ARM HoldingsARM -1.37%62 EV-to-EBIT is 376.94 as of Jul. 11, 2026, which is 12% above its 10-year median of 336.30. 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 683 Semiconductors companies, ARM Holdings ranks worse than 96.19% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
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 adds up the quarterly data reported by the company within the most recent 12 months, which was $908 Mil.
* 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 EV-to-EBIT Related Terms
ARM Holdings EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for ARM Holdings's EV-to-EBIT 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 EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where ARM Holdings's EV-to-EBIT falls into.
ARM Holdings's current Enterprise Value is $342,262 Mil.
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.
* 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 EV-to-EBIT of 376.94 as of Jul. 11, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on ARM Holdings and its competitors. This is 12% above median its historical median of 336.30. Over the past decade, ARM Holdings' EV-to-EBIT has ranged from 103.11 to 3,182.27. According to the industry distribution chart, ARM Holdings ranks #657 out of 683 companies in the Semiconductors industry, placing it in the top 96.2%.
Is ARM Holdings' EV-to-EBIT too high?
ARM Holdings' current EV-to-EBIT of 376.94 is 12% above median its 10-year median of 336.30. Over the past 10 years, this metric has ranged from a low of 103.11 to a high of 3,182.27. The Semiconductors industry median EV-to-EBIT is 37.17. ARM Holdings' value of 376.94 is 914.1% above this industry median. Based on the distribution chart, ARM Holdings ranks #657 out of 683 companies in the Semiconductors industry, which is in the bottom quartile 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' EV-to-EBIT compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #657 out of 683 companies for EV-to-EBIT. This places ARM Holdings in the lower half of its industry. The industry median EV-to-EBIT is 37.17. ARM Holdings' value of 376.94 is 914.1% above this benchmark. Historically, ARM Holdings' own EV-to-EBIT has ranged from 103.11 to 3,182.27 over the past decade. While the company's 10-year median is 336.30 vs. the industry median of 37.17, 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 EV-to-EBIT for a Semiconductors company?
The median EV-to-EBIT among Semiconductors companies is 37.17, based on 683 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current EV-to-EBIT of 376.94 is 914.1% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median EV-to-EBIT is 37.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current EV-to-EBIT is 376.94, which is 12% above median its own 10-year median of 336.30. 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 $179.17, compared to a current price of $323.39 — trading 80.5% above its estimated fair value. The current EV-to-EBIT is 376.94, which is 12% above median its 10-year median of 336.30 and 914.1% above the Semiconductors industry median of 37.17. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For ARM Holdings (ARM), the current EV-to-EBIT is 376.94 as of Jul. 11, 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:
EV-to-EBIT: 376.94 (12% above median its 10-year median of 336.30)
GF Value™: $179.17 vs. price of $323.39 (80.5% above fair value)
Industry Position: 914.1% above the Semiconductors median (#657 of 683)
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
Get the complete analysis for ARM
EV-to-EBIT 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 
