Stock AnalizArm Holdings PLC ARM
Semiconductors · IPO 2023 · data as of November 13, 2026
Arm Holdings PLC (ARM) is a technology company listed in the US with a market value of about $202.7B. In the twelve months to September 30, 2026 it had revenue of $5.5B and net income of $936M, a net margin of 17.1%.
Its overall Stock Analiz score is 2.2 out of 5 (weak). The strongest part is future growth (5/5); the weakest is value (0/5).
Key numbers: a P/E of 218.6, a price to free cash flow of 172.5, a 5-year average ROIC of 9%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 65% below the current price.
Score: 2.2 / 5
Checks passed
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- Profitable 5 years in a row
- More cash than debt, or low debt to equity
- Positive free cash flow
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
Valuation
Growth and quality
Financials, last 5 years
| Fiscal year | TTM | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|---|
| Revenue | $5.5B | $4.9B | $4.0B | $3.2B | $2.7B | $2.7B |
| Net income | $936M | $904M | $792M | $306M | $524M | $549M |
| Free cash flow | $1.2B | $979M | $178M | $998M | $675M | $424M |
| EPS (diluted) | $0.87 | $0.85 | $0.74 | $0.29 | $0.49 | $0.52 |
| Net margin | 17.1% | 18.4% | 19.8% | 9.5% | 19.6% | 20.3% |
| ROIC | — | 8.1% | 9.1% | 1.6% | 12.3% | 15.3% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 40 analysts is $274.56, 44% above the current price; targets range from $125.00 to $500.00; the consensus rating is “Buy”; expected EPS is $2.27 for the fiscal year ending March 31, 2027.
Frequently asked questions
What is Arm Holdings’s P/E ratio?
About 218.6, based on the last twelve months of diluted earnings per share (forward P/E about 67.2).
Is Arm Holdings stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 65% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Arm Holdings pay a dividend?
Not currently.
Is Arm Holdings a good stock to buy?
We do not give buy or sell advice. Arm Holdings scores 2.2 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.