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ARM Holdings (ARM Holdings) PB Ratio : 21.79 (As of May. 08, 2024)


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What is ARM Holdings PB Ratio?

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-05-08), ARM Holdings's share price is $106.07. ARM Holdings's Book Value per Share for the quarter that ended in Dec. 2023 was $4.87. Hence, ARM Holdings's PB Ratio of today is 21.79.

The historical rank and industry rank for ARM Holdings's PB Ratio or its related term are showing as below:

ARM' s PB Ratio Range Over the Past 10 Years
Min: 10.28   Med: 15.26   Max: 29.1
Current: 22.15

During the past 3 years, ARM Holdings's highest PB Ratio was 29.10. The lowest was 10.28. And the median was 15.26.

ARM's PB Ratio is ranked worse than
97.42% of 970 companies
in the Semiconductors industry
Industry Median: 2.42 vs ARM: 22.15

During the past 3 years, the average Book Value Per Share Growth Rate was 21.00% per year.

During the past 3 years, the highest 3-Year average Book Value Per Share Growth Rate of ARM Holdings was 99.40% per year. The lowest was -2.40% per year. And the median was 16.90% per year.

Back to Basics: PB Ratio

ARM Holdings PB Ratio Historical Data

The historical data trend for ARM Holdings's PB Ratio 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 PB Ratio Chart

ARM Holdings Annual Data
Trend Mar21 Mar22 Mar23
PB Ratio
- - -

ARM Holdings Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PB Ratio Get a 7-Day Free Trial Premium Member Only - - - 11.49 15.44

Competitive Comparison of ARM Holdings's PB Ratio

For the Semiconductors subindustry, ARM Holdings's PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's PB Ratio distribution charts can be found below:

* The bar in red indicates where ARM Holdings's PB Ratio falls into.


ARM Holdings PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

ARM Holdings's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Dec. 2023)
=106.07/4.867
=21.79

* 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.

It can also be calculated from the numbers for the whole company:

PB Ratio=Market Cap /(Total Stockholders Equity-Preferred Stock)

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.

ARM Holdings  (NAS:ARM) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.

Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.

ARM Holdings PB Ratio Related Terms

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ARM Holdings (ARM Holdings) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ARM Holdings PLC (NAS:ARM) » Definitions » PB Ratio
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Traded in Other Exchanges
ARM:Mexico O9T:Germany O9T:Germany O9T:Germany
Address
110 Fulbourn Road, Cambridge, GBR, CB1 9NJ
Website
https://www.arm.com
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.