Rambus RMBS
United StatesTechnology · SemiconductorsUSD
141.57 USD (+27.0%)
7 analysts
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Rambus is a semiconductor company that designs and licenses high-value intellectual property (IP) for memory and data security, and sells memory interface chips to data center and electronics manufacturers.
Key points
from its scores- ✓Very solid balance sheet8.8
- ✓High-quality business7.9
- ✓Strong growth7.6
- ✕Poor share-price trend1.4
- ✕Little or no dividend1.5
AI analysis
bottom line, main risk, context and newsQuality and balance sheet are excellent, but valuation already discounts growth that current momentum does not confirm.
Rambus combines a solid moat (80% gross margin, 17.8% ROE) with an impeccable balance sheet (net cash, ND/EBITDA -2.54), but its valuation is very demanding (P/E 51, EV/EBITDA 35.7) and momentum is negative (12-1: -2.9%), limiting appeal despite 20% revenue growth.
The demanding valuation (P/E 51, PEG 3.8) leaves little room for error: any disappointment in the AI cycle or in adoption of its licenses could trigger a sharp correction, amplified by high beta (2.58).
Context and risks
Rambus has no material exposure to current macro factors. Its IP and memory chip business benefits from the AI cycle, but its balance sheet is healthy and it does not depend on commodities or shipping routes. The main risk is the high valuation (P/E 51) and dependence on a technology cycle, not the macro context.
Is Rambus stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 69% above the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 51.1 | 31.3 | +63% |
| EV / EBITDA | 35.7 | 20.4 | +75% |
| Price / book | 8.2 | 6.3 | +31% |
| Price / sales | 15.9 | 5.3 | +202% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.0 out of 10 (median for Technology: 5.3).
Average analyst target: 141.57 USD, +27.0% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 7.9 (sector 6.4), Growth 7.6 (sector 7.5).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 51.1
- Forward P/E
- 29.6
- EV / EBITDA
- 35.7
- Price / book
- 8.2
- Price / sales
- 15.9
- PEG
- 3.80
- Market cap
- 12.1B USD
- Enterprise value
- 11.3B USD
Profitability
- ROE
- 17.8%
- ROA
- 11.0%
- ROIC (approx.)
- 18.7%
- Gross margin
- 80.4%
- Operating margin
- 36.7%
- Net margin
- 31.7%
- Free cash flow
- 202.3M USD
- FCF yield
- 1.7%
- Cash conversion
- 64%
Solvency
- Total debt
- 21.8M USD
- Net debt
- −803.1M USD
- Cash
- 824.9M USD
- EBITDA
- 316.5M USD
- Net debt / EBITDA
- −2.54
- Debt / equity
- 1.49
- Current ratio
- 9.75
- Quick ratio
- 8.90
Growth
- Revenue growth
- +20.4%
- Earnings growth
- +15.1%
- EPS (TTM)
- 2.18 USD
- EPS (forward)
- 3.77 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.85
- Analyst consensus
- Strong buy (7)
- Target price
- 141.57 USD
- 52-week range
- 77.89 – 174.10
Recent news
All RMBS news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Rambus
Is Rambus stock cheap or expensive?
On P/E and EV / EBITDA, it trades 69% above the Technology median on average. Valuation score: 3.0 out of 10 (median for Technology: 5.3). Average analyst target: 141.57 USD, +27.0% versus the price. This is not investment advice.
What score does Rambus get on MeridIAn Screener?
It scores 5.3 out of 10, rank 1,546 of 2,130 (better than 26% of the companies analysed). Its strongest category is Financial health (8.8) and its weakest, Momentum (1.4). Analysis of 08/10/2026.
What is Rambus's P/E ratio?
Its P/E is 51.1: the share price equals 51.1 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 29.6.
How much is Rambus worth on the stock market?
Its market capitalisation is 12.1B USD and its enterprise value, debt included, is 11.3B USD.
How much debt does Rambus have?
It has more cash than debt: net cash of 803.1M USD.
Does Rambus pay a dividend?
It pays no dividend, or almost none.
How has Rambus stock performed over the last year?
It has risen 24.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 77.89 and 174.10 USD. Past performance does not guarantee future results.
What do analysts think of Rambus?
7 analysts cover it; their average recommendation is “Strong buy” and their average target is 141.57 USD (+27.0% versus the price). It is an estimate, not market data.