ARM

Arm Holdings plc American Depositary Shares

Fundamental data last updated:May 26, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

GB

Next Earnings Date

07/29/2026

Business Summary

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.

 


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VALUATION

P/E

360.42

Market Cap ($M USD)

$326.13B

Forward P/E

34.17

PEG

0.04

PRICE TO SALES

66.29

PRICE TO BOOK

39.32

EV / EBITDA

237.22

5-Year Average P/E

Free Cash Flow Yield

0.30%

DCF Value

$7.17

Graham Number

$12.21

Price to FCF

335.52

EV to FCF

333.13

Earnings Yield

0.28%

FCF Yield

0.30%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.85

Next Year EPS Growth Estimate

$8.97

Next Year Revenue Growth Estimate

$2.54T

Return on Equity (ROE)

11.86%

FREE CASH FLOW

Operating Margin

18.31%

Debt-to-Equity

0.05

Piotroski F-Score

6

Altman Z-Score

82.93

Return on Invested Capital (ROIC)

9.32%

Current Ratio

6.00

Quick Ratio

6.00

Net Debt to EBITDA

-1.70

Interest Coverage

0.00

Gross Profit margin

94.63%

FCF PER SHARE

$0.91

REVENUE PER SHARE

$4.63

Analyze ARM on TradingView

Gainseekers Quantitative Analysis

Summary

The market appears to be pricing ARM with extreme optimism, as evidenced by its staggering Price/Earnings ratio of 244.71, which dwarfs the more reasonable Forward P/E of 23.65. This discrepancy suggests a significant expectation of future growth, yet the stock trades well above its DCF Value and Graham Number, indicating potential overvaluation. The Altman Z-score of 57.21 signals robust financial health, reducing bankruptcy risk, while the Earnings Yield of 0.41% is underwhelming, hinting at a disconnect between current earnings and market expectations. Overall, the stock’s valuation seems stretched, demanding flawless execution to justify its premium.

AI Exposure / Tech Reliance

In the rapidly evolving semiconductor industry, ARM is well-positioned to capitalize on AI advancements. Its technology underpins many modern devices, providing a crucial foundation for AI applications. This positioning enhances its resilience in adapting to technological shifts, ensuring continued relevance.

The Bull Case

For the discerning GARP investor, ARM offers compelling strengths. The company's ROIC of 9.32% reflects efficient capital allocation, while a Piotroski F-Score of 6 indicates solid financial health. Despite a modest FCF Yield of 0.44%, its impressive operating margin of 18.31% showcases strong pricing power. These metrics suggest a company capable of generating sustainable returns, making it an attractive prospect for those seeking growth at a reasonable price.

The Bear Case

However, ARM's high valuation multiples raise red flags. The Price/Sales ratio of 45.01 and Price/Book of 26.70 are alarmingly high, suggesting the stock is priced for perfection. With a Price to FCF of 227.81, the company struggles to convert earnings into free cash flow, a critical concern for long-term investors. Additionally, trading near its 52-week high, the stock appears technically overextended, increasing the risk of a pullback.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$192.22

Institutional Ownership %

1-Year Beta

3.41

Insider Buying % (6 Mo)

Distance to 52-Week High

2.77%

Distance to 52-Week Low

67.37%

EARNINGS SURPRISE %

3.45%

50-DAY SMA

$182.05

200-DAY SMA

$147.07

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.