Arm Holdings Valuation
| ARM Stock | 133.37 3.35 2.45% |
At this time, the firm appears to be overvalued. Arm Holdings plc shows a prevailing Real Value of USD92.57 per share. The current price of the firm is USD133.37. Our model approximates the value of Arm Holdings plc from analyzing the firm fundamentals such as Current Valuation of 141.6 B, return on equity of 0.12, and Profit Margin of 0.18 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Arm Holdings' valuation include:
Price Book 23.901 | Enterprise Value 141.6 B | Enterprise Value Ebitda 246.2569 | Price Sales 40.6486 | Forward PE 90.0901 |
Overvalued
Today
Please note that Arm Holdings' price fluctuation is very steady at this time. Calculation of the real value of Arm Holdings plc is based on 3 months time horizon. Increasing Arm Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Arm stock is determined by what a typical buyer is willing to pay for full or partial control of Arm Holdings plc. Since Arm Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Arm Stock. However, Arm Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 133.37 | Real 92.57 | Target 70.53 | Hype 133.27 | Naive 142.07 |
The intrinsic value of Arm Holdings' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Arm Holdings' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Arm Holdings plc helps investors to forecast how Arm stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Arm Holdings more accurately as focusing exclusively on Arm Holdings' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Arm Holdings' intrinsic value based on its ongoing forecasts of Arm Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Arm Holdings' closest peers.
Arm Holdings Cash |
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Arm Valuation Trend
Knowing Arm Holdings' actual value is paramount for traders when making sound investment determinations. Using both Arm Holdings' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Arm Holdings Total Value Analysis
Arm Holdings plc is presently projected to have company total value of 141.6 B with market capitalization of 143.69 B, debt of 226 M, and cash on hands of . Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Arm Holdings fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
141.6 B | 143.69 B | 226 M |
Arm Holdings Investor Information
About 88.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.69. Arm Holdings plc had not issued any dividends in recent years. Based on the key indicators related to Arm Holdings' liquidity, profitability, solvency, and operating efficiency, Arm Holdings plc may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0326 | 0.0343 |
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| Total Cash From Operating Activities | 704 M | 1.1 B |
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| Operating Income | 105.5 M | 111 M |
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Arm Holdings Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Arm Holdings has an asset utilization ratio of 40.78 percent. This suggests that the Company is making USD0.41 for each dollar of assets. An increasing asset utilization means that Arm Holdings plc is more efficient with each dollar of assets it utilizes for everyday operations.Arm Holdings Ownership Allocation
Arm Holdings holds a total of 1.05 Billion outstanding shares. Arm Holdings plc shows majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company's outstanding shares. 87.8 percent of Arm Holdings plc outstanding shares that are owned by insiders signifies that they have been buying or selling the stock in recent months in anticipation of some upcoming event. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Arm Holdings Profitability Analysis
The company reported the last year's revenue of 3.23 B. Total Income to common stockholders was 306 M with profit before taxes, overhead, and interest of 2.57 B.About Arm Holdings Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Arm Holdings plc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Arm Holdings plc based exclusively on its fundamental and basic technical indicators. By analyzing Arm Holdings's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Arm Holdings's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Arm Holdings. We calculate exposure to Arm Holdings's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Arm Holdings's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3 B | 2.8 B | |
| Pretax Profit Margin | 0.07 | 0.06 | |
| Operating Profit Margin | 0.03 | 0.03 | |
| Net Profit Margin | 0.09 | 0.19 | |
| Gross Profit Margin | 0.93 | 0.75 |
Arm Holdings Quarterly Retained Earnings |
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Arm Holdings Growth Indicators
Investing in growth stocks can be very risky. If the company such as Arm Holdings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1 B | |
| Quarterly Earnings Growth Y O Y | 1.1 | |
| Forward Price Earnings | 90.0901 |
Arm Holdings Current Valuation Indicators
Arm Holdings' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Arm Holdings' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Arm Holdings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Arm Holdings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Arm Holdings' worth.When determining whether Arm Holdings plc is a strong investment it is important to analyze Arm Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Arm Holdings' future performance. For an informed investment choice regarding Arm Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arm Holdings plc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arm Holdings. If investors know Arm will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arm Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.1 | Earnings Share 0.6 | Revenue Per Share 3.404 | Quarterly Revenue Growth 0.047 | Return On Assets 0.0308 |
The market value of Arm Holdings plc is measured differently than its book value, which is the value of Arm that is recorded on the company's balance sheet. Investors also form their own opinion of Arm Holdings' value that differs from its market value or its book value, called intrinsic value, which is Arm Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arm Holdings' market value can be influenced by many factors that don't directly affect Arm Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Arm Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arm Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arm Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.