ARM Relative Valuation
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. If the market price exceeds this fair value range, ARM is overvalued; if below, it's undervalued.
Historical Valuation
Arm Holdings PLC (ARM) is now in the Fair zone, suggesting that its current forward PE ratio of 77.80 is considered Fairly compared with the five-year average of 74.24. The fair price of Arm Holdings PLC (ARM) is between 100.11 to 149.64 according to relative valuation methord.
Relative Value
Fair Zone
100.11-149.64
Current Price：145.04
Fair
Trailing
Forward
P/E
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
21.41
P/B
Median3y
21.60
Median5y
21.60
0.12
FCF Yield
Median3y
0.74
Median5y
0.74
Competitors Valuation Multiple
The average P/S ratio for ARM's competitors is 10.67, providing a benchmark for relative valuation. Arm Holdings PLC Corp (ARM) exhibits a P/S ratio of 30.66, which is 187.31% above the industry average. Given its robust revenue growth of 33.73%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
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FAQ
Is Arm Holdings PLC (ARM) currently overvalued or undervalued?
What is Arm Holdings PLC (ARM) fair value?
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What is the current P/B ratio for Arm Holdings PLC (ARM) as of Jun 23 2025?
What is the current FCF Yield for Arm Holdings PLC (ARM) as of Jun 23 2025?
What is the current Forward P/E ratio for Arm Holdings PLC (ARM) as of Jun 23 2025?