B |
| PV of Terminal Value | $3.0B |
| Cumulative PV of UFCF | $956.7M |
| Net Debt | $-69.6M |
| Equity Value | $4.0B |
| Shares Outstanding | 109.0M |
| Implied Share Price | $37 |
| Current Share Price | $56 |
| Implied Upside/(Downside) | -34.8% |
Valuation Summary
$36.62
Implied Price
$56.19
Current Price
-34.8%
Upside/Downside
9.6%
WACC
RMBS Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 11 peer companies in Technology
P/E Ratio
$59.32
+5.6%
Peer Median: 31.1x
EV/EBITDA
$55.54
-1.2%
Peer Median: 22.0x
P/S Ratio
$56.19
+0.0%
Peer Median: 10.0x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for RMBS's business model and current situation.
Multiple Comparison
| Multiple | RMBS Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 29.5x | 31.1x | 35.8x | -5.3% | Fair Value |
| EV/EBITDA | 22.0x | 22.0x | 23.4x | 0.0% | Fair Value |
| P/S Ratio | 10.0x | 10.0x | 7.4x | 0.0% | Fair Value |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $10.65B | 27.3x | 12.5x | 2.7x | |
| $9.42B | 670.0x | 108.8x | 11.1x | |
| $7.36B | 135.7x | 21.7x | 2.0x | |
| $7.12B | 31.1x | 26.0x | 11.0x | |
| $6.38B | 125.0x | 93.6x | 13.1x | |
| $6.04B | 29.5x | 22.0x | 10.0x | |
| $5.15B | 16.4x | 10.2x | 2.7x | |
| $4.97B | 62.8x | 31.1x | 6.8x | |
| $4.86B | 0.0x | 0.0x | 21.1x | |
| $3.53B | 844.7x | 0.0x | 383.7x | |
| $3450.04B | 47.9x | 40.1x | 26.4x |
RMBS Graham Number
Benjamin Graham's conservative valuation formula for defensive investors
Input Data
| EPS (TTM) | $1.91 | Latest 10-K |
| Book Value per Share | $10.28 | Latest 10-K Balance Sheet |
| Graham Constant | 22.5 | Benjamin Graham's formula |
Graham Number Result
$21.00
Intrinsic Value
$56.19
Current Price
-62.6%
Upside/Downside
Confidence: High
Conservative value investing approach
Calculation Breakdown
Formula:
√(22.5 × EPS × BVPS)
Step 1: Multiply constant by EPS
22.5 × 1.91 = 42.92
Step 2: Multiply by Book Value per Share
42.92 × 10.28 = 441.15
Step 3: Take square root
√441.15 = 21.00
Graham Number Result:
$21.00
RMBS Graham Intrinsic Value
Growth-adjusted intrinsic value with two formula variants
Formula Selection
V = EPS × (8.5 + 2g)
Graham's original P/E shortcut for growth, no interest-rate adjustment
V = [EPS × (8.5 + 2g) × 4.4] / Y
Graham's 1974 refinement: adds rate-environment sensitivity
Active Formula: Base-Growth
1.91 × (8.5 + 2 × 114.2%)
Input Data & Growth Assumptions
Current EPS (TTM)$1.91
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y114.2%
Financial statements
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$451.81
Intrinsic Value
$56.19
Current Price
+704.1%
Upside/Downside
Base Formula
Growth: 114.2%
RMBS Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$1.91
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y114.2%
3-year earnings growth
114.2%
1%50%
Fair Value Formula: EPS × Growth Rate
$1.91 × 114.2% = $217.80
$217.80
Fair Value
$56.19
Current Price
+287.6%
Upside/Downside
PEG Analysis
29.5x
Current P/E
114.2%
Growth Rate
0.26
PEG Ratio (P/E ÷ Growth Rate)
Significantly Undervalued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).
RMBS Earnings Power Value (EPV)
Normalized earnings-based valuation for sustainable earning power assessment
Earnings Normalization
| Earnings Component | Amount ($B) | Description |
|---|---|---|
| Reported Earnings | 0.2 | Base earnings from financial statements |
| Normalized Earnings | 0.2 | Final normalized earning power |
One-time Items: Remove non-recurring gains/losses
Cyclical Adjustment: Normalize for economic cycle position
EPV Result
$17.94
EPV per Share
$56.19
Current Price
-68.1%
Upside/Downside
9.2%
WACC: 9.2% (calculated from market data)
Confidence: High
Normalized earnings approach
EPV Calculation Breakdown
Enterprise Value Calculation
| Normalized Earnings | $0.2B |
| Cost of Capital | 9.2% |
| Enterprise Value | $2.0B |
Per Share Value
| Enterprise Value | $2.0B |
| Shares Outstanding | 0.1B |
| EPV per Share | $17.94 |
WACC Components
| Cost of Equity | 9.2% |
| After-Tax Cost of Debt | 3.5% |
| Equity Weight | 99.5% |
| Debt Weight | 0.5% |
| WACC | 9.2% |