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 $223B
2021 - - (-) P/E Ratio 243 Total Asset $9B
2022 $383M - (-) Net Income - Total Debt $0
2023 $646M 68.7% (70.2%) EBITDA - Total Liab $2B
2024 $947M 46.6% (21.5%) Opr Margin - Debt/Equity -
2025 $158M -83.3% (-86.5%) PreTax Margin - BV/Share 5
5Y Average FCF $534M 13.0% (1.7%)
Overall Market Assumptions:
Assumptions: P/E for No-Growth Company: 7.0
Perpetual Growth Rate (g): 2.48% Historical US Bond Yield: 4.40%
Discount Rate (WACC): 14.00% Current US Bond Yield: 3.48%
Forcasting Future Free Cash Flow for next 6Y Modified Benjamin Graham's Intrinsic Value
Year FCF Projection (13.0%)
2026 $306M MBG Intrinsic Value $8
2027 $339M
2028 $369M
2029 $394M
2030 $412M
2031 $422M
Terminal Value $4B Net Worth/Share $6
DCF Valuation DCF Valuation "What If" Scenario Table
Enterprise Value $3B Growth Rate
(+) Cash & Cash Equivalents $2B $5 1.5% 2.0% 2.5% 3.0% 3.5%
(-) Total Debt $0 WACC 12.0% 5 5 6 6 6
Equity Value $5B 12.5% 5 5 5 5 6
Shares Outstanding 1,063,998,569 13.0% 5 5 5 5 5
13.5% 5 5 5 5 5
DCF Intrinsic Value $5 14.0% 5 5 5 5 5
Analyzed by QuantJuice (2025)