(ARM) Arm Holdings American - Overview
Exchange: NASDAQ •
Country: United Kingdom •
Currency: USD •
Type: Common Stock •
ISIN: US0420682058
Stock: Cpu, Gpu, Ip, Development, Tools
Total Rating 47
Risk 88
Buy Signal 1.05
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 74.7% |
| Relative Tail Risk | -7.91% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.31 |
| Alpha | -57.62 |
| Character TTM | |
|---|---|
| Beta | 2.158 |
| Beta Downside | 1.690 |
| Drawdowns 3y | |
|---|---|
| Max DD | 53.97% |
| CAGR/Max DD | 0.60 |
Description: ARM Arm Holdings American January 26, 2026
Arm Holdings plc designs, licenses, and supports a broad portfolio of semiconductor IP-including CPU cores, GPU architectures, accelerators, and system-level components-that is integrated by chipmakers and OEMs across automotive, data-center, consumer, and IoT markets. The company’s business model centers on royalty and licensing fees rather than direct chip sales, allowing it to monetize designs at scale.
In its most recent fiscal year (FY 2024), Arm reported total revenue of roughly $2.7 billion, with licensing revenue up about 12 % year-over-year, driven by a surge in AI-focused accelerator designs and a 20 % increase in automotive design wins. R&D intensity remains high at ~30 % of revenue, reflecting ongoing investment in next-generation architectures such as the “Cortex-X4” and “Immortalis-GPU” families. Macro-level drivers include accelerating demand for AI compute, a rebound in consumer electronics after the 2023-24 chip shortage, and continued geopolitical pressure to diversify supply chains away from China.
For a deeper, data-rich assessment of Arm’s valuation dynamics, you may find ValueRay’s analyst toolkit useful.
Piotroski VR‑10 (Strict, 0-10) 4.5
| Net Income: 830.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 5.29 > 1.0 |
| NWC/Revenue: 99.95% < 20% (prev 89.53%; Δ 10.42% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.58b > Net Income 830.0m |
| Net Debt (-2.09b) to EBITDA (1.07b): -1.95 < 3 |
| Current Ratio: 5.59 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.07b) vs 12m ago 0.56% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 49.58% > 50% (prev 43.72%; Δ 5.87% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
Altman Z'' 6.91
| A: 0.45 (Total Current Assets 5.37b - Total Current Liabilities 960.0m) / Total Assets 9.71b |
| B: 0.40 (Retained Earnings 3.91b / Total Assets 9.71b) |
| C: 0.10 (EBIT TTM 860.0m / Avg Total Assets 8.90b) |
| D: 1.87 (Book Value of Equity 4.31b / Total Liabilities 2.30b) |
| Altman-Z'' Score: 6.91 = AAA |
Beneish M -3.10
| DSRI: 0.97 (Receivables 1.98b/1.64b, Revenue 4.41b/3.54b) |
| GMI: 0.98 (GM 95.63% / 93.62%) |
| AQI: 0.79 (AQ_t 0.34 / AQ_t-1 0.43) |
| SGI: 1.25 (Revenue 4.41b / 3.54b) |
| TATA: -0.08 (NI 830.0m - CFO 1.58b) / TA 9.71b) |
| Beneish M-Score: -3.10 (Cap -4..+1) = AA |
What is the price of ARM shares?
As of February 08, 2026, the stock is trading at USD 123.70 with a total of 15,783,658 shares traded.
Over the past week, the price has changed by +17.41%, over one month by +7.07%, over three months by -21.83% and over the past year by -26.14%.
Over the past week, the price has changed by +17.41%, over one month by +7.07%, over three months by -21.83% and over the past year by -26.14%.
Is ARM a buy, sell or hold?
Arm Holdings American has received a consensus analysts rating of 3.80.
Therefor, it is recommend to hold ARM.
- StrongBuy: 17
- Buy: 5
- Hold: 14
- Sell: 1
- StrongSell: 3
What are the forecasts/targets for the ARM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 148.6 | 20.1% |
| Analysts Target Price | 148.6 | 20.1% |
| ValueRay Target Price | 119.6 | -3.3% |
ARM Fundamental Data Overview February 07, 2026
P/E Trailing = 147.84
P/E Forward = 46.2963
P/S = 25.2097
P/B = 14.2727
P/EG = 1.4351
Revenue TTM = 4.41b USD
EBIT TTM = 860.0m USD
EBITDA TTM = 1.07b USD
Long Term Debt = 429.0m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 56.0m USD (from shortTermDebt, last quarter)
Debt = 429.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -2.09b USD (from netDebt column, last quarter)
Enterprise Value = 114.93b USD (117.75b + Debt 429.0m - CCE 3.26b)
Interest Coverage Ratio = unknown (Ebit TTM 860.0m / Interest Expense TTM 0.0)
EV/FCF = 100.5x (Enterprise Value 114.93b / FCF TTM 1.14b)
FCF Yield = 1.00% (FCF TTM 1.14b / Enterprise Value 114.93b)
FCF Margin = 25.93% (FCF TTM 1.14b / Revenue TTM 4.41b)
Net Margin = 18.81% (Net Income TTM 830.0m / Revenue TTM 4.41b)
Gross Margin = unknown ((Revenue TTM 4.41b - Cost of Revenue TTM 193.0m) / Revenue TTM)
Tobins Q-Ratio = 11.84 (Enterprise Value 114.93b / Total Assets 9.71b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 429.0m)
Taxrate = 21.19% (64.0m / 302.0m)
NOPAT = 677.7m (EBIT 860.0m * (1 - 21.19%))
Current Ratio = 5.59 (Total Current Assets 5.37b / Total Current Liabilities 960.0m)
Debt / Equity = 0.06 (Debt 429.0m / totalStockholderEquity, last quarter 7.41b)
Debt / EBITDA = -1.95 (Net Debt -2.09b / EBITDA 1.07b)
Debt / FCF = -1.83 (Net Debt -2.09b / FCF TTM 1.14b)
Total Stockholder Equity = 6.92b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.33% (Net Income 830.0m / Total Assets 9.71b)
RoE = 12.00% (Net Income TTM 830.0m / Total Stockholder Equity 6.92b)
RoCE = 11.71% (EBIT 860.0m / Capital Employed (Equity 6.92b + L.T.Debt 429.0m))
RoIC = 9.80% (NOPAT 677.7m / Invested Capital 6.92b)
WACC = 13.82% (E(117.75b)/V(118.18b) * Re(13.87%) + D(429.0m)/V(118.18b) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 13.87% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.95%
[DCF Debug] Terminal Value 57.23% ; FCFF base≈896.4m ; Y1≈802.7m ; Y5≈681.5m
Fair Price DCF = 7.50 (EV 5.87b - Net Debt -2.09b = Equity 7.96b / Shares 1.06b; r=13.82% [WACC]; 5y FCF grow -12.91% → 2.90% )
EPS Correlation: 63.63 | EPS CAGR: 26.36% | SUE: 1.08 | # QB: 2
Revenue Correlation: 91.98 | Revenue CAGR: 16.44% | SUE: 3.08 | # QB: 1
EPS next Quarter (2026-06-30): EPS=0.39 | Chg30d=-0.069 | Revisions Net=-1 | Analysts=25
EPS next Year (2027-03-31): EPS=2.19 | Chg30d=-0.075 | Revisions Net=-3 | Growth EPS=+25.6% | Growth Revenue=+20.7%
P/E Forward = 46.2963
P/S = 25.2097
P/B = 14.2727
P/EG = 1.4351
Revenue TTM = 4.41b USD
EBIT TTM = 860.0m USD
EBITDA TTM = 1.07b USD
Long Term Debt = 429.0m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 56.0m USD (from shortTermDebt, last quarter)
Debt = 429.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -2.09b USD (from netDebt column, last quarter)
Enterprise Value = 114.93b USD (117.75b + Debt 429.0m - CCE 3.26b)
Interest Coverage Ratio = unknown (Ebit TTM 860.0m / Interest Expense TTM 0.0)
EV/FCF = 100.5x (Enterprise Value 114.93b / FCF TTM 1.14b)
FCF Yield = 1.00% (FCF TTM 1.14b / Enterprise Value 114.93b)
FCF Margin = 25.93% (FCF TTM 1.14b / Revenue TTM 4.41b)
Net Margin = 18.81% (Net Income TTM 830.0m / Revenue TTM 4.41b)
Gross Margin = unknown ((Revenue TTM 4.41b - Cost of Revenue TTM 193.0m) / Revenue TTM)
Tobins Q-Ratio = 11.84 (Enterprise Value 114.93b / Total Assets 9.71b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 429.0m)
Taxrate = 21.19% (64.0m / 302.0m)
NOPAT = 677.7m (EBIT 860.0m * (1 - 21.19%))
Current Ratio = 5.59 (Total Current Assets 5.37b / Total Current Liabilities 960.0m)
Debt / Equity = 0.06 (Debt 429.0m / totalStockholderEquity, last quarter 7.41b)
Debt / EBITDA = -1.95 (Net Debt -2.09b / EBITDA 1.07b)
Debt / FCF = -1.83 (Net Debt -2.09b / FCF TTM 1.14b)
Total Stockholder Equity = 6.92b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.33% (Net Income 830.0m / Total Assets 9.71b)
RoE = 12.00% (Net Income TTM 830.0m / Total Stockholder Equity 6.92b)
RoCE = 11.71% (EBIT 860.0m / Capital Employed (Equity 6.92b + L.T.Debt 429.0m))
RoIC = 9.80% (NOPAT 677.7m / Invested Capital 6.92b)
WACC = 13.82% (E(117.75b)/V(118.18b) * Re(13.87%) + D(429.0m)/V(118.18b) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 13.87% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.95%
[DCF Debug] Terminal Value 57.23% ; FCFF base≈896.4m ; Y1≈802.7m ; Y5≈681.5m
Fair Price DCF = 7.50 (EV 5.87b - Net Debt -2.09b = Equity 7.96b / Shares 1.06b; r=13.82% [WACC]; 5y FCF grow -12.91% → 2.90% )
EPS Correlation: 63.63 | EPS CAGR: 26.36% | SUE: 1.08 | # QB: 2
Revenue Correlation: 91.98 | Revenue CAGR: 16.44% | SUE: 3.08 | # QB: 1
EPS next Quarter (2026-06-30): EPS=0.39 | Chg30d=-0.069 | Revisions Net=-1 | Analysts=25
EPS next Year (2027-03-31): EPS=2.19 | Chg30d=-0.075 | Revisions Net=-3 | Growth EPS=+25.6% | Growth Revenue=+20.7%