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Rambus Inc
NASDAQ:RMBS

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Rambus Inc
NASDAQ:RMBS
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Price: 115.11 USD 2.63% Market Closed
Market Cap: $12.5B

EV/IC

15.8
Current
117%
More Expensive
vs 3-y average of 7.3

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
15.8
=
Enterprise Value
$9.9B
/
Invested Capital
$731.8m

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
15.8
=
Enterprise Value
$9.9B
/
Invested Capital
$731.8m

Valuation Scenarios

Rambus Inc is trading above its 3-year average

If EV/IC returns to its 3-Year Average (7.3), the stock would be worth $53.15 (54% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-91%
Maximum Upside
No Upside Scenarios
Average Downside
69%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 15.8 $115.11
0%
3-Year Average 7.3 $53.15
-54%
5-Year Average 6.2 $44.76
-61%
Industry Average 4.4 $31.73
-72%
Country Average 1.5 $10.81
-91%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
US
Rambus Inc
NASDAQ:RMBS
12.4B USD 15.8 53.4
US
NVIDIA Corp
NASDAQ:NVDA
4.9T USD 35.7 40.4
US
Broadcom Inc
NASDAQ:AVGO
2T USD 13.2 79.2
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
56.5T TWD 10.4 29.8
US
Micron Technology Inc
NASDAQ:MU
583.4B USD 7 24.2
US
Advanced Micro Devices Inc
NASDAQ:AMD
577.8B USD 9 133.3
US
Intel Corp
NASDAQ:INTC
474.6B USD 2.9 -149.5
KR
SK Hynix Inc
KRX:000660
701.7T KRW 5 16.1
US
Texas Instruments Inc
NASDAQ:TXN
254.9B USD 9.1 47.8
UK
Arm Holdings PLC
NASDAQ:ARM
223.4B USD 33.6 278.9
US
Analog Devices Inc
NASDAQ:ADI
196.4B USD 4.6 72.6

Market Distribution

Higher than 94% of companies in the United States of America
Percentile
94rd
Based on 11 657 companies
94rd percentile
15.8
Low
0 — 0.9
Typical Range
0.9 — 2.9
High
2.9 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 0.9
Median 1.5
70th Percentile 2.9
Max 566 432.7

Rambus Inc
Glance View

Rambus Inc., founded in 1990, has carved a distinctive niche in the semiconductor industry with its innovative approach to chip architecture and memory interface technology. Initially gaining notoriety for its high-speed designs in the demanding world of computer memory, Rambus leveraged its intellectual property to become a licensing powerhouse. Their revenue model primarily hinges on licensing fees garnered from their extensive patent portfolio, which relates to their pioneering work in DRAM and interface technology. This part of the business model is significant, as it enables Rambus to collect royalties and ensure its innovations are embedded across a wide range of consumer electronics, data centers, and telecommunications equipment. Beyond its robust licensing operations, Rambus is intently focused on evolving its business to meet the burgeoning demands of data-centric technologies. This transition is evident in their expansion into complementary markets where they provide cutting-edge solutions in security, high-speed interfaces, and silicon IP cores. The company actively develops tailored memory and interface solutions that bolster performance and security for emerging applications like artificial intelligence and cloud computing. By marrying their legacy of innovation in memory solutions with new advancements in security and interfaces, Rambus positions itself to meet the ever-evolving demands of the digital age, ensuring it remains a pivotal player in the semiconductor realm.

RMBS Intrinsic Value
65.7 USD
Overvaluation 43%
Intrinsic Value
Price $115.11
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