Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, ARM Holdings's Enterprise Value is $140,511 Mil.
ARM Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 was $117 Mil. Therefore, ARM Holdings's EV-to-EBIT ratio for today is 1,200.95.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, ARM Holdings's Enterprise Value is $140,511 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 ratio for today is 503.62.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, ARM Holdings's Enterprise Value is $140,511 Mil.
ARM Holdings's Revenue for the trailing twelve months (TTM) ended in Mar. 2024 was $3,233 Mil. Therefore, ARM Holdings's EV-to-Revenue ratio for today is 43.46.
ARM Holdings Enterprise Value Historical Data
The historical data trend for ARM Holdings's Enterprise Value 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 Enterprise Value
For the Semiconductors subindustry, ARM Holdings's Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Enterprise Value distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Enterprise Value falls into.
ARM Holdings Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
ARM Holdings's Enterprise Value for the fiscal year that ended in Mar. 2024 is calculated as
* 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) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
ARM Holdings's current Enterprise Value is $140,511 Mil.
ARM Holdings's EBIT 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 $117 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
ARM Holdings's current Enterprise Value is $140,511 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.
ARM Holdings's current Enterprise Value is $140,511 Mil.
ARM Holdings's Revenue 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 $3,233 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 Enterprise Value Related Terms
Thank you for viewing the detailed overview of ARM Holdings's Enterprise Value 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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