ARM

$122.09

Public overview and default valuation.

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Valuation Details
Default assumptions: 10Y forecast, 9% market return, 2.5% terminal growth, 10.00% trendline growth.
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$14.96

With 20% Margin of Safety (MoS):

$11.97
-90.20% downside
Capital Efficiency
Average Quarterly ROIC
4.56%
Cost of Capital (estimated)7%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.
Fundamental Score
23
BearishWeighted across 6 signals
DCF Discount
90.2% premium to price
0
FCF Yield
1.6% trailing FCF yield
0
ROIC vs WACC
ROIC 4.6% vs WACC 7.0% (0.7x)
33
Net Debt / FCF
Net cash position
100
Buybacks
Share count flat
50
FCF CAGR (5Y)
0.0% 5Y FCF CAGR
0
Strengths: Net Debt / FCF. Concerns: DCF Discount, FCF Yield.
Narrative Score
59
Weak
Weighted across 6 recent drivers · Last 30 days+13 vs previous · +3 new driversVs 6-Month Baseline: High (100th pct)
Trend: Improving upConfidence: 100%Updated: 3h ago
Sources: 89 (News 72 · Analyst 17)
Drivers
2 earnings beat+1.1
55 news sentiment-0.8
10 regulatory scrutiny+0.5
Earnings miss+0.2
2 upgrade headlines-0.1
Analyst upgrades+0.1
Other Metrics
P/E161.9
Profit Margin17.1%
Owner Earnings$1.58b
One Dollar Premise0.00%
Debt/Equity0.32
Current Ratio5.30
PEG-42.087
Free Cash Flow (in millions)
20212022202320242025
$1,398$533$832$1,233$2,074
How Intrinziq Estimates Fair Value

Intrinziq estimates Arm Holdings plc American Depositary Shares's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Arm Holdings plc American Depositary SharesTechnology

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. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South 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.

Last updated: Feb 06, 2026
Data sources: Financial Modeling Prep
This valuation is based on assumptions and publicly available data. It is not financial advice or a recommendation to buy or sell any security. Always do your own research before making investment decisions.
Arm Holdings plc American Depositary Shares (ARM) Intrinsic Value & DCF Valuation | Intrinziq