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Arm Holdings plc American Depositary Shares ARM NASDAQ

NASDAQ Global Select • Technology • Semiconductors • GB • USD

SharesGrow Score
74/100
5/7 Pass
SharesGrow Intrinsic Value
$99.74
-38.1%
Analyst Price Target
$156.25
-3.1%
SharesGrow 7-Criteria Score All 7 criteria scored · valuation-related highlighted on this page

Arm Holdings plc American Depositary Shares (ARM) trades at a trailing P/E of 196.1, forward P/E of 92.0. Trailing earnings yield is 0.51%, forward earnings yield 1.09%. PEG 1.24. Graham Number is $11.16.

Criteria proven by this page:

  • VALUE (19/100, Fail) — trailing P/E is well above the S&P 500 average of ~25, suggesting a premium valuation (P/E 196.1); trailing earnings yield is below the 10-year Treasury yield (~4.3%), meaning bonds offer a better return (EY 0.51%).
  • Forward P/E 92.0 (down from trailing 196.1) — analysts expect earnings to grow, which would improve the valuation.
  • PEG Ratio 1.24 — between 1.0–2.0 indicates moderate valuation relative to growth.
  • Trailing Earnings Yield 0.51% — below bond yields — investors are paying a premium for expected growth rather than current earnings. Forward yield improves to 1.09% as earnings recover.
  • Analyst consensus target $156.25 (-3.1% downside) — slight downside risk — the market may be ahead of analyst expectations.

Overall SharesGrow Score: 74/100 with 5/7 criteria passed.

SharesGrow 7-Criteria Score
74/100
SG Score
View full scorecard →
VALUE
19/100
Price-to-Earnings & upside
Proven by this page
~
FUTURE
59/100
Analyst consensus
→ Forecast
PAST
100/100
→ Income
HEALTH
100/100
Debt-to-Equity & liquidity
→ Health
MOAT
82/100
→ Income
GROWTH
90/100
→ Income
INCOME
70/100
→ Income

Valuation Snapshot — ARM

Valuation Multiples
P/E (TTM)196.1
Forward P/E92.0
PEG Ratio1.24
Forward PEG0.69
P/B Ratio20.14
P/S Ratio33.62
EV/EBITDA148.1
Per Share Data
EPS (TTM)$0.75
Forward EPS (Est.)$1.75
Book Value / Share$7.34
Revenue / Share$4.40
FCF / Share$0.91
Yields & Fair Value
Earnings Yield0.51%
Forward Earnings Yield1.09%
Dividend Yield0.00%
Graham Number$11.16
SharesGrow IV$99.74 (-38.1%)
Analyst Target$156.25 (-3.1%)

Historical Valuation

Year P/E (TTM) PEG Ratio P/B Ratio P/S Ratio Dividend Yield
2021 160.7 0.00 0.00 30.75 1.20%
2022 113.5 2.70 17.57 23.06 -
2023 119.0 -21.41 15.39 23.27 -
2024 426.1 -10.35 24.63 40.33 -
2025 141.6 0.94 16.40 27.98 -

EPS: Actual vs Estimates

P/E Ratio & Earnings Yield

Earnings Per Share (EPS) History

Year EPS (Diluted) Revenue Net Income Net Margin
2021 $0.38 $2.03B $388M 19.1%
2022 $0.54 $2.7B $549M 20.3%
2023 $0.51 $2.68B $524M 19.6%
2024 $0.29 $3.23B $306M 9.5%
2025 $0.75 $4.01B $792M 19.8%

Analyst Estimates

Year EPS (Avg) EPS Range Revenue (Avg) Revenue Range Analysts
2026 $1.75 $1.58 – $1.97 $4.9B $4.87B – $4.93B 21
2027 $2.13 $1.93 – $2.37 $5.91B $5.83B – $5.99B 18
2028 $2.91 $2.86 – $2.97 $7.45B $7.34B – $7.57B 9
2029 $3.74 $3.67 – $3.82 $9.43B $9.29B – $9.58B 10
2030 $5.31 $5.21 – $5.42 $13.3B $13.11B – $13.52B 8
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