ARM HOLDINGS PLC /UK

ARMdata completeness 88%5 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

ARM HOLDINGS PLC /UK earns about 17% on invested capital, comfortably above its ~9% cost of capital, but has diluted owners by 4% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $5.33 and $57.25 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$2.7B1$2.68B2$3.23B3$4.01B3$4.92B3
Net income$549M4$524M5$306M6$792M6$904M6
Operating cash flow$458M7$739M8$1.09B9$397M9$1.52B9
Capital expenditure$34M10$64M11$92M12$219M12$545M12
Free cash flow (derived)$424M7$675M8$998M9$178M9$979M9
Total debt
Cash & equivalents$1B13$1.55B14$1.92B15$2.09B16$2.75B16
Diluted shares1.03B1.03B1.04B1.06B1.07B

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$77.58
your share of equity
Profit it earned you last year
$8.46
Free cash flow it threw off
$9.17
Debt you’d be carrying

10 shares is a claim on $77.58 of net worth that earned you $8.46 and generated $9.17 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
17% avg · 5y
FY22 27%FY23 21%FY24 6%FY25 15%FY26 16%

It earned about 17% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
+4% shares · 5y

Share count is up 4% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $5.33 and $57.25 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$57.25
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$979M
DCF · Growth Exit 5Y
$32.46
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$979M
Earnings Power Value
$5.33
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$549M
  • growthAssumed0.0%
Graham Number
$12.18
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $32.46
The three cases
Bear0.0%$15.67
Base20.0%$32.46
Bull20.0%$32.46

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2022-03-31 · accession 0001973239-24-000012 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2023-03-31 · accession 0001973239-25-000016 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 20-F · period ending 2024-03-31 · accession 0001973239-26-000097 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 20-F · period ending 2022-03-31 · accession 0001973239-24-000012 (NetIncomeLoss)
  5. 20-F · period ending 2023-03-31 · accession 0001973239-25-000016 (NetIncomeLoss)
  6. 20-F · period ending 2024-03-31 · accession 0001973239-26-000097 (NetIncomeLoss)
  7. 20-F · period ending 2022-03-31 · accession 0001973239-24-000012 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2023-03-31 · accession 0001973239-25-000016 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2024-03-31 · accession 0001973239-26-000097 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2022-03-31 · accession 0001973239-24-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2023-03-31 · accession 0001973239-25-000016 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2024-03-31 · accession 0001973239-26-000097 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2022-03-31 · accession 0001973239-25-000016 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  14. 20-F · period ending 2023-03-31 · accession 0001973239-24-000012 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2024-03-31 · accession 0001973239-25-000016 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2025-03-31 · accession 0001973239-26-000097 (CashAndCashEquivalentsAtCarryingValue)