Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. ARM Holdings's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $0 Mil. ARM Holdings's average total debt for the quarter that ended in Mar. 2026 was $459 Mil. Therefore, ARM Holdings's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 0.00%.
ARM Holdings (NAS:ARM) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
ARM Holdings Effective Interest Rate on Debt % Related Terms
ARM Holdings Effective Interest Rate on Debt % Historical Data
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The historical data trend for ARM Holdings's Effective Interest Rate on 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.
ARM Holdings Effective Interest Rate on Debt % Chart
ARM vs TXN, MRVL, QCOM: Effective Interest Rate on Debt % Comparison
For the Semiconductors subindustry, ARM Holdings's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on 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 Effective Interest Rate on Debt % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Effective Interest Rate on 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.
In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 0.00% mean?
ARM Holdings (ARM) has a Effective Interest Rate on Debt % of 0.00% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on ARM Holdings and its competitors.
Is ARM Holdings' Effective Interest Rate on Debt % too high?
ARM Holdings' current Effective Interest Rate on Debt % is 0.00%. 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' Effective Interest Rate on Debt % compare to TXN and MRVL?
ARM Holdings' Effective Interest Rate on Debt % of 0.00% can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Semiconductors company?
A good Effective Interest Rate on Debt % depends on the Semiconductors industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on ARM Holdings and its competitors. ARM Holdings's current Effective Interest Rate on Debt % is 0.00%. 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 $177.73, compared to a current price of $354.68 — trading 99.6% above its estimated fair value. The current Effective Interest Rate on Debt % is 0.00%. 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 Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For ARM Holdings (ARM), the current Effective Interest Rate on Debt % is 0.00% 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 $354.68 is trading 99.6% above its estimated GF Value™ of $177.73.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Effective Interest Rate on Debt %: 0.00%
GF Value™: $177.73 vs. price of $354.68 (99.6% above fair value)
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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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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