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Rambus Inc (RMBS) stock analysis

RMBSNasdaqSemiconductors & Related DevicesFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Oct 26, 2026Score 12/300% below fair value
$85.36+4.60 (+5.70%)

Close on Nov 11, 2026Market cap $9.14BP/E 35.1Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value3Growth2Performance4Health3Dividend0

Mixed12 of 30 checks passed

Rambus passes 12 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
3/6
Growth
2/6
Past performance
4/6
Financial health
3/6
Dividend
0/6

What stands out

  • Trading below fair value

    The share price of $85.36 is below our fair value estimate of $85.65.

  • Return on capital over 10%

    Return on invested capital was 38.7%, above the 10% that usually covers the cost of capital.

  • Revenue growing 10%+ a year

    Revenue grew 15.9% a year over the last three fiscal years.

  • Interest well covered

    Operating income covers interest expense 244.9 times.

What to watch

  • Margin of safety under 20%

    The price is 0.3% below fair value, less than the 20% cushion we look for.

  • Return on equity under 15%

    Return on equity was 19.6% over the last twelve months and averaged 14.5% over five years; we look for 15% on both.

  • P/E above the industry

    Rambus's P/E of 35.1 is above the Electronic Components and Accessories median of 34.8.

  • P/B above the industry

    Rambus's price-to-book of 6.45 is above the Electronic Components and Accessories median of 3.49.

Valuation3/6

  • P/E below its 5-year median

    Rambus's P/E of 35.1 is below its own 5-year median of 35.8.

  • P/E above the industry

    Rambus's P/E of 35.1 is above the Electronic Components and Accessories median of 34.8.

  • EV/EBITDA below its 5-year median

    Rambus's EV/EBITDA of 27.8 is below its 5-year median of 41.8.

  • P/B above the industry

    Rambus's price-to-book of 6.45 is above the Electronic Components and Accessories median of 3.49.

  • Trading below fair value

    The share price of $85.36 is below our fair value estimate of $85.65.

  • Margin of safety under 20%

    The price is 0.3% below fair value, less than the 20% cushion we look for.

Growth2/6

  • Revenue growing 10%+ a year

    Revenue grew 15.9% a year over the last three fiscal years.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew 17.3% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

  • Guidance raised

    Rambus raised its third quarter of 2026 GAAP operating costs and expenses outlook on Jul 27, 2026.

  • Gross margin slipping

    Gross margin was 79.1% over the last twelve months, against 80.0% a year earlier.

Past performance4/6

  • Return on equity under 15%

    Return on equity was 19.6% over the last twelve months and averaged 14.5% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 38.7%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Rambus's return on equity of 19.6% is above the Electronic Components and Accessories median of 4.8%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was 33.4% over the last twelve months, against a 5-year average of 27.9%.

  • Net margin above the industry

    Rambus's net margin of 33.4% is above the Electronic Components and Accessories median of 2.9%.

Financial health3/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt coverage

    Needs operating cash flow.

  • Interest well covered

    Operating income covers interest expense 244.9 times.

  • Short-term assets cover short-term debts

    Current assets are 9.38 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 41.14; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Rambus has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$85.65

The share price is 0% below this estimate.

20%+ below
Near fair value
20%+ above
$85.36Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E35.3×35.8×34.8×$85.8547%
EV/EBITDA30.0×41.8×21.3×$91.6141%
P/B4.8×6.2×3.5×$64.0112%
Earnings powerleft out, too far from the others13.6% cost of equity––$17.22–
Fair value$85.65100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 35.8
  • Electronic Components and Accessories median 34.8

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$167.75M
Value traded per 1% price move
$52.81M

Downside

High risk

Typical loss in a bad month
31.0%
Volatility (annualized)
80%
Sharpe ratio, 1 year
-0.34
Beta to the S&P 500 (5Y)
1.75

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

79.6%+4.3 pts over 5 years

Operating margin

36.8%+54.7 pts over 5 years

Net margin

32.6%+49.0 pts over 5 years

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