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Arm Holdings plc American Depositary Receipt is an ADR representing ordinary shares of Arm Holdings plc, a British semiconductor and software design company headquartered in Cambridge, England. The asset gives U.S. investors access to Arm’s business model, which centers on designing central processing unit architectures and related intellectual property that are widely used across mobile devices, embedded systems, and other power-efficient computing applications. Arm also provides software, tools, and associated IP solutions that support chip designers and technology manufacturers in developing products for smartphones, tablets, wearables, sensors, and connected devices. As an ADR, it serves as a U.S.-traded wrapper for the underlying ordinary shares, making the company’s equity available through the American depositary share structure. Arm Holdings plc American Depositary Receipt is positioned as a key name in the semiconductor design market, with its technology embedded across a broad range of consumer and industrial electronics.
$267.19
+$5.18 (+1.98%)
EOD Jul 17, 2026
18.46% operating margin is respectable but not wide. ROIC at 8.90%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 22.8%, still solid. Margins contracted 2.3pp, which offsets some of the top-line progress.
At 314x earnings, the current multiple leaves limited room for execution misses or growth deceleration. ROIC dropped from 13.07% to 8.90%, capital efficiency is deteriorating.
314.3x earnings, 298.7x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$4.92B
▲ +22.8% YoY
Net Income (TTM)
$904M
▲ +14.1% YoY
Op. Margin
18.46%
▼ -2.3pp YoY
ROIC
8.90%
▼ -4.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$949M
▲ +500.6% YoY
Op. Cash Flow (TTM)
$1.77B
▲ +287.1% YoY
Net Debt
-$3.14B
Net Cash Position
Cash & Equiv.
$3.60B
3Y CAGR: +22.5%
3Y CAGR: +13.7%
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At a P/E of 314.3 and a price-to-free-cash-flow of 298.7, Arm Holdings (ARM) trades above a two-stage DCF intrinsic value of about $47.85 per share, so at $267.19 the stock looks overvalued (82.1% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Arm Holdings scores 57/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $47.85 per share for ARM, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $35.89. At today's $267.19, that puts the stock about 82.1% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Arm Holdings scores 57 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 18.5% operating margin and a 8.9% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. ARM currently trades above its estimated intrinsic value and scores 57/100 on quality (mixed). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.