ARM (ARM Holdings) Margin of Safety % (DCF FCF Based): -1,150.90% (As of Jun. 25, 2026)


ARM ARM Holdings PLC ARM
62 GF Score
Price $347.13
GF Value $177.63
Valuation Significantly Overvalued
! 1 Warning Sign
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What is ARM Holdings Margin of Safety % (DCF FCF Based)?

ARM Holdings ARM -3.33% 62 Margin of Safety % (DCF FCF Based) is -1,150.90% as of Jun. 25, 2026. GuruFocus rates ARM with a GF Score™ of 62/100 and a GF Value™ of $177.63 (Significantly Overvalued). The stock has 1 warning sign investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-25), ARM Holdings's Predictability Rank is 4.5-Stars. ARM Holdings's intrinsic value calculated from the Discounted FCF model is $17.74 and current share price is $347.125. Consequently,

ARM Holdings's Margin of Safety % (DCF FCF Based) using Discounted FCF model is -1,150.90%.

ARM vs TXN, QCOM, ADI: Margin of Safety % (DCF FCF Based) Comparison

For the Semiconductors subindustry, ARM Holdings's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) vs Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where ARM Holdings's Margin of Safety % (DCF FCF Based) falls into.


ARM
62GF Score
ARM Holdings PLC ARM
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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ARM Holdings Margin of Safety % (DCF FCF Based) Calculation

ARM Holdings's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(27.75-347.125)/27.75
=-1,150.90 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of -1,150.90% mean?
ARM Holdings (ARM) has a Margin of Safety % (DCF FCF Based) of -1,150.90% as of Jun. 25, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on ARM Holdings.
Is ARM Holdings' Margin of Safety % (DCF FCF Based) too high?
ARM Holdings' current Margin of Safety % (DCF FCF Based) is -1,150.90%. 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' Margin of Safety % (DCF FCF Based) compare to TXN and QCOM?
ARM Holdings' Margin of Safety % (DCF FCF Based) of -1,150.90% can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for a Semiconductors company?
A good Margin of Safety % (DCF FCF Based) depends on the Semiconductors industry context. However, Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on ARM Holdings. ARM Holdings's current Margin of Safety % (DCF FCF Based) is -1,150.90%. 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 $177.63, compared to a current price of $347.13 — trading 95.4% above its estimated fair value. The current Margin of Safety % (DCF FCF Based) is -1,150.90%. 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 Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For ARM Holdings (ARM), the current Margin of Safety % (DCF FCF Based) is -1,150.90% 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 (ARM) Overvalued in 2026?

Based on GuruFocus' analysis, ARM Holdings stock appears to be overvalued. The current stock price of $347.13 is trading 95.4% above its estimated GF Value™ of $177.63. GuruFocus considers ARM Holdings to be Significantly Overvalued.

Key valuation signals for ARM:

  • Margin of Safety % (DCF FCF Based): -1,150.90%
  • GF Value™: $177.63 vs. price of $347.13 (95.4% above fair value)
  • GF Score™: 62/100 with 1 warning sign

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 Business Description

Other Exchanges ARMN:MexicoO9T:Germany
Address 110 Fulbourn Road, Cambridge, GBR, CB1 9NJ
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

Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$347.13
Price
$177.63
GF Value