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Is this Large Market Cap Stock target price reasonable for ARM Holdings plc (NASDAQ:ARMH)?

The company in question is, ARM Holdings plc (NASDAQ:ARMH) currently with a stock price of 65.72 (-0.67% today). The market cap for ARM Holdings plc is 31031.22, and is in the sector Technology, and Semiconductor – Specialized industry. The target price for ARM Holdings plc is 50.9. Currently ARM Holdings plc is trading with a P/E of 67.72, and a forward P/E of 38.07. Average volume for ARM Holdings plc is 2996.3 and so far today it is 788170.

Performance in the last year for ARM Holdings plc has been 47.11%. For EPS growth, ARM Holdings plc has seen a growth of 33.10%, and is looking to grow in the next year to 14.64%. More long term stats show that EPS growth has been 30.30% over the last five years and could be 15.30% for the next five years. ARM Holdings plc has seen sales growth quarter over quarter at 21.50%, with EPS growth quarter over quarter at 7.90%. The 20-day simple moving average is 46.28%, with the 200-day simple moving average coming to 48.83%.

Since the IPO date for ARM Holdings plc on the 4/17/1998, ARM Holdings plc has seen performance year to date to be 47.08%. With ARM Holdings plc trading at 65.72, the dividend yield is 0.59%, and the EPS is 0.98.

So could ARM Holdings plc, be undervalued? Well as said before P/E is 67.72. The PEG is 4.43, P/S is 22.87 and the P/B is at 12.07. The P/cash is 27.24, with P/free cash flow at *TBA.

ARM Holdings plc ability to deal with debt shows that the current ratio is 4.7, and the quick ratio is 4.7. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, ARM Holdings plc has a gross margin of 96.20%, an operating margin of 40.70% and a profit margin of 34.00%.Payout ratio for ARM Holdings plc is 35.70%. Return on assets come to 16.90% with return on investment coming to 18.30%.

Insider ownership for ARM Holdings plc, is at 1.10% and institutional ownership comes to 22.40%. Outstanding shares are at 469.03. While shares float is 466.74. The float short is currently 3.62%, and short ratio is 5.64.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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