ARM HoldingsARM -6.58%62 Forward PE Ratio is 144.29 as of Jul. 02, 2026. GuruFocus rates ARM with a GF Score™ of 62/100 and a GF Value™ of $178.36 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 545 Semiconductors companies, ARM Holdings ranks worse than 90.28% on this metric.
ARM Holdings's Forward PE Ratio for today is 144.29.
ARM Holdings (NAS:ARM) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
ARM Holdings Forward PE Ratio Related Terms
ARM Holdings Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for ARM Holdings's Forward PE Ratio 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 Holdings Forward PE Ratio Chart
ARM Holdings Annual Data
Trend
2024-03
2025-03
2026-03
Forward PE Ratio
88.50
52.77
67.32
ARM Holdings Quarterly Data
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
55.87
56.82
88.50
108.70
93.46
62.03
52.77
92.38
82.13
48.24
67.32
ARM vs TXN, MRVL, QCOM: Forward PE Ratio Comparison
For the Semiconductors subindustry, ARM Holdings's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
ARM Holdings (ARM) has a Forward PE Ratio of 144.29 as of Jul. 02, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on ARM Holdings and its competitors. According to the industry distribution chart, ARM Holdings ranks #492 out of 545 companies in the Semiconductors industry, placing it in the top 90.3%.
Is ARM Holdings' Forward PE Ratio too high?
ARM Holdings' current Forward PE Ratio is 144.29. The Semiconductors industry median Forward PE Ratio is 38.35. ARM Holdings' value of 144.29 is 276.2% above this industry median. Based on the distribution chart, ARM Holdings ranks #492 out of 545 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. 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' Forward PE Ratio compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #492 out of 545 companies for Forward PE Ratio. This places ARM Holdings in the lower half of its industry. The industry median Forward PE Ratio is 38.35. ARM Holdings' value of 144.29 is 276.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Semiconductors company?
The median Forward PE Ratio among Semiconductors companies is 38.35, based on 545 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Forward PE Ratio of 144.29 is 276.2% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median Forward PE Ratio is 38.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Forward PE Ratio is 144.29. 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 $178.36, compared to a current price of $315.28 — trading 76.8% above its estimated fair value. The current Forward PE Ratio is 144.29 and 276.2% above the Semiconductors industry median of 38.35. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For ARM Holdings (ARM), the current Forward PE Ratio is 144.29 as of Jul. 02, 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 $315.28 is trading 76.8% above its estimated GF Value™ of $178.36.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Forward PE Ratio: 144.29
GF Value™: $178.36 vs. price of $315.28 (76.8% above fair value)
Industry Position: 276.2% above the Semiconductors median (#492 of 545)
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
Get the complete analysis for ARM
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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