ARM Holdings (FRA:O9T) Margin of Safety % (DCF Earnings Based) : -295.89% (As of Jun. 09, 2024)

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What is ARM Holdings Margin of Safety % (DCF Earnings Based)?

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2024-06-09), ARM Holdings's Predictability Rank is 4.5-Stars. ARM Holdings's intrinsic value calculated from the Discounted Earnings model is €32.13 and current share price is €127.20. Consequently,

ARM Holdings's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -295.89%.

Competitive Comparison of ARM Holdings's Margin of Safety % (DCF Earnings Based)

For the Semiconductors subindustry, ARM Holdings's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where ARM Holdings's Margin of Safety % (DCF Earnings Based) falls into.

ARM Holdings Margin of Safety % (DCF Earnings Based) Calculation

ARM Holdings's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)	=	(Intrinsic Value: DCF (Earnings Based)	-	Current Price)	/	Intrinsic Value: DCF (Earnings Based)
	=	(32.13	-	127.20)	/	32.13
	=	-295.89 %

* 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.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

ARM Holdings Margin of Safety % (DCF Earnings Based) Related Terms

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ARM Holdings (FRA:O9T) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ARM Holdings PLC (FRA:O9T) » Definitions » Margin of Safety % (DCF Earnings Based)

Comparable Companies

Traded in Other Exchanges

ARM:USA ARM:Mexico

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.

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