ARM HoldingsMEX:ARMN -1.19%61 PEG Ratio is 19.55 as of Jun. 25, 2026, which is 48% above its 10-year median of 13.18. GuruFocus rates MEX:ARMN with a GF Score™ of 61/100 and a GF Value™ of MXN3,132.07 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 329 Semiconductors companies, ARM Holdings ranks worse than 83.59% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for ARM Holdings's PEG Ratio or its related term are showing as below:
MEX:ARMN'
s PEG Ratio Range Over the Past 10 Years
Min: 8.36 Med: 13.18 Max: 24.67
Current: 20.14
During the past 6 years, ARM Holdings's highest PEG Ratio was 24.67. The lowest was 8.36. And the median was 13.18.
MEX:ARMN's PEG Ratio is ranked worse than 83.59% of 329
companies
in the Semiconductors industry
Industry Median: 3.74
vs MEX:ARMN: 20.14
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
ARM Holdings (MEX:ARMN) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
ARM Holdings PEG Ratio Related Terms
ARM Holdings PEG Ratio Historical Data
* Premium members only.
The historical data trend for ARM Holdings's PEG 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 PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's PEG Ratio distribution charts can be found below:
* The bar in red indicates where ARM Holdings's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
ARM Holdings (MEX:ARMN) has a PEG Ratio of 19.55 as of Jun. 25, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on ARM Holdings and its competitors. This is 48% above median its historical median of 13.18. Over the past decade, ARM Holdings' PEG Ratio has ranged from 8.36 to 24.67. According to the industry distribution chart, ARM Holdings ranks #275 out of 329 companies in the Semiconductors industry, placing it in the top 83.6%.
Is ARM Holdings' PEG Ratio too high?
ARM Holdings' current PEG Ratio of 19.55 is 48% above median its 10-year median of 13.18. Over the past 10 years, this metric has ranged from a low of 8.36 to a high of 24.67. The Semiconductors industry median PEG Ratio is 3.74. ARM Holdings' value of 19.55 is 422.7% above this industry median. Based on the distribution chart, ARM Holdings ranks #275 out of 329 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, ARM Holdings has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' PEG Ratio compare to TXN and QCOM?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #275 out of 329 companies for PEG Ratio. This places ARM Holdings in the lower half of its industry. The industry median PEG Ratio is 3.74. ARM Holdings' value of 19.55 is 422.7% above this benchmark. Historically, ARM Holdings' own PEG Ratio has ranged from 8.36 to 24.67 over the past decade. While the company's 10-year median is 13.18 vs. the industry median of 3.74, 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 PEG Ratio for a Semiconductors company?
The median PEG Ratio among Semiconductors companies is 3.74, based on 329 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current PEG Ratio of 19.55 is 422.7% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median PEG Ratio is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current PEG Ratio is 19.55, which is 48% above median its own 10-year median of 13.18. 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 (MEX:ARMN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN3,132.07, compared to a current price of MXN6,331.50 — trading 102.2% above its estimated fair value. The current PEG Ratio is 19.55, which is 48% above median its 10-year median of 13.18 and 422.7% above the Semiconductors industry median of 3.74. ARM Holdings' overall GF Score™ is 61/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For ARM Holdings (MEX:ARMN), the current PEG Ratio is 19.55 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 (MEX:ARMN) Overvalued in 2026?
Based on GuruFocus' analysis, ARM Holdings stock appears to be overvalued.
The current stock price of MXN6,331.50 is trading 102.2% above its estimated GF Value™ of MXN3,132.07.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for MEX:ARMN:
PEG Ratio: 19.55 (48% above median its 10-year median of 13.18)
GF Value™: MXN3,132.07 vs. price of MXN6,331.50 (102.2% above fair value)
Industry Position: 422.7% above the Semiconductors median (#275 of 329)
No single metric tells the full story. See the MEX:ARMN 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.
61GF Score
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