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ARM HoldingsARM -1.48%69 Earnings Yield (Joel Greenblatt) % is 0.58% as of Mar. 2026, which is 93% above its 10-year median of 0.30. GuruFocus rates ARM with a GF Score™ of 69/100 and a GF Value™ of $179.66 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,024 Semiconductors companies, ARM Holdings ranks worse than 62.89% on this metric.
ARM Holdings's Enterprise Value for the quarter that ended in Mar. 2026 was $157,826 Mil.
ARM Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $908 Mil. ARM Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was 0.58%.
The historical rank and industry rank for ARM Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
ARM'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.03 Med: 0.3 Max: 0.97
Current: 0.31
During the past 6 years, the highest Earnings Yield (Joel Greenblatt) of ARM Holdings was 0.97%. The lowest was 0.03%. And the median was 0.30%.
ARM's Earnings Yield (Joel Greenblatt) % is ranked worse than 62.89% of 1024
companies
in the Semiconductors industry
Industry Median: 1.14
vs ARM: 0.31
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. ARM Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
ARM Holdings (NAS:ARM) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
ARM Holdings Earnings Yield (Joel Greenblatt) % Related Terms
ARM Holdings Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for ARM Holdings's Earnings Yield (Joel Greenblatt) % 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.
ARM Holdings Earnings Yield (Joel Greenblatt) % Chart
ARM vs TXN, MRVL, QCOM: Earnings Yield (Joel Greenblatt) % Comparison
For the Semiconductors subindustry, ARM Holdings's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Earnings Yield (Joel Greenblatt) % falls into.
ARM Holdings Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
ARM Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2026 is calculated as
ARM Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $908 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 0.58% mean?
ARM Holdings (ARM) has a Earnings Yield (Joel Greenblatt) % of 0.58% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on ARM Holdings and its competitors. This is 93% above median its historical median of 0.30. Over the past decade, ARM Holdings' Earnings Yield (Joel Greenblatt) % has ranged from 0.03 to 0.97. According to the industry distribution chart, ARM Holdings ranks #644 out of 1024 companies in the Semiconductors industry, placing it in the top 62.9%.
Is ARM Holdings' Earnings Yield (Joel Greenblatt) % too high?
ARM Holdings' current Earnings Yield (Joel Greenblatt) % of 0.58% is 93% above median its 10-year median of 0.30. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.97. The Semiconductors industry median Earnings Yield (Joel Greenblatt) % is 1.14. ARM Holdings' value of 0.58% is 49.1% below this industry median. Based on the distribution chart, ARM Holdings ranks #644 out of 1024 companies in the Semiconductors industry, which is below 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' Earnings Yield (Joel Greenblatt) % compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #644 out of 1024 companies for Earnings Yield (Joel Greenblatt) %. This places ARM Holdings in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 1.14. ARM Holdings' value of 0.58% is 49.1% below this benchmark. Historically, ARM Holdings' own Earnings Yield (Joel Greenblatt) % has ranged from 0.03 to 0.97 over the past decade. While the company's 10-year median is 0.30 vs. the industry median of 1.14, 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 Earnings Yield (Joel Greenblatt) % for a Semiconductors company?
The median Earnings Yield (Joel Greenblatt) % among Semiconductors companies is 1.14, based on 1,024 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Earnings Yield (Joel Greenblatt) % of 0.58% is 49.1% 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median Earnings Yield (Joel Greenblatt) % is 1.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Earnings Yield (Joel Greenblatt) % is 0.58%, which is 93% above median its own 10-year median of 0.30. 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 $179.66, compared to a current price of $277.01 — trading 54.2% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 0.58%, which is 93% above median its 10-year median of 0.30 and 49.1% below the Semiconductors industry median of 1.14. 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 Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For ARM Holdings (ARM), the current Earnings Yield (Joel Greenblatt) % is 0.58% 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 $277.01 is trading 54.2% above its estimated GF Value™ of $179.66.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Earnings Yield (Joel Greenblatt) %: 0.58% (93% above median its 10-year median of 0.30)
GF Value™: $179.66 vs. price of $277.01 (54.2% above fair value)
Industry Position: 49.1% below the Semiconductors median (#644 of 1024)
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
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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