Arm Holdings plc American Depositary Shares (ARM) P/E Ratio History
Historical price-to-earnings valuation from 2024 to 2026
Loading P/E history...
ARM Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 6, 2026, Arm Holdings plc American Depositary Shares (ARM) trades at a price-to-earnings ratio of 278.5x, with a stock price of $208.84 and trailing twelve-month earnings per share of $0.78.
The current P/E is 21% below its 5-year average of 352.3x. Over the past five years, ARM's P/E has ranged from a low of 142.4x to a high of 991.4x, placing the current valuation at the 63th percentile of its historical range.
Compared to the Technology sector median P/E of 26.7x, ARM trades at a 942% premium to its sector peers. The sector includes 358 companies with P/E ratios ranging from 0.0x to 197.6x.
Relative to the broader market, ARM commands a significant premium over the S&P 500 median P/E of 25.1x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our ARM DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
ARM P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $96B | 62.5 | 4.63 | -45% | |
| $98B | 87.1 | 6.23 | +5% | |
| $197B | 37.2Lowest | 17.90 | -44% | |
| $579B | 134.1 | 25.95 | +165% | |
| $4.8T | 40.1 | 0.42Best | +67% | |
| $146B | 55.0 | - | +401%Best | |
| $78B | 124.6 | 4.22 | -65% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
ARM Historical P/E Data (2024–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q2 | $141.49 | $0.78 | 181.4x | -49% | |
| FY2026 Q1 | Mon Jun 30 2025 00:00:00 GM | $161.74 | $0.66 | 245.1x | -30% |
| FY2025 Q4 | Mon Mar 31 2025 00:00:00 GM | $106.79 | $0.75 | 142.4x | -60% |
| FY2025 Q3 | $123.36 | $0.76 | 162.3x | -54% | |
| FY2025 Q2 | Mon Sep 30 2024 00:00:00 GM | $143.01 | $0.60 | 237.2x | -33% |
| FY2025 Q1 | Sun Jun 30 2024 00:00:00 GM | $163.62 | $0.39 | 416.4x | +18% |
| FY2024 Q4 | Sun Mar 31 2024 00:00:00 GM | $124.99 | $0.28 | 441.8x | +25% |
| FY2024 Q3 | Sun Dec 31 2023 00:00:00 GM | $75.15 | $0.08 | 991.4x | +181% |
Average P/E for displayed period: 352.3x
Full ARM Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
Should I Buy ARM Right Now?
Bull case, key risks, Wall St analyst verdict, and what council investors are saying — updated daily.
See ARM's True Return
Price is only half the story. See total return with reinvested dividends.
Launch CalculatorIs ARM Undervalued?
DCF intrinsic value, peer multiples, and analyst estimates — see what the stock is really worth.
View ValuationCompare ARM vs NVDA
Side-by-side business, growth, and profitability comparison vs NVIDIA Corporation.
Start ComparisonARM — Frequently Asked Questions
Quick answers to the most common questions about buying ARM stock.
Is ARM stock overvalued or undervalued?
ARM trades at 278.5x P/E, below its 5-year average of 352.3x. At the 63th percentile of historical range, the stock is priced at a discount to its own history.
How does ARM's valuation compare to peers?
Arm Holdings plc American Depositary Shares P/E of 278.5x compares to sector median of 26.7x. The premium reflects expected growth above peers.
What is ARM's PEG ratio?
ARM PEG ratio is N/A. Above 2.0 indicates premium valuation relative to growth rate. Historical P/E data spans 2024-2026.