Arteris, Inc. (AIP)
Market price: $21.43
2 valuation methods
- EV / Gross Profit: $10.70 to $18.84 (midpoint $14.00)
- EV / Revenue: $13.43 to $21.37 (midpoint $17.26)
How each method works
EV / Gross Profit: $10.70 to $18.84 (midpoint $14.00)
Values the business at a peer multiple of gross profit — useful where reported operating costs vary a lot across peers but gross economics are comparable.
- How it’s calculated
- We take last-twelve-month gross profit (revenue minus the direct cost of the goods or services sold), multiply it by the peer range of EV/Gross-Profit multiples, subtract net debt and any minority interests or preferred stock ranking ahead of common shareholders, and divide by shares outstanding.
- Why it fits this industry
- Gross profit sits between revenue and operating earnings: it credits the margin a company's products earn while ignoring overhead and investment choices that legitimately differ across peers.
- Reading this bar
- The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together.
EV / Gross Profit = (5.54/7.73/10.95)× gross_profit 74,131,000 ≈ 411,037,734.63/573,131,704.14/811,381,681.38 (enterprise_value); enterprise_value -> per share: equity (525,873,734.63/687,967,704.14/926,217,681.38) / 49,152,102 shares [EV bridge: minus net debt -114,836,000]
EV / Revenue: $13.43 to $21.37 (midpoint $17.26)
Values the whole business at a peer multiple of sales — used when earnings are thin, volatile, or not yet meaningful, so revenue is the most reliable yardstick.
- How it’s calculated
- We multiply the company's last-twelve-month revenue by the range of EV/Revenue multiples its peer group trades at, subtract net debt and any minority interests or preferred stock ranking ahead of common shareholders, and divide by shares outstanding for a per-share range.
- Why it fits this industry
- When profits are thin, volatile, or still to come, revenue is the most dependable figure a company reports — this method values the business on the scale of what it actually sells.
- Reading this bar
- The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. A pound of revenue is worth more at a high margin than a low one, so the peer group here is narrowed to companies earning a similar margin wherever enough of them exist. Where too few do, the bar falls back to the wider group and is the bluntest of the multiples — weigh it alongside the earnings-based bars.
EV / Revenue = (6.44/8.67/11.06)× revenue 84,615,000 ≈ 545,209,502.36/733,456,680.51/935,431,765.49 (enterprise_value); enterprise_value -> per share: equity (660,045,502.36/848,292,680.51/1,050,267,765.49) / 49,152,102 shares [EV bridge: minus net debt -114,836,000]
6 methods not shown
- EV / EBITDA: EBITDA is non-positive — an EBITDA multiple yields no meaningful enterprise value (loss-making at the EBITDA line)
- P / E: diluted EPS is non-positive — P/E is not meaningful for a loss-making period
- P / B: the market prices this company far outside its sector's P / B range (its own multiple is 15.56 vs a sector band of 1.43–4.13) — a sector-average bar would be misleading here, so it is withheld
- DCF (FCFF): base unlevered FCF is non-positive (-38,191,224.20) — nothing to discount; a standard FCFF DCF does not apply
- EV / EBITDA — mid-cycle: mid-cycle (5-year average) EBITDA is non-positive — the multiple is not meaningful across a cycle of losses
- P / E — mid-cycle: mid-cycle (5-year average) earnings are non-positive — P/E is not meaningful for a company that has lost money across the cycle
Pre-profit company — earnings-based methods not meaningful.
Limited data — fewer than three valuation methods could be formed for this company; showing every method we can stand behind.