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ARM HoldingsARM -1.13%72 3-Year Book Growth Rate is 25.40% as of Jun. 2026, which is 5% above its 10-year median of 24.30. GuruFocus rates ARM with a GF Score™ of 72/100 and a GF Value™ of $190.08 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 986 Semiconductors companies, ARM Holdings ranks better than 87.12% on this metric.
During the past 12 months, ARM Holdings's average Book Value per Share Growth Rate was 22.20% per year.
During the past 3 years, the average Book Value per Share Growth Rate was 25.40% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Book Value per Share growth rate.
During the past 6 years, the highest 3-Year average Book Value per Share Growth Rate of ARM Holdings was 25.40% per year. The lowest was 23.20% per year. And the median was 24.30% per year.
ARM Holdings (NAS:ARM) 3-Year Book Growth Rate Explanation
Book Value per Share is the ratio of equity available to common shareholders divided by the shares outstanding. Book value per share effectively indicates a firm's net asset value on a per-share basis. It can be used by investors to gauge whether a stock price is undervalued by comparing it to the firm's market value per share. Theoretically, it is what the shareholders will receive if the company is liquidated.
ARM Holdings 3-Year Book Growth Rate Related Terms
ARM vs TXN, ADI, QCOM: 3-Year Book Growth Rate Comparison
For the Semiconductors subindustry, ARM Holdings's 3-Year Book Growth Rate, along with its competitors' market caps and 3-Year Book Growth Rate data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ARM Holdings 3-Year Book Growth Rate vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's 3-Year Book Growth Rate distribution charts can be found below:
* The bar in red indicates where ARM Holdings's 3-Year Book Growth Rate falls into.
This is the 3-year average growth rate of Book Value per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Book Value per Share growth rate.
What does a 3-Year Book Growth Rate of 25.40% mean?
ARM Holdings (ARM) has a 3-Year Book Growth Rate of 25.40% as of Jun. 2026. 3-Year Book Growth Rate is the 3-year average growth rate of Book Value per Share. View historical data for ARM Holdings and its competitors. This is near median its historical median of 24.30. Over the past decade, ARM Holdings' 3-Year Book Growth Rate has ranged from 23.20 to 25.40. According to the industry distribution chart, ARM Holdings ranks #127 out of 986 companies in the Semiconductors industry, placing it in the top 12.9%.
Is ARM Holdings' 3-Year Book Growth Rate too high?
ARM Holdings' current 3-Year Book Growth Rate of 25.40% is near median its 10-year median of 24.30. Over the past 10 years, this metric has ranged from a low of 23.20 to a high of 25.40. The Semiconductors industry median 3-Year Book Growth Rate is 4.40. ARM Holdings' value of 25.40% is 477.3% above this industry median. Based on the distribution chart, ARM Holdings ranks #127 out of 986 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, ARM Holdings has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' 3-Year Book Growth Rate compare to TXN and ADI?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #127 out of 986 companies for 3-Year Book Growth Rate. This places ARM Holdings in the top 13% of its industry — outperforming the majority of peers. The industry median 3-Year Book Growth Rate is 4.40. ARM Holdings' value of 25.40% is 477.3% above this benchmark. Historically, ARM Holdings' own 3-Year Book Growth Rate has ranged from 23.20 to 25.40 over the past decade. While the company's 10-year median is 24.30 vs. the industry median of 4.40, ARM Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Book Growth Rate for a Semiconductors company?
The median 3-Year Book Growth Rate among Semiconductors companies is 4.40, based on 986 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year Book Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year Book Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current 3-Year Book Growth Rate of 25.40% is 477.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Book Growth Rate mean?
A high 3-Year Book Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year Book Growth Rate is the 3-year average growth rate of Book Value per Share. View historical data for ARM Holdings and its competitors. For the Semiconductors industry, the median 3-Year Book Growth Rate is 4.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current 3-Year Book Growth Rate is 25.40%, which is near median its own 10-year median of 24.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARM Holdings stock overvalued right now?
Based on GuruFocus' analysis, ARM Holdings (ARM) is currently considered Significantly Overvalued. The stock's GF Value™ is $190.08, compared to a current price of $246.53 — trading 29.7% above its estimated fair value. The current 3-Year Book Growth Rate is 25.40%, which is near median its 10-year median of 24.30 and 477.3% above the Semiconductors industry median of 4.40. ARM Holdings' overall GF Score™ is 72/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Book Growth Rate calculated?
3-Year Book Growth Rate is calculated from a company's financial statements. For ARM Holdings (ARM), the current 3-Year Book Growth Rate is 25.40% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ARM Holdings (ARM) Overvalued in 2026?
Based on GuruFocus' analysis, ARM Holdings stock appears to be overvalued.
The current stock price of $246.53 is trading 29.7% above its estimated GF Value™ of $190.08.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
3-Year Book Growth Rate: 25.40% (near median its 10-year median of 24.30)
GF Value™: $190.08 vs. price of $246.53 (29.7% above fair value)
Industry Position: 477.3% above the Semiconductors median (#127 of 986)
No single metric tells the full story. See the ARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arm Holdings is the IP owner and developer of the Arm architecture, which is used in 99% of the world's smartphone CPU cores. It also has high market share in other battery-powered devices like wearables, tablets, and sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allow them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped. In 2026, Arm announced the launch of its own CPU products on top of its existing royalty business.
72GF Score
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