Arm Holdings plc American Depositary Shares (ARM) DCF Valuation
A discounted-cash-flow model values Arm Holdings plc American Depositary Shares (ARM) at about $13.14 (TGM base case). Today's price of $324.86 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Current Price
$324.86
Fair-Value Range
$13.14
Market-Implied Growth
—
ARM DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $687.5M · 1.06B shares · net cash $2.7B
Estimated Fair Value
$13.14
-96.0% vs $324.86
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $324.86; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $15.71 | $16.39 | $17.19 | $18.14 | $19.31 |
| 9.0% | $13.86 | $14.32 | $14.85 | $15.47 | $16.21 |
| 10.0% | $12.44 | $12.77 | $13.14 | $13.57 | $14.06 |
| 11.0% | $11.33 | $11.57 | $11.84 | $12.14 | $12.48 |
| 12.0% | $10.43 | $10.61 | $10.81 | $11.04 | $11.28 |
About Arm Holdings plc American Depositary Shares
Arm Holdings plc is a leading technology firm that conceptualizes, engineers, and licenses core processing unit (CPU) designs and complementary technologies. These foundational innovations are crucial for semiconductor manufacturers and original equipment manufacturers (OEMs) to develop their own products. The company's diverse portfolio encompasses microprocessors, comprehensive system intellectual property (IP) solutions, graphics processing units (GPUs), physical IP alongside its associated system IPs, various software offerings, development tools, and an array of supplementary services. Its technology underpins a wide spectrum of industries, including the automotive sector, advanced computing infrastructure, consumer electronics, and the burgeoning Internet of Things (IoT) landscape. Established in 1990, Arm Holdings plc maintains its corporate headquarters in Cambridge, United Kingdom. With a significant global footprint, Arm conducts operations across the United States, the People's Republic of China, Taiwan, South Korea, and numerous other international regions. Currently, Arm Holdings plc functions as a subsidiary entity of Kronos II LLC.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Rene Anthony Andrada Haas