ARM HoldingsARM -6.58%69 Return-on-Tangible-Asset is 14.59% as of Mar. 2026, which is 29% above its 10-year median of 11.29. GuruFocus rates ARM with a GF Score™ of 69/100 and a GF Value™ of $178.39 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,026 Semiconductors companies, ARM Holdings ranks better than 82.65% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. ARM Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,252 Mil. ARM Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was $8,581 Mil. Therefore, ARM Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 14.59%.
The historical rank and industry rank for ARM Holdings's Return-on-Tangible-Asset or its related term are showing as below:
ARM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 5.44 Med: 11.29 Max: 11.9
Current: 11.39
During the past 6 years, ARM Holdings's highest Return-on-Tangible-Asset was 11.90%. The lowest was 5.44%. And the median was 11.29%.
ARM's Return-on-Tangible-Asset is ranked better than 82.65% of 1026
companies
in the Semiconductors industry
Industry Median: 2.59
vs ARM: 11.39
ARM Holdings (NAS:ARM) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
ARM Holdings Return-on-Tangible-Asset Related Terms
ARM Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for ARM Holdings's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Semiconductors subindustry, ARM Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 14.59% mean?
ARM Holdings (ARM) has a Return-on-Tangible-Asset of 14.59% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on ARM Holdings and its competitors. This is 29% above median its historical median of 11.29. Over the past decade, ARM Holdings' Return-on-Tangible-Asset has ranged from 5.44 to 11.90. According to the industry distribution chart, ARM Holdings ranks #178 out of 1026 companies in the Semiconductors industry, placing it in the top 17.3%.
Is ARM Holdings' Return-on-Tangible-Asset too high?
ARM Holdings' current Return-on-Tangible-Asset of 14.59% is 29% above median its 10-year median of 11.29. Over the past 10 years, this metric has ranged from a low of 5.44 to a high of 11.90. The Semiconductors industry median Return-on-Tangible-Asset is 2.59. ARM Holdings' value of 14.59% is 463.3% above this industry median. Based on the distribution chart, ARM Holdings ranks #178 out of 1026 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, ARM Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' Return-on-Tangible-Asset compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #178 out of 1026 companies for Return-on-Tangible-Asset. This places ARM Holdings in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.59. ARM Holdings' value of 14.59% is 463.3% above this benchmark. Historically, ARM Holdings' own Return-on-Tangible-Asset has ranged from 5.44 to 11.90 over the past decade. While the company's 10-year median is 11.29 vs. the industry median of 2.59, 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 Return-on-Tangible-Asset for a Semiconductors company?
The median Return-on-Tangible-Asset among Semiconductors companies is 2.59, based on 1,026 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Return-on-Tangible-Asset of 14.59% is 463.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Asset is 2.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Return-on-Tangible-Asset is 14.59%, which is 29% above median its own 10-year median of 11.29. 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 $178.39, compared to a current price of $315.28 — trading 76.7% above its estimated fair value. The current Return-on-Tangible-Asset is 14.59%, which is 29% above median its 10-year median of 11.29 and 463.3% above the Semiconductors industry median of 2.59. ARM Holdings' overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For ARM Holdings (ARM), the current Return-on-Tangible-Asset is 14.59% as of Mar. 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 76.7% above its estimated GF Value™ of $178.39.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Return-on-Tangible-Asset: 14.59% (29% above median its 10-year median of 11.29)
GF Value™: $178.39 vs. price of $315.28 (76.7% above fair value)
Industry Position: 463.3% above the Semiconductors median (#178 of 1026)
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.
69GF Score
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