ARM (ARM Holdings) 3-Year Sortino Ratio: N/A (As of Aug. 10, 2026)

Author: Vera Yuan Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ARM ARM Holdings PLC ARM
69 GF Score
Price $272.54
GF Value $187.61
Valuation Significantly Overvalued
! 1 Warning Sign
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What is ARM Holdings 3-Year Sortino Ratio?

The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2026-08-10), ARM Holdings's 3-Year Sortino Ratio is Not available.

ARM Holdings  (NAS:ARM) 3-Year Sortino Ratio Explanation

The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.

ARM Holdings 3-Year Sortino Ratio Related Terms

ARM vs TXN, ADI, QCOM: 3-Year Sortino Ratio Comparison

For the Semiconductors subindustry, ARM Holdings's 3-Year Sortino Ratio, along with its competitors' market caps and 3-Year Sortino 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 3-Year Sortino Ratio vs Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's 3-Year Sortino Ratio distribution charts can be found below:

* The bar in red indicates where ARM Holdings's 3-Year Sortino Ratio falls into.


ARM
69GF Score
ARM Holdings PLC ARM
3-Year Sortino Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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ARM Holdings 3-Year Sortino Ratio Calculation

The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past three year.

A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.

Is ARM Holdings (ARM) Overvalued in 2026?

Based on GuruFocus' analysis, ARM Holdings stock appears to be overvalued. The current stock price of $272.54 is trading 45.3% above its estimated GF Value™ of $187.61. GuruFocus considers ARM Holdings to be Significantly Overvalued.

Key valuation signals for ARM:

  • 3-Year Sortino Ratio: N/A
  • GF Value™: $187.61 vs. price of $272.54 (45.3% above fair value)
  • GF Score™: 69/100 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.
69GF Score

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3-Year Sortino Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$272.54
Price
$187.61
GF Value