ARM HoldingsARM -6.58%62 Peter Lynch Fair Value is $20.51 as of Jul. 02, 2026, which is 178% above its 10-year median of 7.38. GuruFocus rates ARM with a GF Score™ of 62/100 and a GF Value™ of $178.36 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 207 Semiconductors companies, ARM Holdings ranks worse than 96.14% on this metric.
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, ARM Holdings's PEG is 1. ARM Holdings's 5-Year TTM EBITDA Growth Rate is 11.59.
ARM Holdings's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2026 was $1.77. Therefore, the Peter Lynch Fair Value for today is $20.51.
As of today (2026-07-02), ARM Holdings's share price is $315.28. ARM Holdings's Peter Lynch fair value is $20.51. Therefore, ARM Holdings's Price to Peter Lynch Fair Value Ratio for today is 15.37.
The historical rank and industry rank for ARM Holdings's Peter Lynch Fair Value or its related term are showing as below:
ARM'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 7.38 Med: 7.38 Max: 17.33
Current: 15.37
During the past 6 years, the highest Price to Peter Lynch Fair Value Ratio of ARM Holdings was 17.33. The lowest was 7.38. And the median was 7.38.
ARM's Price-to-Peter-Lynch-Fair-Value is ranked worse than 96.14% of 207
companies
in the Semiconductors industry
Industry Median: 2.77
vs ARM: 15.37
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
ARM Holdings (NAS:ARM) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 11.59 instead of 15 in this case.
ARM Holdings's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
315.28
/
20.51
=
15.37
* 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 Peter Lynch Fair Value Related Terms
ARM Holdings Peter Lynch Fair Value Historical Data
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The historical data trend for ARM Holdings's Peter Lynch Fair Value 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.
ARM vs TXN, MRVL, QCOM: Peter Lynch Fair Value Comparison
For the Semiconductors subindustry, ARM Holdings's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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-Peter-Lynch-Fair-Value vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Price-to-Peter-Lynch-Fair-Value falls into.
ARM Holdings's EPS without NRI for the trailing twelve months (TTM) uses the latest annual data, which was $1.77.
* Note that for companies that do not have enough quarterly data to calculate the 5-Year TTM EBITDA Growth Rate, we use the annual data for the calculation.
* 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.
** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
What does a Peter Lynch Fair Value of $20.51 mean?
ARM Holdings (ARM) has a Peter Lynch Fair Value of $20.51 as of Jul. 02, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on ARM Holdings and its competitors. This is 178% above median its historical median of 7.38. Over the past decade, ARM Holdings' Peter Lynch Fair Value has ranged from 7.38 to 17.33. According to the industry distribution chart, ARM Holdings ranks #199 out of 207 companies in the Semiconductors industry, placing it in the top 96.1%.
Is ARM Holdings' Peter Lynch Fair Value too high?
ARM Holdings' current Peter Lynch Fair Value of $20.51 is 178% above median its 10-year median of 7.38. Over the past 10 years, this metric has ranged from a low of 7.38 to a high of 17.33. The Semiconductors industry median Peter Lynch Fair Value is 2.77. ARM Holdings' value of $20.51 is 640.4% above this industry median. Based on the distribution chart, ARM Holdings ranks #199 out of 207 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' Peter Lynch Fair Value compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #199 out of 207 companies for Peter Lynch Fair Value. This places ARM Holdings in the lower half of its industry. The industry median Peter Lynch Fair Value is 2.77. ARM Holdings' value of $20.51 is 640.4% above this benchmark. Historically, ARM Holdings' own Peter Lynch Fair Value has ranged from 7.38 to 17.33 over the past decade. While the company's 10-year median is 7.38 vs. the industry median of 2.77, 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 Peter Lynch Fair Value for a Semiconductors company?
The median Peter Lynch Fair Value among Semiconductors companies is 2.77, based on 207 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Peter Lynch Fair Value of $20.51 is 640.4% 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 Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median Peter Lynch Fair Value is 2.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Peter Lynch Fair Value is $20.51, which is 178% above median its own 10-year median of 7.38. 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 $178.36, compared to a current price of $315.28 — trading 76.8% above its estimated fair value. The current Peter Lynch Fair Value is $20.51, which is 178% above median its 10-year median of 7.38 and 640.4% above the Semiconductors industry median of 2.77. 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 Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For ARM Holdings (ARM), the current Peter Lynch Fair Value is $20.51 as of Jul. 02, 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 76.8% above its estimated GF Value™ of $178.36.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Peter Lynch Fair Value: $20.51 (178% above median its 10-year median of 7.38)
GF Value™: $178.36 vs. price of $315.28 (76.8% above fair value)
Industry Position: 640.4% above the Semiconductors median (#199 of 207)
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
Get the complete analysis for ARM
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