Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ARM HoldingsARM +0.55%72 Cash-to-Debt is 8.38 as of Jun. 2026, which is 7% below its 10-year median of 8.97. GuruFocus rates ARM with a GF Score™ of 72/100 and a GF Value™ of $190.20 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,014 Semiconductors companies, ARM Holdings ranks better than 73.57% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. ARM Holdings's cash to debt ratio for the quarter that ended in Jun. 2026 was 8.38.
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. Here we can see, ARM Holdingscould pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for ARM Holdings's Cash-to-Debt or its related term are showing as below:
ARM'
s Cash-to-Debt Range Over the Past 10 Years
Min: 6.26 Med: 8.97 Max: 12.93
Current: 8.38
During the past 6 years, ARM Holdings's highest Cash to Debt Ratio was 12.93. The lowest was 6.26. And the median was 8.97.
ARM's Cash-to-Debt is ranked better than 73.57% of 1014
companies
in the Semiconductors industry
Industry Median: 1.615
vs ARM: 8.38
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
ARM Holdings Cash-to-Debt Related Terms
ARM Holdings Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for ARM Holdings's Cash-to-Debt can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Semiconductors subindustry, ARM Holdings's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt 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 Cash-to-Debt vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Cash-to-Debt falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ARM Holdings (ARM) has a Cash-to-Debt of 8.38 as of Jun. 2026. This is near median its historical median of 8.97. Over the past decade, ARM Holdings' Cash-to-Debt has ranged from 6.26 to 12.93. According to the industry distribution chart, ARM Holdings ranks #268 out of 1014 companies in the Semiconductors industry, placing it in the top 26.4%.
Is ARM Holdings' Cash-to-Debt too high?
ARM Holdings' current Cash-to-Debt of 8.38 is near median its 10-year median of 8.97. Over the past 10 years, this metric has ranged from a low of 6.26 to a high of 12.93. The Semiconductors industry median Cash-to-Debt is 1.62. ARM Holdings' value of 8.38 is 418.9% above this industry median. Based on the distribution chart, ARM Holdings ranks #268 out of 1014 companies in the Semiconductors industry, which is above the industry midpoint. 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' Cash-to-Debt compare to TXN and ADI?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #268 out of 1014 companies for Cash-to-Debt. This puts ARM Holdings in the upper half of its industry. The industry median Cash-to-Debt is 1.62. ARM Holdings' value of 8.38 is 418.9% above this benchmark. Historically, ARM Holdings' own Cash-to-Debt has ranged from 6.26 to 12.93 over the past decade. While the company's 10-year median is 8.97 vs. the industry median of 1.62, 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 Cash-to-Debt for a Semiconductors company?
The median Cash-to-Debt among Semiconductors companies is 1.62, based on 1,014 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Cash-to-Debt of 8.38 is 418.9% 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 Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median Cash-to-Debt is 1.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Cash-to-Debt is 8.38, which is near median its own 10-year median of 8.97. 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 $190.20, compared to a current price of $250.72 — trading 31.8% above its estimated fair value. The current Cash-to-Debt is 8.38, which is near median its 10-year median of 8.97 and 418.9% above the Semiconductors industry median of 1.62. 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 Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For ARM Holdings (ARM), the current Cash-to-Debt is 8.38 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 $250.72 is trading 31.8% above its estimated GF Value™ of $190.20.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Cash-to-Debt: 8.38 (near median its 10-year median of 8.97)
GF Value™: $190.20 vs. price of $250.72 (31.8% above fair value)
Industry Position: 418.9% above the Semiconductors median (#268 of 1014)
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
Get the complete analysis for ARM
Cash-to-Debt is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ARM has been successfully added to your 
