Arm Holdings is a UK-based semiconductor design company founded in 1990 as Advanced RISC Machines Ltd, by Jamie Urquhart, Mike Muller, Tudor Brown, Lee Smith, John Biggs, Harry Oldham, Dave Howard, Pete Harrod, Harry Meekings, Al Thomas, Andy Merritt and David Seal. Arm architects, develops and licenses central processing unit (CPU), graphic processing unit (GPU) and neural processing unit (NPU) products and related technologies for semiconductor companies and original equipment manufacturers (OEMs). Japanese investment holding company, SoftBank, acquired Arm in 2016 and took the company private after nearly 20 years as a public company. Arm once again went public on September 14, 2023. According to Arm, it’s shipped more than 250 billion Arm-based chips since its inception. The company also announced on September 5, 2023, that it had entered into a new long-term agreement with Apple Inc. The partnership gives Apple access to the Arm architecture, which it uses in its iPhone and Mac chips, beyond 2040.
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| Latest market close | $136.35 |
|---|---|
| 52-week range | $55.27 - $188.75 |
| 50-day moving average | $143.37 |
| 200-day moving average | $133.46 |
| Wall St. target price | $143.95 |
| PE ratio | 227.25 |
| Dividend yield | N/A |
| Earnings per share (TTM) | $0.60 |
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Historical closes compared with the close of $135.09 from 2024-11-13
| 1 week (2024-11-08) | -8.40% |
|---|---|
| 1 month (2024-10-15) | -10.34% |
| 3 months (2024-08-15) | 3.56% |
| 6 months (2024-05-15) | 18.84% |
| 1 year (2023-11-15) | 143.71% |
|---|---|
| 2 years (2022-11-12) | N/A |
| 3 years (2021-11-12) | N/A |
| 5 years (2019-11-12) | N/A |
Valuing Arm stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Arm's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Arm's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 227x. In other words, Arm shares trade at around 227x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Arm's P/E ratio is best considered in relation to those of others within the semiconductors industry or those of similar companies.
Arm's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.6893. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Arm's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Arm's PEG ratio in relation to those of similar companies.
Arm's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $520 million.
The EBITDA is a measure of a Arm's overall financial performance and is widely used to measure a its profitability.
To put Arm's EBITDA into context you can compare it against that of similar companies.
| Revenue TTM | $3.5 billion |
|---|---|
| Operating margin TTM | 7.58% |
| Gross profit TTM | $2.6 billion |
| Return on assets TTM | 3.08% |
| Return on equity TTM | 11.89% |
| Profit margin | 18.13% |
| Book value | $5.72 |
| Market Capitalization | $143.3 billion |
TTM: trailing 12 months
We're not expecting Arm to pay a dividend over the next 12 months.
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Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. The company is involved in the licensing, marketing, research, and development of microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. It also offers system IP products, including memory controller IP, interconnect IP, and other on-chip peripheral components; and compute platforms for a range of devices and applications. The company's products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. It operates in the United States, the People's Republic of China, Taiwan, the Republic of Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.
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