ARM HoldingsMEX:ARMN -1.19%61 FCF Yield % is 0.25 as of Jun. 25, 2026, which is 54% below its 10-year median of 0.54. 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 1,029 Semiconductors companies, ARM Holdings ranks better than 55.59% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
ARM Holdings FCF Yield % Related Terms
ARM Holdings FCF Yield % Historical Data
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The historical data trend for ARM Holdings's FCF Yield % 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.
MEX:ARMN vs TXN, QCOM, ADI: FCF Yield % Comparison
For the Semiconductors subindustry, ARM Holdings's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's FCF Yield % distribution charts can be found below:
* The bar in red indicates where ARM Holdings's FCF Yield % falls into.
* 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 FCF Yield % of 0.25 as of Jun. 25, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on ARM Holdings and its competitors. This is 54% below median its historical median of 0.54. Over the past decade, ARM Holdings' FCF Yield % has ranged from 0.09 to 1.84. According to the industry distribution chart, ARM Holdings ranks #457 out of 1029 companies in the Semiconductors industry, placing it in the top 44.4%.
Is ARM Holdings' FCF Yield % too high?
ARM Holdings' current FCF Yield % of 0.25 is 54% below median its 10-year median of 0.54. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 1.84. Based on the distribution chart, ARM Holdings ranks #457 out of 1029 companies in the Semiconductors industry, which is above the industry midpoint. 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' FCF Yield % compare to TXN and QCOM?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #457 out of 1029 companies for FCF Yield %. This puts ARM Holdings in the upper half of its industry. Historically, ARM Holdings' own FCF Yield % has ranged from 0.09 to 1.84 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for a Semiconductors company?
A good FCF Yield % depends on the Semiconductors industry context. However, FCF Yield % 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on ARM Holdings and its competitors. ARM Holdings's current FCF Yield % is 0.25, which is 54% below median its own 10-year median of 0.54. 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 FCF Yield % is 0.25, which is 54% below median its 10-year median of 0.54. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For ARM Holdings (MEX:ARMN), the current FCF Yield % is 0.25 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:
FCF Yield %: 0.25 (54% below median its 10-year median of 0.54)
GF Value™: MXN3,132.07 vs. price of MXN6,331.50 (102.2% above fair value)
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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