ARM HoldingsARM -3.17%62 PB Ratio is 44.65 as of Jun. 25, 2026, which is 106% above its 10-year median of 21.64. 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 1,000 Semiconductors companies, ARM Holdings ranks worse than 97.9% on this metric.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2026-06-25), ARM Holdings's share price is $347.71. ARM Holdings's Book Value per Share for the quarter that ended in Mar. 2026 was $7.79. Hence, ARM Holdings's PB Ratio of today is 44.65.
The historical rank and industry rank for ARM Holdings's PB Ratio or its related term are showing as below:
ARM'
s PB Ratio Range Over the Past 10 Years
Min: 10.28 Med: 21.64 Max: 56.44
Current: 44.64
During the past 6 years, ARM Holdings's highest PB Ratio was 56.44. The lowest was 10.28. And the median was 21.64.
ARM's PB Ratio is ranked worse than 97.9% of 1000
companies
in the Semiconductors industry
Industry Median: 3.82
vs ARM: 44.64
During the past 12 months, ARM Holdings's average Book Value Per Share Growth Rate was 20.30% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 25.40% per year.
During the past 6 years, the highest 3-Year average Book Value Per Share Growth Rate of ARM Holdings was 25.40% per year. The lowest was 23.20% per year. And the median was 24.30% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
ARM Holdings PB Ratio Related Terms
ARM Holdings PB Ratio Historical Data
* Premium members only.
The historical data trend for ARM Holdings's PB 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.
For the Semiconductors subindustry, ARM Holdings's PB Ratio, along with its competitors' market caps and PB 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 PB Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's PB Ratio distribution charts can be found below:
* The bar in red indicates where ARM Holdings's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
ARM Holdings's PB Ratio for today is calculated as follows:
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
ARM Holdings (ARM) has a PB Ratio of 44.65 as of Jun. 25, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on ARM Holdings and its competitors. This is 106% above median its historical median of 21.64. Over the past decade, ARM Holdings' PB Ratio has ranged from 10.28 to 56.44. According to the industry distribution chart, ARM Holdings ranks #979 out of 1000 companies in the Semiconductors industry, placing it in the top 97.9%.
Is ARM Holdings' PB Ratio too high?
ARM Holdings' current PB Ratio of 44.65 is 106% above median its 10-year median of 21.64. Over the past 10 years, this metric has ranged from a low of 10.28 to a high of 56.44. The Semiconductors industry median PB Ratio is 3.82. ARM Holdings' value of 44.65 is 1068.8% above this industry median. Based on the distribution chart, ARM Holdings ranks #979 out of 1000 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' PB Ratio compare to TXN and QCOM?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #979 out of 1000 companies for PB Ratio. This places ARM Holdings in the lower half of its industry. The industry median PB Ratio is 3.82. ARM Holdings' value of 44.65 is 1068.8% above this benchmark. Historically, ARM Holdings' own PB Ratio has ranged from 10.28 to 56.44 over the past decade. While the company's 10-year median is 21.64 vs. the industry median of 3.82, 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 PB Ratio for a Semiconductors company?
The median PB Ratio among Semiconductors companies is 3.82, based on 1,000 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current PB Ratio of 44.65 is 1068.8% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median PB Ratio is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current PB Ratio is 44.65, which is 106% above median its own 10-year median of 21.64. 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 PB Ratio is 44.65, which is 106% above median its 10-year median of 21.64 and 1068.8% above the Semiconductors industry median of 3.82. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For ARM Holdings (ARM), the current PB Ratio is 44.65 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:
PB Ratio: 44.65 (106% above median its 10-year median of 21.64)
GF Value™: $177.63 vs. price of $347.71 (95.7% above fair value)
Industry Position: 1068.8% above the Semiconductors median (#979 of 1000)
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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