Arm Holdings PLC (ARM) has a current Price-to-Book (P/B) ratio of 16.43. Compared to its 3-year average P/B ratio of 21.59, the current P/B ratio is approximately -23.87% higher. Relative to its 5-year average P/B ratio of 21.59, the current P/B ratio is about -23.87% higher. Arm Holdings PLC (ARM) has a Forward Free Cash Flow (FCF) yield of approximately 0.95%. Compared to its 3-year average FCF yield of 0.70%, the current FCF yield is approximately 35.92% lower. Relative to its 5-year average FCF yield of 0.70%, the current FCF yield is about 35.92% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for ARM competitors is 9.31, providing a benchmark for relative valuation. Arm Holdings PLC Corp (ARM.O) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 26.35%, this premium appears sustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of ARM increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of ARM in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is ARM currently overvalued or undervalued?

What is Arm Holdings PLC (ARM) fair value?

ARM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Arm Holdings PLC (ARM) is between 116.26 to 167.34 according to relative valuation method.

How does ARM's valuation metrics compare to the industry average?

The average P/S ratio for ARM's competitors is 9.31, providing a benchmark for relative valuation. Arm Holdings PLC Corp (ARM) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 26.35%, this premium appears sustainable.

What is the current P/B ratio for Arm Holdings PLC (ARM) as of Mar 03 2026?

As of Mar 03 2026, Arm Holdings PLC (ARM) has a P/B ratio of 16.43. This indicates that the market values ARM at 16.43 times its book value.

What is the current FCF Yield for Arm Holdings PLC (ARM) as of Mar 03 2026?

As of Mar 03 2026, Arm Holdings PLC (ARM) has a FCF Yield of 0.95%. This means that for every dollar of Arm Holdings PLC's market capitalization, the company generates 0.95 cents in free cash flow.

What is the current Forward P/E ratio for Arm Holdings PLC (ARM) as of Mar 03 2026?

As of Mar 03 2026, Arm Holdings PLC (ARM) has a Forward P/E ratio of 59.18. This means the market is willing to pay $59.18 for every dollar of Arm Holdings PLC's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Arm Holdings PLC (ARM) as of Mar 03 2026?

As of Mar 03 2026, Arm Holdings PLC (ARM) has a Forward P/S ratio of 22.77. This means the market is valuing ARM at $22.77 for every dollar of expected revenue over the next 12 months.

ARM Valuation