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ARM HoldingsARM +1.98%69 EV-to-OCF is 185.19 as of Jul. 17, 2026, which is 28% above its 10-year median of 144.61. GuruFocus rates ARM with a GF Score™ of 69/100 and a GF Value™ of $179.76 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,029 Semiconductors companies, ARM Holdings ranks worse than 93.68% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, ARM Holdings's Enterprise Value is $282,236 Mil.
ARM Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was $1,524 Mil. Therefore, ARM Holdings's EV-to-OCF for today is 185.19.
The historical rank and industry rank for ARM Holdings's EV-to-OCF or its related term are showing as below:
ARM'
s EV-to-OCF Range Over the Past 10 Years
Min: 46.75 Med: 144.61 Max: 438.06
Current: 185.19
During the past 6 years, the highest EV-to-OCF of ARM Holdings was 438.06. The lowest was 46.75. And the median was 144.61.
ARM's EV-to-OCF is ranked worse than 93.68% of 1029
companies
in the Semiconductors industry
Industry Median: 15.47
vs ARM: 185.19
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
ARM Holdings's PE Ratio (TTM) for today is calculated as:
ARM Holdings's share price for today is $267.19.
ARM Holdings's Earnings per Share (Diluted) 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 $0.840.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
ARM Holdings EV-to-OCF Related Terms
ARM Holdings EV-to-OCF Historical Data
* Premium members only.
The historical data trend for ARM Holdings's EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where ARM Holdings's EV-to-OCF falls into.
ARM Holdings's current Enterprise Value is $282,236 Mil.
ARM Holdings's Cash Flow from Operations 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 $1,524 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-OCF of 185.19 as of Jul. 17, 2026. This is 28% above median its historical median of 144.61. Over the past decade, ARM Holdings' EV-to-OCF has ranged from 46.75 to 438.06. According to the industry distribution chart, ARM Holdings ranks #964 out of 1029 companies in the Semiconductors industry, placing it in the top 93.7%.
Is ARM Holdings' EV-to-OCF too high?
ARM Holdings' current EV-to-OCF of 185.19 is 28% above median its 10-year median of 144.61. Over the past 10 years, this metric has ranged from a low of 46.75 to a high of 438.06. The Semiconductors industry median EV-to-OCF is 15.47. ARM Holdings' value of 185.19 is 1097.1% above this industry median. Based on the distribution chart, ARM Holdings ranks #964 out of 1029 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. 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' EV-to-OCF compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #964 out of 1029 companies for EV-to-OCF. This places ARM Holdings in the lower half of its industry. The industry median EV-to-OCF is 15.47. ARM Holdings' value of 185.19 is 1097.1% above this benchmark. Historically, ARM Holdings' own EV-to-OCF has ranged from 46.75 to 438.06 over the past decade. While the company's 10-year median is 144.61 vs. the industry median of 15.47, 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-OCF for a Semiconductors company?
The median EV-to-OCF among Semiconductors companies is 15.47, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current EV-to-OCF of 185.19 is 1097.1% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median EV-to-OCF is 15.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current EV-to-OCF is 185.19, which is 28% above median its own 10-year median of 144.61. 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 $179.76, compared to a current price of $267.19 — trading 48.6% above its estimated fair value. The current EV-to-OCF is 185.19, which is 28% above median its 10-year median of 144.61 and 1097.1% above the Semiconductors industry median of 15.47. 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 EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For ARM Holdings (ARM), the current EV-to-OCF is 185.19 as of Jul. 17, 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 $267.19 is trading 48.6% above its estimated GF Value™ of $179.76.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
EV-to-OCF: 185.19 (28% above median its 10-year median of 144.61)
GF Value™: $179.76 vs. price of $267.19 (48.6% above fair value)
Industry Position: 1097.1% above the Semiconductors median (#964 of 1029)
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
EV-to-OCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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