ARM HoldingsARM -1.37%62 Debt-to-Equity is 0.06 as of Mar. 2026, which is at its 10-year median of 0.06. GuruFocus rates ARM with a GF Score™ of 62/100 and a GF Value™ of $179.17 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 900 Semiconductors companies, ARM Holdings ranks better than 79.33% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for ARM Holdings's Debt-to-Equity or its related term are showing as below:
ARM'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.04 Med: 0.06 Max: 0.07
Current: 0.06
During the past 6 years, the highest Debt-to-Equity Ratio of ARM Holdings was 0.07. The lowest was 0.04. And the median was 0.06.
ARM's Debt-to-Equity is ranked better than 79.33% of 900
companies
in the Semiconductors industry
Industry Median: 0.25
vs ARM: 0.06
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
ARM Holdings Debt-to-Equity Related Terms
ARM Holdings Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for ARM Holdings's Debt-to-Equity 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-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Debt-to-Equity 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 Debt-to-Equity of 0.06 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on ARM Holdings and its competitors. This is near median its historical median of 0.06. Over the past decade, ARM Holdings' Debt-to-Equity has ranged from 0.04 to 0.07. According to the industry distribution chart, ARM Holdings ranks #186 out of 900 companies in the Semiconductors industry, placing it in the top 20.7%.
Is ARM Holdings' Debt-to-Equity too high?
ARM Holdings' current Debt-to-Equity of 0.06 is near median its 10-year median of 0.06. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 0.07. The Semiconductors industry median Debt-to-Equity is 0.25. ARM Holdings' value of 0.06 is 76% below this industry median. Based on the distribution chart, ARM Holdings ranks #186 out of 900 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 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' Debt-to-Equity compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #186 out of 900 companies for Debt-to-Equity. This places ARM Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Debt-to-Equity is 0.25. ARM Holdings' value of 0.06 is 76% below this benchmark. Historically, ARM Holdings' own Debt-to-Equity has ranged from 0.04 to 0.07 over the past decade. While the company's 10-year median is 0.06 vs. the industry median of 0.25, 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-Equity for a Semiconductors company?
The median Debt-to-Equity among Semiconductors companies is 0.25, based on 900 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Debt-to-Equity of 0.06 is 76% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median Debt-to-Equity is 0.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Debt-to-Equity is 0.06, which is near median its own 10-year median of 0.06. 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 $179.17, compared to a current price of $323.39 — trading 80.5% above its estimated fair value. The current Debt-to-Equity is 0.06, which is near median its 10-year median of 0.06 and 76% below the Semiconductors industry median of 0.25. ARM Holdings' overall GF Score™ is 62/100 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For ARM Holdings (ARM), the current Debt-to-Equity is 0.06 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 $323.39 is trading 80.5% above its estimated GF Value™ of $179.17.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Debt-to-Equity: 0.06 (near median its 10-year median of 0.06)
GF Value™: $179.17 vs. price of $323.39 (80.5% above fair value)
Industry Position: 76% below the Semiconductors median (#186 of 900)
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.
62GF Score
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