As of today (2024-05-20), ARM Holdings's share price is $110.46.
ARM Holdings's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $0.90. Hence, ARM Holdings's Price-to-Free-Cash-Flow Ratio for today is 122.73.
The historical rank and industry rank for ARM Holdings's Price-to-Free-Cash-Flow or its related term are showing as below:
ARM'
s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 54.46 Med: 95.53 Max: 191.9
Current: 122.74
During the past 4 years, ARM Holdings's highest Price-to-Free-Cash-Flow Ratio was 191.90. The lowest was 54.46. And the median was 95.53.
ARM's Price-to-Free-Cash-Flow is ranked worse than 84.57% of 486
companies
in the Semiconductors industry
Industry Median: 29.955
vs ARM: 122.74
During the past 12 months, the average Free Cash Flow per Share Growth Rate of ARM Holdings was 44.00% per year.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was -4.50% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was 12.80% per year.
During the past 10 years, the average Free Cash Flow per Share Growth Rate was 22.50% per year.
During the past 4 years, ARM Holdings's highest 3-Year average Free Cash Flow per Share Growth Rate was -4.50% per year. The lowest was -4.50% per year. And the median was -4.50% per year.
ARM Holdings Price-to-Free-Cash-Flow Historical Data
The historical data trend for ARM Holdings's Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow
For the Semiconductors subindustry, ARM Holdings's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Price-to-Free-Cash-Flow distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Price-to-Free-Cash-Flow falls into.
ARM Holdings Price-to-Free-Cash-Flow Calculation
ARM Holdings's Price-to-Free-Cash-Flow ratio for today is calculated as
ARM Holdings's Share Price of today is $110.46. ARM Holdings's Free Cash Flow per Share 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 $0.90.
* 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.
It can also be calculated from the numbers for the whole company:
ARM Holdings (NAS:ARM) Price-to-Free-Cash-Flow Explanation
Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.
In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.
Be Aware
In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management's decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.
ARM Holdings Price-to-Free-Cash-Flow Related Terms
Thank you for viewing the detailed overview of ARM Holdings's Price-to-Free-Cash-Flow 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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