ARM HoldingsARM -4.82%62 5-Year Yield-on-Cost % is 0.00 as of Jul. 01, 2026. GuruFocus rates ARM with a GF Score™ of 62/100 and a GF Value™ of $178.26 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 530 Semiconductors companies, ARM Holdings ranks worse than 188679.06% on this metric.
ARM Holdings's yield on cost for the quarter that ended in Mar. 2026 was 0.00.
The historical rank and industry rank for ARM Holdings's 5-Year Yield-on-Cost % or its related term are showing as below:
ARM's 5-Year Yield-on-Cost % is not ranked *
in the Semiconductors industry.
Industry Median: 1.01 * Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
ARM Holdings (NAS:ARM) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
ARM Holdings 5-Year Yield-on-Cost % Related Terms
ARM vs TXN, MRVL, QCOM: 5-Year Yield-on-Cost % Comparison
For the Semiconductors subindustry, ARM Holdings's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where ARM Holdings's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of ARM Holdings is calculated as
ARM Holdings (ARM) has a 5-Year Yield-on-Cost % of 0.00 as of Jul. 01, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on ARM Holdings and its competitors. According to the industry distribution chart, ARM Holdings ranks #999999 out of 530 companies in the Semiconductors industry.
Is ARM Holdings' 5-Year Yield-on-Cost % too high?
ARM Holdings' current 5-Year Yield-on-Cost % is 0.00. Based on the distribution chart, ARM Holdings ranks #999999 out of 530 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' 5-Year Yield-on-Cost % compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #999999 out of 530 companies for 5-Year Yield-on-Cost %. This places ARM Holdings in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 1.01. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Semiconductors company?
The median 5-Year Yield-on-Cost % among Semiconductors companies is 1.01, based on 530 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median 5-Year Yield-on-Cost % is 1.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current 5-Year Yield-on-Cost % is 0.00. 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 $178.26, compared to a current price of $337.47 — trading 89.3% above its estimated fair value. The current 5-Year Yield-on-Cost % is 0.00. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For ARM Holdings (ARM), the current 5-Year Yield-on-Cost % is 0.00 as of Jul. 01, 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 $337.47 is trading 89.3% above its estimated GF Value™ of $178.26.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
5-Year Yield-on-Cost %: 0.00
GF Value™: $178.26 vs. price of $337.47 (89.3% above fair value)
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
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