Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, ARM Holdings's Enterprise Value is $368,302 Mil.
ARM Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $908 Mil. Therefore, ARM Holdings's EV-to-EBIT ratio for today is 405.62.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, ARM Holdings's Enterprise Value is $368,302 Mil.
ARM Holdings's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $1,157 Mil. Therefore, ARM Holdings's EV-to-EBITDA ratio for today is 318.32.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, ARM Holdings's Enterprise Value is $368,302 Mil.
ARM Holdings's Revenue for the trailing twelve months (TTM) ended in Mar. 2026 was $4,920 Mil. Therefore, ARM Holdings's EV-to-Revenue ratio for today is 74.86.
EV-to-FCF is calculated as Enterprise Value divided by its Free Cash Flow. As of today, ARM Holdings's Enterprise Value is $368,302 Mil.
ARM Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $949 Mil. Therefore, ARM Holdings's EV-to-FCF ratio for today is 388.09.
*** Please note that the current Enterprise Value is calculated using the current market capitalization and the most recently available financial data. If key financial fields—Long-Term Debt & Capital Lease Obligation and Short-Term Debt & Capital Lease Obligation—are recorded as null in the latest reporting period, our data vendor will default to using data from the prior period with valid entries.
ARM Holdings (NAS:ARM) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
ARM Holdings's current Enterprise Value is $368,302 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.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
ARM Holdings's current Enterprise Value is $368,302 Mil.
ARM Holdings's EBITDA 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 $1,157 Mil.
ARM Holdings's current Enterprise Value is $368,302 Mil.
ARM Holdings's Revenue 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 $4,920 Mil.
ARM Holdings's current Enterprise Value is $368,302 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.
ARM Holdings's current Enterprise Value is $368,302 Mil.
ARM Holdings's Free Cash Flow 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 $949 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 Enterprise Value Related Terms
ARM Holdings Enterprise Value Historical Data
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The historical data trend for ARM Holdings's Enterprise Value 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 vs TXN, QCOM, ADI: Enterprise Value Comparison
For the Semiconductors subindustry, ARM Holdings's Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Enterprise Value distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Enterprise Value falls into.
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
ARM Holdings's Enterprise Value for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
What does a Enterprise Value of $368,302 Mil mean?
ARM Holdings (ARM) has a Enterprise Value of $368,302 Mil as of Jun. 25, 2026. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on ARM Holdings and its competitors.
Is ARM Holdings' Enterprise Value too high?
ARM Holdings' current Enterprise Value is $368,302 Mil. 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' Enterprise Value compare to TXN and QCOM?
ARM Holdings' Enterprise Value of $368,302 Mil 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 Enterprise Value for a Semiconductors company?
A good Enterprise Value depends on the Semiconductors industry context. However, Enterprise Value 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 Enterprise Value mean?
A high Enterprise Value can signal that a stock is expensive relative to its fundamentals. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on ARM Holdings and its competitors. ARM Holdings's current Enterprise Value is $368,302 Mil. 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 $177.63, compared to a current price of $347.77 — trading 95.8% above its estimated fair value. The current Enterprise Value is $368,302 Mil. 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 Enterprise Value calculated?
Enterprise Value is calculated from a company's financial statements. For ARM Holdings (ARM), the current Enterprise Value is $368,302 Mil as of Jun. 25, 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 $347.77 is trading 95.8% above its estimated GF Value™ of $177.63.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Enterprise Value: $368,302 Mil
GF Value™: $177.63 vs. price of $347.77 (95.8% 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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