---
title: Arm Holdings (ARM) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/arm
ticker: ARM
as_of: 2026-10-17
sector: Technology
industry: Semiconductors
---
# Arm Holdings (ARM)

Arm Holdings (ARM) closed at $227.80 on Oct 16, 2026, overvalued by 1197% vs its model value of $17.56 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $227.80 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $17.56 |
| Price vs model | overvalued by 1197% vs model |
| Range of that model | $12.79 – $27.09 |
| Market value | $243.3B |
| P/E (fiscal 2026) | 268.0 |
| Net margin (fiscal 2026) | 18.4% |
| Free cash flow (fiscal 2026) | $979.0M |
| Dividend yield (trailing twelve months) | 0.00% |
| Beta | 3.79 |
| Cost of capital (WACC) | 13.35% |
| Business classification | High Growth (High revenue growth (~23% recent), Moderate margins (18% net margin), Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Largest companies | #49 | $243.3B | https://sweetvaluelab.com/lists/largest-companies |
| Best performing this year | #15 | +108.4% | https://sweetvaluelab.com/lists/best-performing-this-year |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $17.56 | $12.79 | $27.09 |
| DCF · Perpetuity growth · 10y | cross check | $29.38 | $20.81 | $46.55 |
| DCF · EBITDA exit · 5y | cross check | $18.23 | $6.28 | $32.39 |
| DCF · EBITDA exit · 10y | cross check | $30.09 | $13.60 | $52.64 |
| P/E · peers | cross check | $78.30 | $51.97 | $89.23 |
| P/E · own history | cross check | $0.00 | $0.00 | $0.00 |
| PEG | sanity check | $55.71 | $55.71 | $55.71 |
| EV/EBITDA · peers | cross check | $60.52 | $35.47 | $86.72 |
| EV/Revenue · peers | cross check | $83.19 | $46.88 | $88.82 |
| Earnings power value | cross check | $6.83 | $6.36 | $7.43 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 2 open-market sales ($5.8M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 21, 2026 | Child Jason | Chief Financial Officer | Open-market sell (10b5-1 plan) | 10,400 | $3.1M |
| Sep 14, 2026 | Abbey William | Chief Commercial Officer | Grant / award | 17,288 | $0 |
| Sep 9, 2026 | Haas Rene A. | Chief Executive Officer | Grant / award | 425,000 | $0 |
| Aug 31, 2026 | Haas Rene A. | Chief Executive Officer | Grant / award | 64 | $6,933.1 |
| Aug 27, 2026 | Child Jason | Chief Financial Officer | Open-market sell (10b5-1 plan) | 10,400 | $2.7M |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 18, 2026 | 6-K | Current report (foreign issuer) | https://www.sec.gov/Archives/edgar/data/1973239/000197323926000135/arm-20260918.htm |
| Sep 10, 2026 | 6-K | Current report (foreign issuer) | https://www.sec.gov/Archives/edgar/data/1973239/000197323926000128/arm-20260910.htm |
| Aug 10, 2026 | 6-K | Current report (foreign issuer) | https://www.sec.gov/Archives/edgar/data/1973239/000197323926000117/arm-20260810.htm |
| Jul 29, 2026 | 6-K | Current report (foreign issuer) | https://www.sec.gov/Archives/edgar/data/1973239/000197323926000114/arm-20260630.htm |
| Jul 29, 2026 | 6-K | Current report (foreign issuer) | https://www.sec.gov/Archives/edgar/data/1973239/000197323926000113/arm-20260729.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Druckenmiller | 2026-06-30 | 28,090 | $10.0M |
| Bridgewater | 2026-06-30 | 4,924 | $1.7M |
| Lee Ainslie | 2026-06-30 | 3,813 | $1.4M |

3 tracked managers in all.

## About

Arm Holdings plc is a leading technology firm that conceptualizes, engineers, and licenses core processing unit (CPU) designs and complementary technologies. These foundational innovations are crucial for semiconductor manufacturers and original equipment manufacturers (OEMs) to develop their own products. The company's diverse portfolio encompasses microprocessors, comprehensive system intellectual property (IP) solutions, graphics processing units (GPUs), physical IP alongside its associated system IPs, various software offerings, development tools, and an array of supplementary services. Its technology underpins a wide spectrum of industries, including the automotive sector, advanced computing infrastructure, consumer electronics, and the burgeoning Internet of Things (IoT) landscape. Established in 1990, Arm Holdings plc maintains its corporate headquarters in Cambridge, United Kingd…

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Source: https://sweetvaluelab.com/stocks/arm (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.