Arm Holdings plc American Depositary Shares (ARM) Financial Ratios
5 years of historical data (2022–2026) · Technology · Semiconductors
EV/EBITDA
↓
334.93
↑+35% vs avg
5yr avg: 247.34
P/FCF
↑
398.20
↑+27% vs avg
5yr avg: 313.54
30Y Low137.9·High165.0
P/B Ratio
↓
47.22
↑+133% vs avg
5yr avg: 20.25
30Y Low16.6·High24.7
ROE
↓
12.0%
-2% vs avg
5yr avg: 12.2%
30Y Low7%·High15%
Debt/EBITDA
↑
0.37
↓-13% vs avg
5yr avg: 0.43
30Y Low0.3·High0.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ARM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Arm Holdings plc American Depositary Shares trades at 431.0x earnings, 72% above its 5-year average of 250.5x, sitting at the 100th percentile of its historical range. Compared to the Technology sector median P/E of 28.3x, the stock trades at a premium of 1421%. On a free-cash-flow basis, the stock trades at 398.2x P/FCF, 27% above the 5-year average of 313.5x.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|---|
| Market Cap | $389.8B | $161.6B | $113.5B | $130.6B | — | — |
| Enterprise Value | $387.5B | $159.2B | $111.8B | $128.9B | — | — |
| P/E Ratio → | 431.05 | 177.98 | 142.39 | 431.00 | — | — |
| P/S Ratio | 79.24 | 32.84 | 28.33 | 40.38 | — | — |
| P/B Ratio | 47.22 | 19.50 | 16.60 | 24.66 | — | — |
| P/FCF | 398.20 | 165.03 | 637.74 | 137.86 | — | — |
| P/OCF | 255.80 | 106.02 | 285.94 | 119.77 | — | — |
P/E links to full P/E history page with 30-year chart
ARM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Arm Holdings plc American Depositary Shares's enterprise value stands at 334.9x EBITDA, 35% above its 5-year average of 247.3x. The Technology sector median is 16.5x, placing the stock at a 1928% premium on an enterprise-value basis.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|---|
| EV / Revenue | — | 32.37 | 27.90 | 39.86 | — | — |
| EV / EBITDA | 334.93 | 137.64 | 110.69 | 493.70 | — | — |
| EV / EBIT | 426.78 | 175.38 | 155.26 | 607.81 | — | — |
| EV / FCF | — | 162.66 | 628.03 | 136.07 | — | — |
ARM Profitability
Margins and return-on-capital ratios measuring operating efficiency
Arm Holdings plc American Depositary Shares earns an operating margin of 18.5%. Operating margins have expanded from 3.1% to 18.5% over the past 3 years, signaling improving operational efficiency. ROE of 12.0% is modest. ROIC of 12.3% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|---|
| Gross Margin | 92.5% | 92.5% | 94.9% | 92.8% | 92.7% | 91.9% |
| Operating Margin | 18.5% | 18.5% | 20.6% | 3.1% | 25.3% | 25.2% |
| Net Profit Margin | 18.4% | 18.4% | 19.8% | 9.5% | 19.6% | 20.3% |
Return on Capital
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|---|
| ROE | 12.0% | 12.0% | 13.1% | 6.5% | 13.8% | 15.5% |
| ROA | 9.2% | 9.2% | 9.4% | 4.1% | 7.8% | 8.4% |
| ROIC | 12.3% | 12.3% | 14.2% | 2.4% | 18.4% | 18.2% |
| ROCE | 10.3% | 10.3% | 11.5% | 1.7% | 12.8% | 13.3% |
ARM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Arm Holdings plc American Depositary Shares carries a Debt/EBITDA ratio of 0.4x, which is very conservative (87% below the sector average of 2.9x). The company holds a net cash position — cash of $2.8B exceeds total debt of $432M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|---|
| Debt / Equity | 0.05 | 0.05 | 0.05 | 0.04 | 0.05 | 0.07 |
| Debt / EBITDA | 0.37 | 0.37 | 0.35 | 0.87 | 0.26 | 0.30 |
| Net Debt / Equity | — | -0.28 | -0.25 | -0.32 | -0.33 | -0.21 |
| Net Debt / EBITDA | -2.00 | -2.00 | -1.71 | -6.50 | -1.57 | -0.87 |
| Debt / FCF | — | -2.37 | -9.71 | -1.79 | -2.07 | -1.94 |
| Interest Coverage | — | — | — | — | — | — |
Net cash position: cash ($2.8B) exceeds total debt ($432M)
ARM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Arm Holdings plc American Depositary Shares's current ratio of 6.00x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 2.79x to 6.00x over the past 3 years.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|---|
| Current Ratio | 6.00 | 6.00 | 5.20 | 2.79 | 2.60 | 2.22 |
| Quick Ratio | 6.00 | 6.00 | 5.20 | 2.79 | 2.60 | 2.22 |
| Cash Ratio | 3.46 | 3.46 | 3.04 | 1.94 | 1.63 | 1.17 |
| Asset Turnover | — | 0.46 | 0.45 | 0.41 | 0.39 | 0.42 |
| Inventory Turnover | — | — | — | — | — | — |
| Days Sales Outstanding | — | 168.92 | 172.89 | 127.46 | 158.73 | 174.20 |
ARM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Arm Holdings plc American Depositary Shares does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 0.2% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|---|
| Earnings Yield | 0.2% | 0.6% | 0.7% | 0.2% | — | — |
| FCF Yield | 0.3% | 0.6% | 0.2% | 0.7% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $1.1B | $1.1B | $1.0B | $1.0B | $1.0B |
Peer Comparison
Compare ARM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ARMYou | $390B | 431.0 | 334.9 | 398.2 | 92.5% | 18.5% | 12.0% | 12.3% | 0.4 |
 CEVA | $1B | -103.4 | — | 2455.5 | 87.1% | -10.4% | -3.5% | -2.9% | — |
 SNPS | $88B | 57.4 | 63.3 | 65.5 | 77.0% | 13.0% | 7.1% | 3.0% | 9.1 |
 CDNS | $105B | 93.4 | 55.2 | 65.9 | 86.4% | 31.1% | 21.9% | 25.9% | 1.3 |
 QCOM | $215B | 40.7 | 16.0 | 16.8 | 55.4% | 27.9% | 23.3% | 29.1% | 1.2 |
 INTC | $664B | -2245.8 | 59.6 | — | 34.8% | -0.0% | -0.2% | -0.0% | 4.0 |
 AMD | $848B | 196.2 | 126.4 | 125.8 | 49.5% | 10.7% | 7.2% | 4.7% | 0.7 |
 NVDA | $4.8T | 40.8 | 36.4 | 50.1 | 71.1% | 60.4% | 101.5% | 81.8% | 0.1 |
 MRVL | $244B | 90.9 | 93.7 | 174.8 | 51.0% | 16.3% | 19.3% | 6.0% | 1.8 |
 MPWR | $70B | 111.7 | 88.3 | 105.0 | 55.2% | 26.1% | 18.4% | 22.2% | 0.0 |
 SLAB | $7B | -110.5 | — | 109.7 | 58.2% | -9.0% | -6.0% | -6.8% | — |
| Technology Median | — | 28.3 | 16.5 | 19.0 | 49.0% | -0.2% | 1.7% | 2.6% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 5 years · Updated daily
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ARM — Frequently Asked Questions
Quick answers to the most common questions about buying ARM stock.
What is Arm Holdings plc American Depositary Shares's P/E ratio?
Arm Holdings plc American Depositary Shares's current P/E ratio is 431.0x. The historical average is 160.2x. This places it at the 100th percentile of its historical range.
What is Arm Holdings plc American Depositary Shares's EV/EBITDA?
Arm Holdings plc American Depositary Shares's current EV/EBITDA is 334.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
What is Arm Holdings plc American Depositary Shares's ROE?
Arm Holdings plc American Depositary Shares's return on equity (ROE) is 12.0%. The historical average is 12.2%.
Is ARM stock overvalued?
Based on historical data, Arm Holdings plc American Depositary Shares is trading at a P/E of 431.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Arm Holdings plc American Depositary Shares's profit margins?
Arm Holdings plc American Depositary Shares has 92.5% gross margin and 18.5% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Arm Holdings plc American Depositary Shares have?
Arm Holdings plc American Depositary Shares's Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.