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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 РSpecialized 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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