# Arm Holdings plc American (ARM) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Semiconductors & Semiconductor Equipment. Price $252.09, market value $269.2 billion.

## Valuation
- **P/E (trailing): 257.2×** (5-yr avg 250.5×, 3-yr avg 250.5×). Arm Holdings plc American trades at 257.2× trailing earnings, close to its own five-year average of 250.5×. The Technology median in the September 2026 study was 32.1×. Forward P/E is 82.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 6.17**. A PEG of 6.17 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 52.2×**. Each dollar of revenue is priced at 52.2×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 31.2×**. The shares trade at 31.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 0.5%** (5-yr avg 0.5%). Free cash flow equals 0.5% of the market value, in line with its five-year average of 0.5%.
- **Earnings yield: 0.4%**. The inverse of the P/E: 0.4% of the price is earned each year.

## Profitability
- **Gross margin: 97.5%**. Arm Holdings plc American keeps 97.5% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 17.3%**. 17.3% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 18.4%**. 18.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.9%**. 10.9% on shareholders' equity is solid.
- **Return on assets: 9.8%**. Each dollar of assets produces 9.8% of profit.

## Growth
- **Revenue growth (1 yr): 22.8%** (3-yr 22.5%/yr). Revenue grew 22.8% over the last year.
- **EPS growth (1 yr): 13.3%** (3-yr 18.6%/yr). Earnings per share rose 13.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 13.2%/yr**. Free cash flow has compounded at 13.2% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Current ratio: 6.00** (quick 6.00). Current assets cover the next year's liabilities 6.00 times.
- **Altman Z-score: 69.24**. A Z-score of 69.24 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Arm Holdings plc American does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (39 analysts). 39 analysts cover Arm Holdings plc American; the consensus is buy, with an average price target of $286.44 (+14% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 86.1%** (YTD 130.6%, 3-mo -26.5%). The shares are up 86.1% over twelve months including dividends.
- **From 52-week high: -44.3%** (152.0% above the low). Trading 44% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 3.26** (volatility 76%). Beta of 3.26 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ARM · Page: https://foliofundamentals.com/stocks/arm

Not investment advice.