Amid the topmost stocks in today’s market is ARM Holdings plc (NASDAQ:ARMH). ARM Holdings plc had a market cap of 21763.02, indicating that it has a good hold on the market value of the shares outstanding. The current market cap of ARM Holdings plc exhibits the basic determinant of asset allocation and risk-return parameters for its stocks.
The P/E of ARM Holdings plc is currently valued at 45.8 allowing its investors to analyze the company’s stock valuation and its shares relative to the income of the company that it makes. With the constructive P/E value of ARM Holdings plc, the investors are able to forecast the positive earnings growth of the company.
The forward P/E of ARM Holdings plc is at 29.04 signifying the uses of estimated net earnings over the next 12 months. Investors will be getting a good grip in comparing the current earnings of the company to estimated future earnings.
With its low price-to-sales ratio of 15.76, the company is evidently a better investment since the investors are paying a lower amount for each unit of sales. However, the company sales do not necessarily expose the entire picture, as it might be unprofitable with a low P/S ratio.
The price-to-book ratio of 8.46 for ARM Holdings plc (NASDAQ:ARMH) implies that investors are highly hopeful for the organization to create more value from the given set of assets. The market value of the firm’s assets are considerably higher in contrast to their accounting value. The current P/B amount of ARM Holdings plc best indicates the value approach in differentiating good from the bad. The ratio also provides a clue to how much investors are paying for what would be left if the company went bankrupt immediately.
The target payout ratio for ARM Holdings plc is currently measuring at 33.00%, outlining what size the company’s dividends should be. It also demonstrates a stable dividend policy for ARM Holdings plc connected to the long-run, with viable earnings.
The EPS for ARM Holdings plc is valued at 1.01 with an EPS growth this year at 141.20%. The company’s EPS growth for the following year is valued at 13.87%, indicating an EPS value of 42.40% for the past 5 years, and an EPS value of 17.80% for the coming five years.
ARM Holdings plc’s sales for the past 5 years rolls at 21.10%, exhibiting an EPS growth from quarter-to-quarter at 33.30%. The sales growth of the company is 24.40% at the moment, indicating the average sales volume of the company’s products and services that have typically improved year-to-year.
Company’s existing stock price is at 45.52 with a change in price of -1.60%. As of now, the target price for the company is measuring at 55.5. ARM Holdings plc’s ROA is rolling at 16.80%, following the ROI of 16.20%. Quick and current ratio is valued at 4.1 and 4.1 respectively.