Arm Holdings plc ARM
Composite 59/100; the shares have moved about 96% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 9/100 — a strong mark against it.
Balance-sheet strength ranks 95/100 — a strong point in its favour. Growth ranks 79/100 — a strong point in its favour. Quality ranks 62/100 — a slight point in its favour.
Valuation ranks 9/100 — a strong mark against it.
What the company does Arm Holdings licenses CPU, GPU, NPU and system IP to semiconductor and OEM customers across smartphones, cloud, automotive and IoT. Its pre-integrated compute subsystems and development tools target AI accelerators and high-performance compute.
Key financials Gross margin 97.5%, operating margin 29.5% and net margin 18.4% support high-margin IP licensing. Revenue grew 20.1% and EPS 47.9% YoY. ROE 11.9%, ROA 5.8% and ROCE 12.0% indicate solid capital efficiency.
Stock health Momentum scores: 3m 19.76%, 6m 119.66%, 12m 47.76%. RSI(14) 37.90 suggests oversold conditions. Sideravia overall 63.0 (average quality, rich valuation, positive momentum).
Price vs fair value Arm trades at a PREMIUM of 84.70% to our fair-value estimate and a discount of 18.42% to the 12-month target. - Analysts highlight AI infrastructure tailwinds despite softer handset demand (Proactive) - Recent revenue and profit forecast beats lifted the stock 4% (GuruFocus.com) - Citi calls Arm a key AI beneficiary despite mixed handset outlook (Proactive) - Simply Wall St flags high price-to-book yet strong AI growth (Simply Wall St.)
Looking forward Forward P/E 102.04 and PEG 0.83 imply growth expectations are already steeply discounted. FCF yield 0.3% and no dividend underscore capital reinvestment needs. Valuation percentile 7.8/100 ranks in the bottom decile.
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Data as of 2026-09-03, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.