ARM made .54 eps in 2022 and .51 eps in 2023. at 51 cents eps, its 124 PE.
Revenue per share current is 2.60 revenue per share, giving a price to sales over 20 PS.
Its unclear if ARM is growing sales and earnings at a rate that justifies the current premium.
Possible multiples examples:
if pe goes to:
20pe x .51 = 10.20
30pe x .51 =15.30
40pe x .51= 20.40
so clearly there is some high growth rate implied at the current price.
Implied growth rate is in the 30% to 60 % annual growth range.
If its not a grower, is it priced as a tech hedge? in case other firms buy it?
From a value and growth investor perspective, the math doesnt add up.
Revenue per share current is 2.60 revenue per share, giving a price to sales over 20 PS.
Its unclear if ARM is growing sales and earnings at a rate that justifies the current premium.
Possible multiples examples:
if pe goes to:
20pe x .51 = 10.20
30pe x .51 =15.30
40pe x .51= 20.40
so clearly there is some high growth rate implied at the current price.
Implied growth rate is in the 30% to 60 % annual growth range.
If its not a grower, is it priced as a tech hedge? in case other firms buy it?
From a value and growth investor perspective, the math doesnt add up.