The fair value of Arm Holdings plc American Depositary Shares (ARM) is $45.25. The current price ($116.52) indicates stock is overvalued by 61.17%.
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,670 M
Debt : $271 M
EBITDA : $600 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Semiconductors
Based on sector, 5 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 64.38
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $761 M
Average Revenue: $2,661 M
Free Cash Flow to Revenue : 29 %
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Error: This stock does not have 5 years of revenue data.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-03-31): $1,044 M
Share Count 5 Years Ago (2016-03-31): $1,420 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $1.81
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 11%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $117
52-Week Low: $80
Threshold Price (15% Above 52-Week Low): $92
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $129,927 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Arm Holdings plc American Depositary Shares (ARM) stock.
Value-Trades has assined P/E value 25. Since current year earning per share is $1.81.
The fair value of Arm Holdings plc American Depositary Shares (ARM) stock should be (25 x $1.81) = $45.25
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