Historical Valuation
Arm Holdings PLC (ARM) is now in the Fair zone, suggesting that its current forward PE ratio of 59.18 is considered Fairly compared with the five-year average of 75.04. The fair price of Arm Holdings PLC (ARM) is between 106.74 to 153.43 according to relative valuation methord.
Relative Value
Fair Zone
106.74-153.43
Current Price：113.71
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
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.
P/B
Median3y
21.59
Median5y
21.59
FCF Yield
Median3y
0.70
Median5y
0.70
Competitors Valuation Multiple
AI Analysis for ARM
The average P/S ratio for ARM competitors is 10.95, providing a benchmark for relative valuation. Arm Holdings PLC Corp (ARM.O) exhibits a P/S ratio of 22.77, which is 107.85% above the industry average. Given its robust revenue growth of 34.48%, this premium appears sustainable.
Performance Decomposition
AI Analysis for ARM
1Y
3Y
5Y
Market capitalization of ARM increased by 0.00% over the past 1 year. 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 is driven by Unknown.
People Also Watch
Frequently Asked Questions
Is ARM currently overvalued or undervalued?
Arm Holdings PLC (ARM) is now in the Fair zone, suggesting that its current forward PE ratio of 59.18 is considered Fairly compared with the five-year average of 75.04. The fair price of Arm Holdings PLC (ARM) is between 106.74 to 153.43 according to relative valuation methord.
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 106.74 to 153.43 according to relative valuation methord.
How does ARM's valuation metrics compare to the industry average?
The average P/S ratio for ARM's competitors is 10.95, providing a benchmark for relative valuation. Arm Holdings PLC Corp (ARM) exhibits a P/S ratio of 22.77, which is 107.85% above the industry average. Given its robust revenue growth of 34.48%, this premium appears sustainable.
What is the current P/B ratio for Arm Holdings PLC (ARM) as of Jan 09 2026?
As of Jan 09 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 Jan 09 2026?
As of Jan 09 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 Jan 09 2026?
As of Jan 09 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 Jan 09 2026?
As of Jan 09 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.