Arm Holdings plc American Depositary Shares (ARM) P/E Ratio History
UndervaluedTrading at 205.4x vs 5Y avg 319.0x · 45th percentile · Below historical baseline · Data 2024–2027
Loading P/E history...
P/E Ratio Analysis
As of November 7, 2026, Arm Holdings plc American Depositary Shares (ARM) trades at a price-to-earnings ratio of 205.4x, with a stock price of $174.62 and trailing twelve-month earnings per share of $0.97.
The current P/E is 36% below its 5-year average of 319.0x. 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 45th percentile of its historical range.
Compared to the Technology sector median P/E of 28.8x, ARM trades at a 614% premium to its sector peers. The sector includes 337 companies with P/E ratios ranging from 0.0x to 199.3x.
Relative to the broader market, ARM commands a significant premium over the S&P 500 median P/E of 26.3x. 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 Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
ARM P/E vs Peers
Processors and Chip IP peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $86B | 56.0 | 4.15 | -45% | |
| $88B | 78.8 | 5.63 | +5% | |
| $174B | 33.0Lowest | 15.87 | -44% | |
| $732B | 169.4 | 32.80 | +165% | |
| $4.5T | 38.1 | 0.40Best | +67% | |
| $124B | 46.0 | - | +401%Best | |
| $58B | 93.4 | 3.16 | -65% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
ARM Historical P/E Data (2024–2027)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2027 Q1 | - | $354.57 | $0.97 | 365.5x | +15% |
| FY2026 Q4 | - | $151.28 | $0.84 | 180.1x | -44% |
| FY2026 Q3 | Dec 31 2025 | $109.31 | $0.75 | 145.7x | -54% |
| FY2026 Q2 | - | $141.49 | $0.78 | 181.4x | -43% |
| FY2026 Q1 | Jun 30 2025 | $161.74 | $0.66 | 245.1x | -23% |
| FY2025 Q4 | Mar 31 2025 | $106.79 | $0.75 | 142.4x | -55% |
| FY2025 Q3 | - | $123.36 | $0.76 | 162.3x | -49% |
| FY2025 Q2 | Sep 30 2024 | $143.01 | $0.60 | 237.2x | -26% |
| FY2025 Q1 | Jun 30 2024 | $163.62 | $0.39 | 416.4x | +31% |
| FY2024 Q4 | Mar 31 2024 | $124.99 | $0.28 | 441.8x | +38% |
| FY2024 Q3 | Dec 31 2023 | $75.15 | $0.08 | 991.4x | +211% |
Average P/E for displayed period: 319.0x
ARM Chart Terminal
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
Live Breakouts Feed
High-probability breakout stocks crossing their pivot across 5 pattern engines.
ARM Stock Analysis
Bull/bear thesis, analyst target revisions, and earnings execution.
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
2+ years return with dividends reinvested.
Peer Comparison
Compare growth, multiples, and margins vs sector.
ARM — Frequently Asked Questions
Quick answers to the most common questions about buying ARM stock.
What is ARM's P/E ratio?
Arm Holdings plc American Depositary Shares (ARM) trailing twelve-month P/E ratio is 205.4x, based on TTM diluted EPS of $0.97. The 5-year average P/E is 319.0x and the historical range spans 142.4x to 991.4x.
Is ARM stock overvalued or undervalued?
ARM trades at 205.4x P/E, below its 5-year average of 319.0x. At the 45th percentile of its historical range (142.4x–991.4x), the stock is priced at a discount to its own history.
Is ARM stock expensive?
No, ARM is not expensive on a historical basis. The current P/E of 205.4x is below the 5-year average of 319.0x and sits at the 45th percentile of its valuation range.
What is ARM's historical P/E range?
Over the past 5 years, ARM's P/E ratio has ranged from 142.4x to 991.4x, with a median of 237.2x and an average of 319.0x. The current P/E of 205.4x places the stock at the 45th percentile of this range. Full historical data spans 2024–2027.
How does ARM's P/E compare to the S&P 500?
ARM trades at 205.4x P/E versus the S&P 500 median of 26.3x. The 681% premium to the market typically reflects higher expected earnings growth or quality.
How does ARM's valuation compare to Technology peers?
Arm Holdings plc American Depositary Shares P/E of 205.4x compares to the Technology sector median of 28.8x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is ARM's PEG ratio?
ARM PEG ratio is N/A, based on a P/E of 205.4x and EPS growth of 13.3%. PEG normalises P/E by growth and helps compare stocks with different earnings trajectories.
What is ARM's earnings yield?
ARM earnings yield is 0.49%, the inverse of its 205.4x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.