Arm Holdings plc

NasdaqGS:ARM Stock Report

Market Cap: US$129.3b

Arm Holdings Valuation

Is ARM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of ARM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ARM ($124.11) is trading above our estimate of future cash flow value ($51.76)

Significantly Below Future Cash Flow Value: ARM is trading above our estimate of future cash flow value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARM?

Key metric: As ARM is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ARM. This is calculated by dividing ARM's market cap by their current revenue.
What is ARM's PS Ratio?
PS Ratio28.2x
SalesUS$4.67b
Market CapUS$129.27b

Price to Sales Ratio vs Peers

How does ARM's PS Ratio compare to its peers?

The above table shows the PS ratio for ARM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average11.4x
QCOM QUALCOMM
3.3x2.35%US$147.4b
ADI Analog Devices
14.2x10.91%US$165.5b
MPWR Monolithic Power Systems
19.3x15.74%US$52.8b
MRVL Marvell Technology
8.7x20.37%US$67.5b
ARM Arm Holdings
28.2x18.19%US$129.3b

Price-To-Sales vs Peers: ARM is expensive based on its Price-To-Sales Ratio (28.2x) compared to the peer average (11.4x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

How does ARM's PS Ratio compare vs other companies in the US Semiconductor Industry?

19 CompaniesPrice / SalesEstimated GrowthMarket Cap
UCTT Ultra Clean Holdings
1.3x12.78%US$2.71b
JKS JinkoSolar Holding
0.1x18.44%US$1.22b
CSIQ Canadian Solar
0.2x11.62%US$1.12b
PENG Penguin Solutions
0.7x11.03%US$996.01m
ARM 28.2xIndustry Avg. 6.0xNo. of Companies19PS0612182430+
19 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ARM is expensive based on its Price-To-Sales Ratio (28.2x) compared to the US Semiconductor industry average (6x).

Price to Sales Ratio vs Fair Ratio

What is ARM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio28.2x
Fair PS Ratio41.3x

Price-To-Sales vs Fair Ratio: ARM is good value based on its Price-To-Sales Ratio (28.2x) compared to the estimated Fair Price-To-Sales Ratio (41.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ARM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$124.11
US$148.09
+19.32%
19.52%US$201.00US$80.00n/a35
Feb ’27US$105.36
US$157.16
+49.16%
21.89%US$215.00US$80.00n/a35
Jan ’27US$109.31
US$164.85
+50.81%
21.16%US$215.00US$80.00n/a32
Dec ’26US$135.01
US$167.97
+24.42%
20.48%US$215.00US$80.00n/a32
Nov ’26US$169.82
US$157.52
-7.25%
21.56%US$210.00US$80.00n/a32
Oct ’26US$150.38
US$152.74
+1.57%
21.82%US$210.00US$80.00n/a33
Sep ’26US$138.31
US$152.59
+10.33%
21.78%US$210.00US$80.00n/a33
Aug ’26US$137.58
US$152.26
+10.67%
21.93%US$210.00US$80.00n/a33
Jul ’26US$156.33
US$134.16
-14.18%
22.09%US$187.00US$76.54n/a34
Jun ’26US$124.54
US$131.81
+5.84%
21.93%US$180.00US$73.00n/a34
May ’26US$115.40
US$147.01
+27.39%
26.92%US$203.00US$73.00n/a34
Apr ’26US$106.98
US$157.68
+47.39%
27.68%US$225.00US$73.00n/a33
Mar ’26US$131.69
US$158.43
+20.31%
27.60%US$225.00US$73.00US$127.4533
Feb ’26US$159.55
US$148.04
-7.21%
24.07%US$215.00US$66.00US$105.3634
Jan ’26US$123.36
US$145.28
+17.77%
23.38%US$200.00US$66.00US$109.3134
Dec ’25US$134.29
US$145.42
+8.29%
23.21%US$200.00US$66.00US$135.0132
Nov ’25US$141.48
US$136.81
-3.30%
26.57%US$200.00US$66.00US$169.8230
Oct ’25US$136.08
US$137.08
+0.73%
26.95%US$200.00US$66.00US$150.3829
Sep ’25US$132.88
US$136.11
+2.43%
27.55%US$200.00US$66.00US$138.3128
Aug ’25US$121.51
US$135.15
+11.22%
27.59%US$200.00US$66.00US$137.5827
Jul ’25US$158.83
US$121.86
-23.28%
28.35%US$200.00US$65.00US$156.3328
Jun ’25US$120.52
US$111.77
-7.26%
26.10%US$180.00US$55.40US$124.5429
May ’25US$95.29
US$110.45
+15.91%
28.58%US$180.00US$55.40US$115.4029
Apr ’25US$126.91
US$103.54
-18.42%
27.21%US$180.00US$55.40US$106.9828
Mar ’25US$141.62
US$99.11
-30.02%
26.56%US$180.00US$45.00US$131.6929
US$148.09
Fair Value
16.2% undervalued intrinsic discount
35
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/03/04 22:57
End of Day Share Price 2026/03/04 00:00
Earnings2025/12/31
Annual Earnings2025/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Arm Holdings plc is covered by 63 analysts. 39 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Janco VenterArete Research Services LLP
Brett SimpsonArete Research Services LLP
Alex PoundArete Research Services LLP