Arm Holdings Plc Stock Current Valuation
| ARM Stock | 135.99 2.85 2.14% |
Valuation analysis of Arm Holdings plc helps investors to measure Arm Holdings' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At this time, Arm Holdings' Enterprise Value Over EBITDA is very stable compared to the past year. As of the 25th of November 2024, Enterprise Value Multiple is likely to grow to 361.31, while Enterprise Value is likely to drop about 103 B. Fundamental drivers impacting Arm Holdings' valuation include:
Price Book 23.7734 | Enterprise Value 140.8 B | Enterprise Value Ebitda 244.9226 | Price Sales 40.4315 | Forward PE 89.2857 |
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 135.99 | Real 93.11 | Target 70.53 | Hype 135.81 | Naive 135.61 |
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: Arm Holdings plc Company Current Valuation Analysis
Arm Holdings' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Arm Holdings Current Valuation | 140.83 B |
Most of Arm Holdings' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Arm Holdings plc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Arm Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Arm Holdings is extremely important. It helps to project a fair market value of Arm Stock properly, considering its historical fundamentals such as Current Valuation. Since Arm Holdings' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Arm Holdings' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Arm Holdings' interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Arm Holdings plc has a Current Valuation of 140.83 B. This is much higher than that of the Semiconductors & Semiconductor Equipment sector and significantly higher than that of the Information Technology industry. The current valuation for all United States stocks is significantly lower than that of the firm.
Arm Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Arm Holdings' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Arm Holdings could also be used in its relative valuation, which is a method of valuing Arm Holdings by comparing valuation metrics of similar companies.Arm Holdings is currently under evaluation in current valuation category among its peers.
Arm Holdings ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Arm Holdings' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Arm Holdings' managers, analysts, and investors.Environmental | Governance | Social |
Arm Fundamentals
| Return On Equity | 0.12 | ||||
| Return On Asset | 0.0308 | ||||
| Profit Margin | 0.18 % | ||||
| Operating Margin | 0.08 % | ||||
| Current Valuation | 140.83 B | ||||
| Shares Outstanding | 1.05 B | ||||
| Shares Owned By Insiders | 87.80 % | ||||
| Shares Owned By Institutions | 6.34 % | ||||
| Number Of Shares Shorted | 14.47 M | ||||
| Price To Book | 23.77 X | ||||
| Price To Sales | 40.43 X | ||||
| Revenue | 3.23 B | ||||
| Gross Profit | 2.57 B | ||||
| EBITDA | 374 M | ||||
| Net Income | 306 M | ||||
| Total Debt | 226 M | ||||
| Book Value Per Share | 5.72 X | ||||
| Cash Flow From Operations | 1.09 B | ||||
| Short Ratio | 2.75 X | ||||
| Earnings Per Share | 0.60 X | ||||
| Price To Earnings To Growth | 1.68 X | ||||
| Target Price | 144.95 | ||||
| Number Of Employees | 7.1 K | ||||
| Market Capitalization | 142.93 B | ||||
| Total Asset | 7.93 B | ||||
| Retained Earnings | 2.75 B | ||||
| Working Capital | 2.69 B | ||||
| Net Asset | 7.93 B |
About Arm Holdings Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Arm Holdings plc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Arm Holdings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Arm Holdings plc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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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.