Arm Holdings plc - American
Arm Holdings plc ADR is a semiconductor intellectual property company that designs, develops, licenses, and markets processor architectures and related computing technologies. Arm Holdings plc ADR provides CPU and GPU IP, neural processing unit accelerators, system IP, compute subsystems, and software tools that chipmakers and device makers use to build energy-efficient processors and system-on-chip products. Its technology is widely used across smartphones, consumer electronics, wearables, embedded devices, automotive systems, industrial IoT, networking equipment, cloud infrastructure, and data center applications. The company serves semiconductor companies, original equipment manufacturers, and cloud service providers through a licensing-based model that supports a broad ecosystem of customized chip designs. Arm Holdings plc ADR plays a central role in the global semiconductor market by supplying foundational architecture and IP rather than manufacturing chips itself.
$227.80
-$16.99 (-6.94%)
EOD Oct 16, 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 235x 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.
234.8x earnings, 166.8x 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.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$5.16B
▲ +22.8% YoY
Net Income (TTM)
$1.04B
▲ +14.1% YoY
Op. Margin
17.30%
▼ -2.3pp YoY
ROIC
8.90%
▼ -4.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.47B
▲ +500.6% YoY
Op. Cash Flow (TTM)
$2.09B
▲ +232.8% YoY
Net Debt
-$3.14B
Net Cash Position
Cash & Equiv.
$3.60B
3Y CAGR: +22.5%
3Y CAGR: +13.7%
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Is Arm Holdings plc - American (ARM) overvalued?
At a P/E of 234.8 and a price-to-free-cash-flow of 166.8, Arm Holdings plc - American (ARM) trades above a two-stage DCF intrinsic value of about $71.84 per share, so at $227.80 the stock looks overvalued (68.5% 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 plc - American scores 54/100 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 company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Arm Holdings plc - American's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $71.84 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 $53.88. At today's $227.80, that puts the stock about 68.5% 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.
Is Arm Holdings plc - American a high-quality business?+
Arm Holdings plc - American scores 54 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 17.3% 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 company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Arm Holdings plc - American a good stock to buy right now?+
That depends on valuation and quality together, not either alone. ARM currently trades above its estimated intrinsic value and scores 54/100 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 company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.