ARM HoldingsARM -6.58%69 Graham Number is $14.46 as of Mar. 2026, which is 48% above its 10-year median of 9.75. GuruFocus rates ARM with a GF Score™ of 69/100 and a GF Value™ of $178.39 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 656 Semiconductors companies, ARM Holdings ranks worse than 96.19% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-03), the stock price of ARM Holdings is $315.28. ARM Holdings's graham number for the quarter that ended in Mar. 2026 was $14.46. Therefore, ARM Holdings's Price to Graham Number ratio for today is 21.80.
The historical rank and industry rank for ARM Holdings's Graham Number or its related term are showing as below:
ARM'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 8.05 Med: 9.75 Max: 21.8
Current: 21.8
During the past 6 years, the highest Price to Graham Number ratio of ARM Holdings was 21.80. The lowest was 8.05. And the median was 9.75.
ARM's Price-to-Graham-Number is ranked worse than 96.19% of 656
companies
in the Semiconductors industry
Industry Median: 3.2
vs ARM: 21.80
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
ARM Holdings (NAS:ARM) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
ARM Holdings's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
315.28
/
14.46
=
21.80
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
ARM Holdings Graham Number Related Terms
ARM Holdings Graham Number Historical Data
* Premium members only.
The historical data trend for ARM Holdings's Graham Number 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 Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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 Price-to-Graham-Number vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Price-to-Graham-Number 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 (ARM) has a Graham Number of $14.46 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on ARM Holdings and its competitors. This is 48% above median its historical median of 9.75. Over the past decade, ARM Holdings' Graham Number has ranged from 8.05 to 21.80. According to the industry distribution chart, ARM Holdings ranks #631 out of 656 companies in the Semiconductors industry, placing it in the top 96.2%.
Is ARM Holdings' Graham Number too high?
ARM Holdings' current Graham Number of $14.46 is 48% above median its 10-year median of 9.75. Over the past 10 years, this metric has ranged from a low of 8.05 to a high of 21.80. The Semiconductors industry median Graham Number is 3.20. ARM Holdings' value of $14.46 is 351.9% above this industry median. Based on the distribution chart, ARM Holdings ranks #631 out of 656 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. 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' Graham Number compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #631 out of 656 companies for Graham Number. This places ARM Holdings in the lower half of its industry. The industry median Graham Number is 3.20. ARM Holdings' value of $14.46 is 351.9% above this benchmark. Historically, ARM Holdings' own Graham Number has ranged from 8.05 to 21.80 over the past decade. While the company's 10-year median is 9.75 vs. the industry median of 3.20, 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 Graham Number for a Semiconductors company?
The median Graham Number among Semiconductors companies is 3.20, based on 656 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Graham Number of $14.46 is 351.9% 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 Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median Graham Number is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Graham Number is $14.46, which is 48% above median its own 10-year median of 9.75. 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 $178.39, compared to a current price of $315.28 — trading 76.7% above its estimated fair value. The current Graham Number is $14.46, which is 48% above median its 10-year median of 9.75 and 351.9% above the Semiconductors industry median of 3.20. 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 Graham Number calculated?
Graham Number is calculated from a company's financial statements. For ARM Holdings (ARM), the current Graham Number is $14.46 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 $315.28 is trading 76.7% above its estimated GF Value™ of $178.39.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Graham Number: $14.46 (48% above median its 10-year median of 9.75)
GF Value™: $178.39 vs. price of $315.28 (76.7% above fair value)
Industry Position: 351.9% above the Semiconductors median (#631 of 656)
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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