EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, ARM Holdings's enterprise value is $112,098 Mil.
ARM Holdings's EBITDA for the trailing twelve months (TTM) ended in Mar. 2024 was $279 Mil. Therefore, ARM Holdings's EV-to-EBITDA for today is 401.79.
The historical rank and industry rank for ARM Holdings's EV-to-EBITDA or its related term are showing as below:
ARM'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 76.78 Med: 331.91 Max: 696.99
Current: 401.79
During the past 4 years, the highest EV-to-EBITDA of ARM Holdings was 696.99. The lowest was 76.78. And the median was 331.91.
ARM's EV-to-EBITDA is ranked worse than 98.24% of 740
companies
in the Semiconductors industry
Industry Median: 19.18
vs ARM: 401.79
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. 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.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio.
ARM Holdings EV-to-EBITDA Historical Data
The historical data trend for ARM Holdings's EV-to-EBITDA 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.
Competitive Comparison of ARM Holdings's EV-to-EBITDA
For the Semiconductors subindustry, ARM Holdings's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where ARM Holdings's EV-to-EBITDA falls into.
ARM Holdings EV-to-EBITDA Calculation
ARM Holdings's EV-to-EBITDA for today is calculated as:
ARM Holdings's current Enterprise Value is $112,098 Mil.
ARM Holdings's EBITDA for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $279 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-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. 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:
ARM Holdings's share price for today is $110.46.
ARM Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.282.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio.
Thank you for viewing the detailed overview of ARM Holdings's EV-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.
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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