ARM Arm Holdings plc

Quality Score 94.6

Arm is the foundational IP licensor (S-P2) for the semiconductor industry, providing the energy-efficient architecture that dominates mobile computing, automotive, and increasingly, data center custom silicon. The business model is a high-margin, recurring royalty stream.

Arm operates as a monopolistic toll collector essential to the global compute transition. The structural moat is validated by the exceptional **97.39% TTM Gross Margin** and hyper-efficient operation, resulting in a **Rule of 40 of 60.27**. We favor the stock due to the **60.88% R&D intensity**, which secures its dominance against open-source threats, positioning Arm as the non-negotiable architecture for energy-efficient AI inference at the edge and custom silicon projects within hyperscale infrastructure.

Links: IP licensed by AAPL, QCOM, NVDA, AMD. Infrastructure designs used by AMZN, GOOGL, MSFT, and META for custom silicon projects. Primary architecture competitor is RISC-V.

Financial Statistics

Market Cap None
PE Ratio (TTM) None
Revenue (TTM) None
Profit Margin None
52 Week High None
52 Week Low None
Price 136.15
Price Projection
Current --
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Quarterly Revenue & Net Income

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Cash Flow

πŸ’° Valuation Playground

πŸš€ Revenue Growth (5Y Avg) 10%
-10% | 50%
πŸ’° FCF Margin Trajectory (5Y) % β†’ %
Now Y1 Y2 Y3 Y4 Y5
⚠️ Discount Rate (WACC) 9%
5% | 15%
$0
Fair Value
Current Price $0
Fair Value 0%

What do you have to believe?

Sensitivity Matrix

Growth vs Discount Rate

12% 9% 7%
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β–  Undervalued β–  Overvalued

Terminal Growth 2.5% perpetual
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News & Sentiment

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SEC Filings

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