wide range of evaluations for the chip designer
Arm Ltd. is preparing for a long-awaited IPO this year, and international investment banks are valuing the chip developer at anywhere between $30 billion and $70 billion.
The broad range illustrates how challenging it is to value the business in the face of market volatility for semiconductor stocks.
Soft Bank Group Corp. sought a $60 billion valuation for Arm.
Masayoshi Son, the founder of SoftBank, earlier declared that he wanted Arm’s debut to be the biggest in the history of the semiconductor industry and that he wanted the business to be valued at $60 billion.
British lawmakers who pressured the domestic IT behemoth ahead of its IPO took a hit when Arm opted not to sell shares on the London Stock Exchange for the time being.
Kirk Boudry, an analyst at Redex Research, writes that Arm is valued at around $37 billion, and anything beyond that figure constitutes a profit.