| Intrinsic Valuation of: ARM | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 1 | Market Cap | $166B | |||||
| 2021 | - | - (-) | P/E Ratio | 211 | Total Asset | $9B | |||||
| 2022 | $383M | - (-) | Net Income | $792M | Total Debt | $0 | |||||
| 2023 | $646M | 68.7% (70.2%) | EBITDA | $1B | Total Liab | $2B | |||||
| 2024 | $947M | 46.6% (21.5%) | Opr Margin | 0.21 | Debt/Equity | - | |||||
| 2025 | $158M | -83.3% (-86.5%) | PreTax Margin | 20.74 | BV/Share | 5 | |||||
| 5Y Average FCF | $534M | 10.6% (1.7%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (10.6%) | ||||||||||
| 2026 | $175M | MBG Intrinsic Value | $7 | ||||||||
| 2027 | $193M | ||||||||||
| 2028 | $214M | ||||||||||
| 2029 | $237M | ||||||||||
| 2030 | $262M | ||||||||||
| 2031 | $290M | ||||||||||
| Terminal Value | $6B | Net Worth/Share | $6 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $5B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $2B | $7 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $0 | WACC | 7.3% | 6 | 6 | 7 | 7 | 8 | |||
| Equity Value | $7B | 7.4% | 6 | 6 | 7 | 7 | 8 | ||||
| Shares Outstanding | 1,059,260,032 | 7.4% | 6 | 6 | 7 | 7 | 8 | ||||
| 7.9% | 6 | 6 | 6 | 7 | 7 | ||||||
| DCF Intrinsic Value | $7 | 8.4% | 5 | 6 | 6 | 6 | 6 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||