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ARM Holdings (ARM Holdings) EV-to-FCF : 142.57 (As of May. 08, 2024)


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What is ARM Holdings EV-to-FCF?

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, ARM Holdings's Enterprise Value is $108,641 Mil. ARM Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 was $762 Mil. Therefore, ARM Holdings's EV-to-FCF for today is 142.57.

The historical rank and industry rank for ARM Holdings's EV-to-FCF or its related term are showing as below:

ARM' s EV-to-FCF Range Over the Past 10 Years
Min: 52.26   Med: 93.5   Max: 192.08
Current: 141.48

During the past 3 years, the highest EV-to-FCF of ARM Holdings was 192.08. The lowest was 52.26. And the median was 93.50.

ARM's EV-to-FCF is ranked worse than
89.63% of 482 companies
in the Semiconductors industry
Industry Median: 27.315 vs ARM: 141.48

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

As of today (2024-05-08), ARM Holdings's stock price is $107.8499. ARM Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $0.075. Therefore, ARM Holdings's PE Ratio for today is 1,438.00.


ARM Holdings EV-to-FCF Historical Data

The historical data trend for ARM Holdings's EV-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ARM Holdings EV-to-FCF Chart

ARM Holdings Annual Data
Trend Mar21 Mar22 Mar23
EV-to-FCF
- - -

ARM Holdings Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EV-to-FCF Get a 7-Day Free Trial Premium Member Only - - - 58.69 98.53

Competitive Comparison of ARM Holdings's EV-to-FCF

For the Semiconductors subindustry, ARM Holdings's EV-to-FCF, along with its competitors' market caps and EV-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ARM Holdings's EV-to-FCF Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's EV-to-FCF distribution charts can be found below:

* The bar in red indicates where ARM Holdings's EV-to-FCF falls into.



ARM Holdings EV-to-FCF Calculation

ARM Holdings's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=108641.242/762
=142.57

ARM Holdings's current Enterprise Value is $108,641 Mil.
ARM Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $762 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


ARM Holdings  (NAS:ARM) EV-to-FCF Explanation

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

ARM Holdings's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=107.8499/0.075
=1,438.00

ARM Holdings's share price for today is $107.8499.
ARM Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.075.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.


ARM Holdings EV-to-FCF Related Terms

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ARM Holdings (ARM Holdings) Business Description

Traded in Other Exchanges
Address
110 Fulbourn Road, Cambridge, GBR, CB1 9NJ
Arm Holdings is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.