Arm Holdings (ARM) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Arm Holdings

NasdaqGS•Technology•Semiconductors

$275.61+10.71(0.04%)Market closed

Market Cap

$297.11B

P/E

284.6x

P/S

57.6x

P/B

34.4x

Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services. The company provides a product portfolio, including CPU IP, GPU and neural processing unit (NPU) accelerators, system IP such as interconnects, compute platform products including pre-integrated CSSs, and development tools and software. The company serves semiconductor companies, original equipment manufacturers (OEMs), cloud service providers (CSPs), and organizations developing chips for end markets such as smartphones, consumer electronics, industrial IoT, embedded systems, cloud data centers, networking, automotive, and robotics. It provides its products and services in the United States, China, Japan, Taiwan, Korea, and internationally. The company was founded in 1990 and is based in Cambridge, United Kingdom. Arm Holdings plc operates as a subsidiary of SoftBank Group Corp.

How this company scores

ExcellentMetricSide Score: 83/100

Strongest: Growth (24/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability20/25

Growth24/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality24/25

Strengths

Growing revenueRising free cash flowStrong marginsRising earnings

No red flags in the last 8 quarters.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 354.8x5y range 124.5x – 927.3x

Currently above its 17-quarter median.

P/S · 71.8x5y range 19.3x – 94.3x

Currently above its 17-quarter median.

P/B · 42.9x5y range 11.5x – 42.9x

Price & Volume

Market Cap $297.11B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $5.16B
Q. Revenue: $1.29B
TTM EBITDA: $1.37B
TTM Op. Income: $892.00M
Q. Op. Income: $98.00M
TTM Net Income: $1.04B
Q. Net Income: $270.00M
EPS: N/A
Shares Out.: $1.08B

$5.16B in TTM revenue grew 25.1% YoY, reaching $1.29B last quarter. TTM EBITDA of $1.37B and TTM operating income of $892.00M show growth is flowing through to the bottom line. TTM net income of $1.04B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 13.4%
Op. Margin: 7.6%
Net Margin: 20.9%

Op. margin of 7.6% is down 2.6% YoY — costs are rising relative to revenue. Net margin at 20.9% Over the past year, operating margin is down 25% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 354.8x
P/S Ratio: 71.8x
P/B Ratio: 42.9x

At 354.8x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 71.8x and P/B of 42.9x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $11.20B
Cash: $3.06B
Long-Term Debt: N/A
Book Value: $8.63B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

TTM Free Cash Flow: $1.47B
FCF Margin: 28.6%
FCF / Net Income: 1.4

TTM FCF of $1.47B. The FCF / Net Income ratio of 1.4x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 124% — an improving trend.