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ARM HoldingsARM +0.91%69 Equity-to-Asset is 0.77 as of Mar. 2026, which is 15% above its 10-year median of 0.67. GuruFocus rates ARM with a GF Score™ of 69/100 and a GF Value™ of $180.18 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,029 Semiconductors companies, ARM Holdings ranks better than 72.5% on this metric.
Equity to Asset ratio is calculated as total stockholders equity divided by total asset. ARM Holdings's Total Stockholders Equity for the quarter that ended in Mar. 2026 was $8,286 Mil. ARM Holdings's Total Assets for the quarter that ended in Mar. 2026 was $10,703 Mil.
Therefore, ARM Holdings's Equity to Asset Ratio for the quarter that ended in Mar. 2026 was 0.77.
The historical rank and industry rank for ARM Holdings's Equity-to-Asset or its related term are showing as below:
ARM'
s Equity-to-Asset Range Over the Past 10 Years
Min: 0.55 Med: 0.67 Max: 0.77
Current: 0.77
During the past 6 years, the highest Equity to Asset Ratio of ARM Holdings was 0.77. The lowest was 0.55. And the median was 0.67.
ARM's Equity-to-Asset is ranked better than 72.5% of 1029
companies
in the Semiconductors industry
Industry Median: 0.64
vs ARM: 0.77
ARM Holdings (NAS:ARM) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
ARM Holdings Equity-to-Asset Related Terms
ARM Holdings Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for ARM Holdings's Equity-to-Asset 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, MRVL, QCOM: Equity-to-Asset Comparison
For the Semiconductors subindustry, ARM Holdings's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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 Equity-to-Asset vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Equity-to-Asset falls into.
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
ARM Holdings's Equity to Asset Ratio 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.
ARM Holdings (ARM) has a Equity-to-Asset of 0.77 as of Mar. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on ARM Holdings and its competitors. This is 15% above median its historical median of 0.67. Over the past decade, ARM Holdings' Equity-to-Asset has ranged from 0.55 to 0.77. According to the industry distribution chart, ARM Holdings ranks #283 out of 1029 companies in the Semiconductors industry, placing it in the top 27.5%.
Is ARM Holdings' Equity-to-Asset too high?
ARM Holdings' current Equity-to-Asset of 0.77 is 15% above median its 10-year median of 0.67. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 0.77. The Semiconductors industry median Equity-to-Asset is 0.64. ARM Holdings' value of 0.77 is 20.3% above this industry median. Based on the distribution chart, ARM Holdings ranks #283 out of 1029 companies in the Semiconductors industry, which is above 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' Equity-to-Asset compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #283 out of 1029 companies for Equity-to-Asset. This puts ARM Holdings in the upper half of its industry. The industry median Equity-to-Asset is 0.64. ARM Holdings' value of 0.77 is 20.3% above this benchmark. Historically, ARM Holdings' own Equity-to-Asset has ranged from 0.55 to 0.77 over the past decade. While the company's 10-year median is 0.67 vs. the industry median of 0.64, 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 Equity-to-Asset for a Semiconductors company?
The median Equity-to-Asset among Semiconductors companies is 0.64, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Equity-to-Asset of 0.77 is 20.3% 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 Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median Equity-to-Asset is 0.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Equity-to-Asset is 0.77, which is 15% above median its own 10-year median of 0.67. 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 $180.18, compared to a current price of $269.61 — trading 49.6% above its estimated fair value. The current Equity-to-Asset is 0.77, which is 15% above median its 10-year median of 0.67 and 20.3% above the Semiconductors industry median of 0.64. 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 Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For ARM Holdings (ARM), the current Equity-to-Asset is 0.77 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 $269.61 is trading 49.6% above its estimated GF Value™ of $180.18.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Equity-to-Asset: 0.77 (15% above median its 10-year median of 0.67)
GF Value™: $180.18 vs. price of $269.61 (49.6% above fair value)
Industry Position: 20.3% above the Semiconductors median (#283 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
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