(ARM) Arm Holdings American - Ratings and Ratios
Exchange: NASDAQ •
Country: United Kingdom •
Currency: USD •
Type: Common Stock •
ISIN: US0420682058
Cpu, Gpu, System Ip, Software, Tools
Dividends
Currently no dividends paid| Risk via 10d forecast | |
|---|---|
| Volatility | 62.5% |
| Value at Risk 5%th | 96.2% |
| Relative Tail Risk | -6.42% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.24 |
| Alpha | -27.35 |
| CAGR/Max DD | 0.80 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.492 |
| Beta | 2.220 |
| Beta Downside | 1.908 |
| Drawdowns 3y | |
|---|---|
| Max DD | 53.97% |
| Mean DD | 20.48% |
| Median DD | 20.79% |
Description: ARM Arm Holdings American December 01, 2025
Arm Holdings plc designs, develops, and licenses CPU architectures, GPUs, and related system-level IP to semiconductor firms and OEMs, monetizing its technology through royalty and upfront licensing fees rather than selling physical chips.
The company’s IP underpins a wide array of end-markets-including smartphones, automotive electronics, data-center accelerators, consumer devices, and the rapidly expanding Internet-of-Things ecosystem-and it operates globally across the United States, China, Taiwan, South Korea, and other regions.
Key recent metrics (Q2 2024) show licensing revenue of approximately $1.3 billion, a year-over-year growth rate of ~12 % driven by AI-focused accelerator licenses, and an industry-typical gross margin above 90 % thanks to the low-cost, high-margin nature of IP licensing. The broader semiconductor sector is being reshaped by three macro drivers: the shift toward custom silicon for AI workloads, heightened demand for automotive safety-critical processors, and regulatory pressure (e.g., EU’s “Silicon Chips Act”) that favors domestically licensed designs.
For a deeper, data-driven view of how Arm’s licensing dynamics compare to peers, you may find the analytics on ValueRay worth a quick look.
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (830.0m TTM) > 0 and > 6% of Revenue (6% = 264.7m TTM) |
| FCFTA 0.12 (>2.0%) and ΔFCFTA 5.29pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 99.95% (prev 89.53%; Δ 10.42pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.16 (>3.0%) and CFO 1.58b > Net Income 830.0m (YES >=105%, WARN >=100%) |
| Net Debt (-2.09b) to EBITDA (1.07b) ratio: -1.95 <= 3.0 (WARN <= 3.5) |
| Current Ratio 5.59 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (1.07b) change vs 12m ago 0.56% (target <= -2.0% for YES) |
| Gross Margin 95.63% (prev 93.62%; Δ 2.00pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 49.58% (prev 43.72%; Δ 5.87pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| error: Interest Coverage Ratio cannot be calculated (needs EBITDA TTM and Interest Expense TTM) |
Altman Z'' 6.91
| (A) 0.45 = (Total Current Assets 5.37b - Total Current Liabilities 960.0m) / Total Assets 9.71b |
| (B) 0.40 = Retained Earnings (Balance) 3.91b / Total Assets 9.71b |
| (C) 0.10 = EBIT TTM 860.0m / Avg Total Assets 8.90b |
| (D) 1.87 = Book Value of Equity 4.31b / Total Liabilities 2.30b |
| Total Rating: 6.91 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 67.87
| 1. Piotroski 5.50pt |
| 2. FCF Yield 0.84% |
| 3. FCF Margin 25.93% |
| 4. Debt/Equity 0.06 |
| 5. Debt/Ebitda -1.95 |
| 6. ROIC - WACC (= -4.36)% |
| 7. RoE 12.00% |
| 8. Rev. Trend 91.98% |
| 9. EPS Trend 60.37% |
What is the price of ARM shares?
As of December 07, 2025, the stock is trading at USD 141.31 with a total of 2,444,893 shares traded.
Over the past week, the price has changed by +4.24%, over one month by -11.79%, over three months by +2.27% and over the past year by +2.44%.
Over the past week, the price has changed by +4.24%, over one month by -11.79%, over three months by +2.27% and over the past year by +2.44%.
Is ARM a buy, sell or hold?
Arm Holdings American has received a consensus analysts rating of 3.80.
Therefor, it is recommend to hold ARM.
- Strong Buy: 17
- Buy: 5
- Hold: 14
- Sell: 1
- Strong Sell: 3
What are the forecasts/targets for the ARM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 168 | 18.9% |
| Analysts Target Price | 168 | 18.9% |
| ValueRay Target Price | 154.9 | 9.6% |
ARM Fundamental Data Overview November 25, 2025
Market Cap USD = 139.60b (139.60b USD * 1.0 USD.USD)
P/E Trailing = 168.6795
P/E Forward = 75.188
P/S = 31.64
P/B = 18.8464
P/EG = 2.3402
Beta = 4.132
Revenue TTM = 4.41b USD
EBIT TTM = 860.0m USD
EBITDA TTM = 1.07b USD
Long Term Debt = 429.0m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 56.0m USD (from shortTermDebt, last quarter)
Debt = 429.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -2.09b USD (from netDebt column, last quarter)
Enterprise Value = 136.77b USD (139.60b + Debt 429.0m - CCE 3.26b)
Interest Coverage Ratio = unknown (Ebit TTM 860.0m / Interest Expense TTM 0.0)
FCF Yield = 0.84% (FCF TTM 1.14b / Enterprise Value 136.77b)
FCF Margin = 25.93% (FCF TTM 1.14b / Revenue TTM 4.41b)
Net Margin = 18.81% (Net Income TTM 830.0m / Revenue TTM 4.41b)
Gross Margin = 95.63% ((Revenue TTM 4.41b - Cost of Revenue TTM 193.0m) / Revenue TTM)
Gross Margin QoQ = 97.44% (prev 94.30%)
Tobins Q-Ratio = 14.09 (Enterprise Value 136.77b / Total Assets 9.71b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 429.0m)
Taxrate = 21.19% (64.0m / 302.0m)
NOPAT = 677.7m (EBIT 860.0m * (1 - 21.19%))
Current Ratio = 5.59 (Total Current Assets 5.37b / Total Current Liabilities 960.0m)
Debt / Equity = 0.06 (Debt 429.0m / totalStockholderEquity, last quarter 7.41b)
Debt / EBITDA = -1.95 (Net Debt -2.09b / EBITDA 1.07b)
Debt / FCF = -1.83 (Net Debt -2.09b / FCF TTM 1.14b)
Total Stockholder Equity = 6.92b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.55% (Net Income 830.0m / Total Assets 9.71b)
RoE = 12.00% (Net Income TTM 830.0m / Total Stockholder Equity 6.92b)
RoCE = 11.71% (EBIT 860.0m / Capital Employed (Equity 6.92b + L.T.Debt 429.0m))
RoIC = 9.80% (NOPAT 677.7m / Invested Capital 6.92b)
WACC = 14.16% (E(139.60b)/V(140.02b) * Re(14.20%) + D(429.0m)/V(140.02b) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 14.20% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.95%
[DCF Debug] Terminal Value 56.47% ; FCFE base≈896.4m ; Y1≈802.8m ; Y5≈683.1m
Fair Price DCF = 5.40 (DCF Value 5.73b / Shares Outstanding 1.06b; 5y FCF grow -12.91% → 3.0% )
EPS Correlation: 60.37 | EPS CAGR: 24.18% | SUE: 2.40 | # QB: 1
Revenue Correlation: 91.98 | Revenue CAGR: 16.44% | SUE: 3.08 | # QB: 1
EPS current Year (2026-03-31): EPS=1.72 | Chg30d=+0.028 | Revisions Net=+9 | Growth EPS=+5.4% | Growth Revenue=+21.1%
EPS next Year (2027-03-31): EPS=2.27 | Chg30d=+0.035 | Revisions Net=+5 | Growth EPS=+32.0% | Growth Revenue=+21.3%
P/E Trailing = 168.6795
P/E Forward = 75.188
P/S = 31.64
P/B = 18.8464
P/EG = 2.3402
Beta = 4.132
Revenue TTM = 4.41b USD
EBIT TTM = 860.0m USD
EBITDA TTM = 1.07b USD
Long Term Debt = 429.0m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 56.0m USD (from shortTermDebt, last quarter)
Debt = 429.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -2.09b USD (from netDebt column, last quarter)
Enterprise Value = 136.77b USD (139.60b + Debt 429.0m - CCE 3.26b)
Interest Coverage Ratio = unknown (Ebit TTM 860.0m / Interest Expense TTM 0.0)
FCF Yield = 0.84% (FCF TTM 1.14b / Enterprise Value 136.77b)
FCF Margin = 25.93% (FCF TTM 1.14b / Revenue TTM 4.41b)
Net Margin = 18.81% (Net Income TTM 830.0m / Revenue TTM 4.41b)
Gross Margin = 95.63% ((Revenue TTM 4.41b - Cost of Revenue TTM 193.0m) / Revenue TTM)
Gross Margin QoQ = 97.44% (prev 94.30%)
Tobins Q-Ratio = 14.09 (Enterprise Value 136.77b / Total Assets 9.71b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 429.0m)
Taxrate = 21.19% (64.0m / 302.0m)
NOPAT = 677.7m (EBIT 860.0m * (1 - 21.19%))
Current Ratio = 5.59 (Total Current Assets 5.37b / Total Current Liabilities 960.0m)
Debt / Equity = 0.06 (Debt 429.0m / totalStockholderEquity, last quarter 7.41b)
Debt / EBITDA = -1.95 (Net Debt -2.09b / EBITDA 1.07b)
Debt / FCF = -1.83 (Net Debt -2.09b / FCF TTM 1.14b)
Total Stockholder Equity = 6.92b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.55% (Net Income 830.0m / Total Assets 9.71b)
RoE = 12.00% (Net Income TTM 830.0m / Total Stockholder Equity 6.92b)
RoCE = 11.71% (EBIT 860.0m / Capital Employed (Equity 6.92b + L.T.Debt 429.0m))
RoIC = 9.80% (NOPAT 677.7m / Invested Capital 6.92b)
WACC = 14.16% (E(139.60b)/V(140.02b) * Re(14.20%) + D(429.0m)/V(140.02b) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 14.20% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.95%
[DCF Debug] Terminal Value 56.47% ; FCFE base≈896.4m ; Y1≈802.8m ; Y5≈683.1m
Fair Price DCF = 5.40 (DCF Value 5.73b / Shares Outstanding 1.06b; 5y FCF grow -12.91% → 3.0% )
EPS Correlation: 60.37 | EPS CAGR: 24.18% | SUE: 2.40 | # QB: 1
Revenue Correlation: 91.98 | Revenue CAGR: 16.44% | SUE: 3.08 | # QB: 1
EPS current Year (2026-03-31): EPS=1.72 | Chg30d=+0.028 | Revisions Net=+9 | Growth EPS=+5.4% | Growth Revenue=+21.1%
EPS next Year (2027-03-31): EPS=2.27 | Chg30d=+0.035 | Revisions Net=+5 | Growth EPS=+32.0% | Growth Revenue=+21.3%
Additional Sources for ARM Stock
News:
Wall Street Journal |
Benzinga |
Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle