ARM
Arm Holdings PLC
$327.07
▲ 3.7%Updated Today 12:11 PM ET
ARM at a glance — five pillars scored 0–100 from real filed financials.
Overall: Strong · 72/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 110.4% over the last 12 months
Market Cap
$335.46B
P/E
—
Forward P/E (est.)
—
ROE
11.9%
Revenue Growth
22.8%
EPS Growth
13.6%
Profit Margin
18.4%
FCF Yield
—
Debt / Equity
0x
ROIC
9.0%
Interest Coverage
—
Current Ratio
6x
Dividend Yield
—
Implied Growth (rev. DCF)
8.7%
Rating Score
72/100
Arm Holdings PLC (ARM) is a mega-cap company in the Semiconductors industry, part of the Information Technology sector of the S&P 500, with a market value around $335.46B.
In its latest reported year it generated about $4.92B in revenue and $904.00M in net profit.
Our model rates ARM Strong (72/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ARM's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ARM trades near $327.07, above its 50-day average ($301.32) and 200-day average ($178.03). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 40 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. ARM's is $35.58 (~10.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ARM found buyers near $298.38 (support) and sellers near $452.70 (resistance); its 52-week range is $100.02–$452.70. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.3× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
16.2%
Revenue moved from $2.70B in 2022 to $4.92B in 2026, a 16.2% compound annual growth rate. The most recent year grew a strong 22.8% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
97.5%
Operating Margin
18.3%
Net Margin
18.4%
ROE
11.9%
Arm Holdings PLC keeps about 18.4% of each sales dollar as net profit, with a 97.5% gross margin and 18.3% operating margin. Return on equity is 11.9% and return on invested capital about 9.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
0x
Leverage: debt-to-equity is 0.0x, with a current ratio of 6.0x. That is a conservative balance sheet — a cushion in downturns.
Operating CF
$1.52B
Free Cash Flow
$979.00M
FCF Margin
19.9%
In the latest year Arm Holdings PLC produced about $1.52B of operating cash flow and $979.00M of free cash flow after capital spending. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
—
P/S
68.18x
P/B
19.39x
EV / EBITDA
—
ARM trades at n/a trailing earnings, 68.2x sales, and 19.4x book value. Reverse-engineering today's price implies the market expects roughly 8.7% long-term free-cash-flow growth. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$38.10
Current price
$327.07
Starting FCF (latest 10-K)
$979.00M
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where ARM sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 57 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How ARM stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (137 S&P 500 companies), ARM ranks #10 of 137 by our overall rating.
P/E vs sector
—
median 44.5x
ROE vs sector
11.9%
median 21.1%
Growth vs sector
22.8%
median 18.1%
Sector rank
#10
of 137 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 137 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $327.07 today · expected CAGR -39% – -32%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $6.05B | $7.44B | $9.16B | $11.26B | $13.85B |
| Net income | $1.09B | $1.34B | $1.65B | $2.03B | $2.49B |
| EPS | $1.02 | $1.26 | $1.55 | $1.90 | $2.34 |
| Share price (low) | $12.28 | $15.11 | $18.59 | $22.86 | $28.12 |
| Share price (high) | $20.47 | $25.18 | $30.98 | $38.10 | $46.86 |
| CAGR (low–high) | -96% / -94% | -79% / -72% | -62% / -54% | -49% / -42% | -39% / -32% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ARM:
- Revenue is growing 22.8% a year, a sign of real demand.
- High net margins (18.4%) point to pricing power or efficiency.
- A conservative balance sheet (debt/equity 0.0x) lowers risk.
- Our model's overall read is Strong (72/100).
The case against ARM:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Arm Holdings PLC is a mega-cap information technology business still growing nicely, with solid profitability, and a sound balance sheet. It trades at n/a earnings, which our model scores Strong (72/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
ARM — frequently asked questions
Is ARM a good stock to buy?
We don't give buy or sell advice. Our model rates Arm Holdings PLC Strong (72/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ARM's rating on The Stocks School?
Arm Holdings PLC currently scores 72/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ARM's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Arm Holdings PLC's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ARM calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this ARM analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ARM. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.