ARM (ARM Holdings) Risk Assessment


ARM ARM Holdings PLC ARM
62 GF Score
Price $354.57
GF Value $177.73
Valuation Significantly Overvalued
! 1 Warning Sign
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What is ARM Holdings Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of ARM Holdings is: Low Risk: Strong fundamentals, worth long-term holding.

ARM Holdings  (NAS:ARM) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

ARM Holdings Risk Assessment Related Terms

ARM vs TXN, MRVL, QCOM: Risk Assessment Comparison

For the Semiconductors subindustry, ARM Holdings's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's Risk Assessment distribution charts can be found below:

* The bar in red indicates where ARM Holdings's Risk Assessment falls into.


ARM
62GF Score
ARM Holdings PLC ARM
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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Is ARM Holdings (ARM) Overvalued in 2026?

Based on GuruFocus' analysis, ARM Holdings stock appears to be overvalued. The current stock price of $354.57 is trading 99.5% above its estimated GF Value™ of $177.73. GuruFocus considers ARM Holdings to be Significantly Overvalued.

Key valuation signals for ARM:

  • Risk Assessment:
  • GF Value™: $177.73 vs. price of $354.57 (99.5% above fair value)
  • GF Score™: 62/100 with 1 warning sign

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 Business Description

Other Exchanges ARMN:MexicoO9T:Germany
Address 110 Fulbourn Road, Cambridge, GBR, CB1 9NJ
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

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$354.57
Price
$177.73
GF Value