ARM HoldingsMEX:ARMN -1.19%61 EV-to-FCF is 386.04 as of Jun. 25, 2026, which is 113% above its 10-year median of 181.27. GuruFocus rates MEX:ARMN with a GF Score™ of 61/100 and a GF Value™ of MXN3,132.07 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 504 Semiconductors companies, ARM Holdings ranks worse than 92.66% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, ARM Holdings's Enterprise Value is MXN6,708,278 Mil.
ARM Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was MXN17,377 Mil. Therefore, ARM Holdings's EV-to-FCF for today is 386.04.
The historical rank and industry rank for ARM Holdings's EV-to-FCF or its related term are showing as below:
MEX:ARMN'
s EV-to-FCF Range Over the Past 10 Years
Min: 52.25 Med: 181.27 Max: 1100.7
Current: 400.82
During the past 6 years, the highest EV-to-FCF of ARM Holdings was 1100.70. The lowest was 52.25. And the median was 181.27.
MEX:ARMN's EV-to-FCF is ranked worse than 92.66% of 504
companies
in the Semiconductors industry
Industry Median: 51.705
vs MEX:ARMN: 400.82
EV-to-FCF 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-FCF 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 MXN6331.50.
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 MXN15.295.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
ARM Holdings EV-to-FCF Related Terms
ARM Holdings EV-to-FCF Historical Data
* Premium members only.
The historical data trend for ARM Holdings's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where ARM Holdings's EV-to-FCF falls into.
ARM Holdings's current Enterprise Value is MXN6,708,278 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 MXN17,377 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 (MEX:ARMN) has a EV-to-FCF of 386.04 as of Jun. 25, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on ARM Holdings and its competitors. This is 113% above median its historical median of 181.27. Over the past decade, ARM Holdings' EV-to-FCF has ranged from 52.25 to 1,100.70. According to the industry distribution chart, ARM Holdings ranks #467 out of 504 companies in the Semiconductors industry, placing it in the top 92.7%.
Is ARM Holdings' EV-to-FCF too high?
ARM Holdings' current EV-to-FCF of 386.04 is 113% above median its 10-year median of 181.27. Over the past 10 years, this metric has ranged from a low of 52.25 to a high of 1,100.70. The Semiconductors industry median EV-to-FCF is 51.71. ARM Holdings' value of 386.04 is 646.6% above this industry median. Based on the distribution chart, ARM Holdings ranks #467 out of 504 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, ARM Holdings has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' EV-to-FCF compare to TXN and QCOM?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #467 out of 504 companies for EV-to-FCF. This places ARM Holdings in the lower half of its industry. The industry median EV-to-FCF is 51.71. ARM Holdings' value of 386.04 is 646.6% above this benchmark. Historically, ARM Holdings' own EV-to-FCF has ranged from 52.25 to 1,100.70 over the past decade. While the company's 10-year median is 181.27 vs. the industry median of 51.71, 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-FCF for a Semiconductors company?
The median EV-to-FCF among Semiconductors companies is 51.71, based on 504 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current EV-to-FCF of 386.04 is 646.6% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median EV-to-FCF is 51.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current EV-to-FCF is 386.04, which is 113% above median its own 10-year median of 181.27. 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 (MEX:ARMN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN3,132.07, compared to a current price of MXN6,331.50 — trading 102.2% above its estimated fair value. The current EV-to-FCF is 386.04, which is 113% above median its 10-year median of 181.27 and 646.6% above the Semiconductors industry median of 51.71. ARM Holdings' overall GF Score™ is 61/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For ARM Holdings (MEX:ARMN), the current EV-to-FCF is 386.04 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 (MEX:ARMN) Overvalued in 2026?
Based on GuruFocus' analysis, ARM Holdings stock appears to be overvalued.
The current stock price of MXN6,331.50 is trading 102.2% above its estimated GF Value™ of MXN3,132.07.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for MEX:ARMN:
EV-to-FCF: 386.04 (113% above median its 10-year median of 181.27)
GF Value™: MXN3,132.07 vs. price of MXN6,331.50 (102.2% above fair value)
Industry Position: 646.6% above the Semiconductors median (#467 of 504)
No single metric tells the full story. See the MEX:ARMN 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.
61GF Score
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