Arm Holdings plc American Depositary Shares (ARM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Arm Holdings plc American Depositary Shares stock (ARM) is currently trading at $157.07. Arm Holdings plc American Depositary Shares PE ratio is 177.58. Arm Holdings plc American Depositary Shares PS ratio (Price-to-Sales) is 30.68. Analyst consensus price target for ARM is $151.86. WallStSmart rates ARM as Underperform.
- ARM PE ratio analysis and historical PE chart
- ARM PS ratio (Price-to-Sales) history and trend
- ARM intrinsic value — DCF, Graham Number, EPV models
- ARM stock price prediction 2025 2026 2027 2028 2029 2030
- ARM fair value vs current price
- ARM insider transactions and insider buying
- Is ARM undervalued or overvalued?
- Arm Holdings plc American Depositary Shares financial analysis — revenue, earnings, cash flow
- ARM Piotroski F-Score and Altman Z-Score
- ARM analyst price target and Smart Rating
Arm Holdings plc American Depositary Shares
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ARM Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Arm Holdings plc American Depositary Shares (ARM)
ARM trades 2323% above its Graham fair value of $5.17, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Arm Holdings plc American Depositary Shares (ARM) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, revenue growth, profit margin. Concerns around price/sales and price/book. Fundamentals are solid but monitor weak areas for improvement.
Arm Holdings plc American Depositary Shares (ARM) Key Strengths (4)
95.00% of shares held by major funds and institutions
Large-cap company with substantial market presence
Strong revenue growth at 26.30% annually
Strong profitability: $17 kept per $100 revenue
Supporting Valuation Data
Arm Holdings plc American Depositary Shares (ARM) Areas to Watch (6)
Earnings declining -12.30%, profits shrinking
Very expensive at 30.7x annual revenue
Very expensive at 18.0x book value
Moderate profitability with room for improvement
Growth is fairly priced, not cheap, not expensive
Decent operational efficiency, solid but not exceptional
Supporting Valuation Data
Arm Holdings plc American Depositary Shares (ARM) Detailed Analysis Report
Overall Assessment
This company scores 52/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 8.8/10) while 6 fall into concern territory (avg 3.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap, Revenue Growth. Profitability is solid with Profit Margin at 17.20%. Growth metrics are encouraging with Revenue Growth at 26.30%.
The Bear Case
The primary concerns are EPS Growth, Price/Sales, Price/Book. Some valuation metrics including PEG Ratio (1.90), Price/Sales (30.68), Price/Book (18.02) suggest expensive pricing. Growth concerns include EPS Growth at -12.30%, which may limit upside. Profitability pressure is visible in Return on Equity at 11.30%, Operating Margin at 15.40%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 11.30% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 26.30% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Institutional Own., Market Cap) and negatives (EPS Growth, Price/Sales). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ARM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ARM's Price-to-Sales ratio of 30.68x sits near its historical average of 34.47x (39th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 43% below its historical high of 53.52x set in Jun 2024, and 73% above its historical low of 17.74x in Oct 2023.
WallStSmart Analysis Synopsis
Data-driven financial summary for Arm Holdings plc American Depositary Shares (ARM) · TECHNOLOGY › SEMICONDUCTORS
The Big Picture
Arm Holdings plc American Depositary Shares is a strong growth company balancing expansion with improving profitability. Revenue reached 4.7B with 26% growth year-over-year. Profit margins of 17.2% are healthy, with room for further expansion as the business scales.
Key Findings
Revenue growing at 26% YoY, reaching 4.7B. This pace significantly outperforms most SEMICONDUCTORS peers.
Generating 186M in free cash flow and 365M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Growth sustainability: can Arm Holdings plc American Depositary Shares maintain 26%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 177.6x. Any growth miss could trigger a sharp correction.
Volatility is elevated with a beta of 4.13, so expect amplified moves relative to the broader market.
Sector dynamics: monitor SEMICONDUCTORS industry trends, competitive moves, and regulatory changes that could impact Arm Holdings plc American Depositary Shares.
Bottom Line
Arm Holdings plc American Depositary Shares offers an attractive blend of growth (26% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Arm Holdings plc American Depositary Shares(ARM)
NASDAQ
TECHNOLOGY
SEMICONDUCTORS
USA
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products.