38.3% Above Target

ARM's consensus price target is $271, -38.3% below the current price of $439.46. The 27 analysts tracking ARM see downside risk at present valuations.

ARM has a consensus rating of "Buy" based on 27 Wall Street analysts. The rating breakdown is predominantly bullish, with 20 Buy/Strong Buy ratings. The consensus 12-month price target of $271 implies -38.3% downside from current levels.

At a forward P/E of 202.1249x, ARM trades at a premium valuation. The consensus price target of $271 (-38.3% downside) suggests analysts may view current valuations as stretched.

The most bullish Wall Street analyst has a price target of $500 for ARM, while the most conservative target is $130. The consensus of $271 represents the median expectation. Our quantitative valuation model projects a bull case target of $104 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.

ARM is heavily covered by Wall Street, with 27 analysts providing price targets and ratings. Of these, 0 have Strong Buy ratings, 20 have Buy ratings, 5 recommend Hold, and 2 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.

The 12-month ARM stock forecast based on 27 Wall Street analysts shows a consensus price target of $271, with estimates ranging from $130 (bear case) to $500 (bull case). The median consensus rating is "Buy". Our proprietary valuation model produces a base case fair value of $79, with bear/bull scenarios of $50/$104.

Our quantitative valuation model calculates ARM's fair value at $79 (base case), with a bear case of $50 and bull case of $104. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 50/100.

ARM trades at a forward P/E ratio of 202.1x based on next-twelve-months earnings estimates compared to a trailing P/E of 517.0x. The lower forward P/E indicates analysts expect earnings growth. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.

Analysts are cautious on ARM, with 2 Sell ratings and a price target of $271 (-38.3% from current price). The "Buy" consensus suggests careful evaluation before buying. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.

ARM analyst price targets range from $130 to $500, a 137% wide spread indicating significant analyst disagreement. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $271 consensus represents the middle ground. Our model's $50-$104 range provides an independent fundamental perspective.