ARM HoldingsARM +2.21%69 Debt-to-EBITDA is 0.22 as of Mar. 2026, which is 37% below its 10-year median of 0.35. GuruFocus rates ARM with a GF Score™ of 69/100 and a GF Value™ of $178.68 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 718 Semiconductors companies, ARM Holdings ranks better than 71.31% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for ARM Holdings's Debt-to-EBITDA or its related term are showing as below:
ARM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.26 Med: 0.35 Max: 0.81
Current: 0.4
During the past 6 years, the highest Debt-to-EBITDA Ratio of ARM Holdings was 0.81. The lowest was 0.26. And the median was 0.35.
ARM's Debt-to-EBITDA is ranked better than 71.31% of 718
companies
in the Semiconductors industry
Industry Median: 1.445
vs ARM: 0.40
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
ARM Holdings Debt-to-EBITDA Related Terms
ARM Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for ARM Holdings's Debt-to-EBITDA 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.
For the Semiconductors subindustry, ARM Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
ARM Holdings (ARM) has a Debt-to-EBITDA of 0.22 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on ARM Holdings. This is 37% below median its historical median of 0.35. Over the past decade, ARM Holdings' Debt-to-EBITDA has ranged from 0.26 to 0.81. According to the industry distribution chart, ARM Holdings ranks #206 out of 718 companies in the Semiconductors industry, placing it in the top 28.7%.
Is ARM Holdings' Debt-to-EBITDA too high?
ARM Holdings' current Debt-to-EBITDA of 0.22 is 37% below median its 10-year median of 0.35. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 0.81. The Semiconductors industry median Debt-to-EBITDA is 1.45. ARM Holdings' value of 0.22 is 84.8% below this industry median. Based on the distribution chart, ARM Holdings ranks #206 out of 718 companies in the Semiconductors industry, which is above the industry midpoint. Overall, ARM Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' Debt-to-EBITDA compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #206 out of 718 companies for Debt-to-EBITDA. This puts ARM Holdings in the upper half of its industry. The industry median Debt-to-EBITDA is 1.45. ARM Holdings' value of 0.22 is 84.8% below this benchmark. Historically, ARM Holdings' own Debt-to-EBITDA has ranged from 0.26 to 0.81 over the past decade. While the company's 10-year median is 0.35 vs. the industry median of 1.45, ARM Holdings has consistently been below 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 Debt-to-EBITDA for a Semiconductors company?
The median Debt-to-EBITDA among Semiconductors companies is 1.45, based on 718 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Debt-to-EBITDA of 0.22 is 84.8% below 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on ARM Holdings. For the Semiconductors industry, the median Debt-to-EBITDA is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Debt-to-EBITDA is 0.22, which is 37% below median its own 10-year median of 0.35. 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 $178.68, compared to a current price of $322.24 — trading 80.3% above its estimated fair value. The current Debt-to-EBITDA is 0.22, which is 37% below median its 10-year median of 0.35 and 84.8% below the Semiconductors industry median of 1.45. ARM Holdings' overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For ARM Holdings (ARM), the current Debt-to-EBITDA is 0.22 as of Mar. 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 $322.24 is trading 80.3% above its estimated GF Value™ of $178.68.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Debt-to-EBITDA: 0.22 (37% below median its 10-year median of 0.35)
GF Value™: $178.68 vs. price of $322.24 (80.3% above fair value)
Industry Position: 84.8% below the Semiconductors median (#206 of 718)
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.
69GF Score
Get the complete analysis for ARM
Debt-to-EBITDA 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 
