ARM HoldingsARM -3.17%62 OCF Yield % is 0.41 as of Jun. 25, 2026, which is 41% below its 10-year median of 0.69. 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. Among 1,028 Semiconductors companies, ARM Holdings ranks worse than 62.26% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF 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 operating 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 OCF Yield % Related Terms
ARM Holdings OCF Yield % Historical Data
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The historical data trend for ARM Holdings's OCF 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.
For the Semiconductors subindustry, ARM Holdings's OCF Yield %, along with its competitors' market caps and OCF 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 OCF Yield % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's OCF Yield % distribution charts can be found below:
* The bar in red indicates where ARM Holdings's OCF 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 (ARM) has a OCF Yield % of 0.41 as of Jun. 25, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on ARM Holdings and its competitors. This is 41% below median its historical median of 0.69. Over the past decade, ARM Holdings' OCF Yield % has ranged from 0.23 to 2.05. According to the industry distribution chart, ARM Holdings ranks #640 out of 1028 companies in the Semiconductors industry, placing it in the top 62.3%.
Is ARM Holdings' OCF Yield % too high?
ARM Holdings' current OCF Yield % of 0.41 is 41% below median its 10-year median of 0.69. Over the past 10 years, this metric has ranged from a low of 0.23 to a high of 2.05. The Semiconductors industry median OCF Yield % is 1.30. ARM Holdings' value of 0.41 is 68.5% below this industry median. Based on the distribution chart, ARM Holdings ranks #640 out of 1028 companies in the Semiconductors industry, which is below the industry midpoint. 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' OCF Yield % compare to TXN and QCOM?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #640 out of 1028 companies for OCF Yield %. This places ARM Holdings in the lower half of its industry. The industry median OCF Yield % is 1.30. ARM Holdings' value of 0.41 is 68.5% below this benchmark. Historically, ARM Holdings' own OCF Yield % has ranged from 0.23 to 2.05 over the past decade. While the company's 10-year median is 0.69 vs. the industry median of 1.30, ARM Holdings has consistently been below 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 OCF Yield % for a Semiconductors company?
The median OCF Yield % among Semiconductors companies is 1.30, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current OCF Yield % of 0.41 is 68.5% below 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median OCF Yield % is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current OCF Yield % is 0.41, which is 41% below median its own 10-year median of 0.69. 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 $347.71 — trading 95.7% above its estimated fair value. The current OCF Yield % is 0.41, which is 41% below median its 10-year median of 0.69 and 68.5% below the Semiconductors industry median of 1.30. 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 OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For ARM Holdings (ARM), the current OCF Yield % is 0.41 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 $347.71 is trading 95.7% above its estimated GF Value™ of $177.63.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
OCF Yield %: 0.41 (41% below median its 10-year median of 0.69)
GF Value™: $177.63 vs. price of $347.71 (95.7% above fair value)
Industry Position: 68.5% below the Semiconductors median (#640 of 1028)
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
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