Arm Holdings plc American Depositary Shares (ARM) is a publicly traded company in the Technology — Semiconductors industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Arm Holdings plc is a leading technology firm that conceptualizes, engineers, and licenses core processing unit (CPU) designs and complementary technologies. These foundational innovations are crucial for semiconductor manufacturers and original equipment manufacturers (OEMs) to develop their own products.
Is Arm Holdings plc American Depositary Shares stock overvalued or undervalued in 2026?
Arm Holdings plc American Depositary Shares (ARM) trades at 243× earnings (P/E), above the median of the 314 technology companies over $2bn in Kaplio's universe. At its sector median (32.0×) $31 (-87 %).
Kaplio overview: Arm Holdings plc American Depositary Shares
Market cap $252B · 52 weeks $105 – $439 (46 % below the high) · P/E 243× · 2027 expected P/E 107× · Dividend none · Next earnings November 4, 2026 · expected EPS $0.48 · Closing price, Oct 28 · accounts published Jul 29.
- Valuation: P/E 243.2× (expensive).
- Business: ROIC 7 % (weak).
- Balance sheet: Net cash/EBITDA 1.6× (solid).
- Earnings: 7 of 8 (uneven).
What would it be worth at its usual multiples?
At its sector median (32.0×) $31 (-87 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Why is Arm Holdings plc American Depositary Shares's P/E so low?
Arm Holdings plc American Depositary Shares trades at a P/E of 243× on reported earnings, but over the last 12 months 29 % of its pre-tax income ($372M) came from outside the business, such as revaluations or sales of stakes in other companies. It is real money, but it doesn't repeat every year. Without that part, its P/E would be about 305×. Kaplio's calculation from the official quarterly accounts filed up to the quarter ended June 30, 2026.
| Quarter ended | From the business | Outside the business | Net income |
|---|---|---|---|
| September 30, 2025 | $163M | $139M | $238M |
| December 31, 2025 | $191M | $37.0M | $223M |
| March 31, 2026 | $440M | $41.0M | $313M |
| June 30, 2026 | $98.0M | $155M | $270M |
What matters in technology: 4 of 7 pass
- ROIC 7.3 %, fails.
- SBC / Revenue 21.4 %, fails.
- FCF / Revenue 19.9 %, borderline.
- 3y revenue growth 21.1 %, passes.
- Gross margin 92.5 %, passes.
- Net debt / EBITDA −1.6×, passes.
- EV/EBITDA vs own 5y 174.4×, passes.
Against its peers (reference peers) — Arm Holdings plc American Depositary Shares: P/E 243×; EV/EBITDA 174×; ROIC 7.3 %; $252B. Analog Devices, Inc. (P/E 50.8×; EV/EBITDA 30.5×; ROIC 9.6 %; $208B), Monolithic Power Systems, Inc. (P/E 74.2×; EV/EBITDA 56.0×; ROIC 18.2 %; $59.5B), Rambus Inc. (P/E 39.3×; EV/EBITDA 27.0×; ROIC 16.8 %; $9.3B).
Profitability
| Return on Equity | 13.00% |
| Return on Invested Capital | 7.33% |
| Return on Assets | 9.32% |
| Gross Margin | 95.35% |
| Operating Margin | 17.30% |
| Net Margin | 20.25% |
Financial Health
| Debt / Equity | 0.06 |
| Current Ratio | 5.25 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 41.75 |
Price Performance
| 1 month | -19.67% |
| 3 months | -1.58% |
| Year-to-date | +115.81% |
| 1 year | +38.45% |
| 3 years | +392.48% |
Related companies: ADI · SNPS · MPWR · NVDA · TSM · AVGO · 0YXG.L · MU
Explore sector: Technology · Semiconductors
More sections of ARM: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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