Should I Buy ARM Stock in 2026?
Data-driven analysis and honest assessment for Arm Holdings Plc
Current Price: $129.26P/E: 172.3
Decision Score
Weak
Based on 6 fundamental factors
Score Breakdown:
Very high P/E of 172.3 suggests overvaluation
Slow growth of 0%
Thin margins (0% net)
Financial health data limited
Low FCF yield of 0.6%
No recent insider activity
Key Investment Metrics
Current Price
$129.26
P/E Ratio
172.35
Revenue Growth
0.3%
Profit Margin
0.2%
Market Cap
$137.3B
Dividend Yield
None
How ARM Compares to Competitors
Understanding how ARM stacks up against peers helps inform your investment decision.
How ARM Compares to Peers
Upcoming Events for ARM
+5 Reasons TO Buy ARM
1. High gross margins of 97%
strongGross margins above 50% typically indicate strong brand value or intellectual property moats.
2. Large-cap stability and market leadership
moderateWith market cap over $100B, this company has established leadership and resources to weather cycles.
-5 Reasons NOT to Buy ARM
1. Expensive valuation at 172x earnings
high riskP/E of 172 is significantly above averages. High expectations leave little room for disappointment.
2. Thin profit margins of 0.2%
high riskLow margins provide little cushion against cost increases or pricing pressure.
3. High PEG ratio of 2.8
medium riskPEG above 2 suggests expensive relative to growth rate.
4. Minimal revenue growth
low riskGrowth of 0.3% barely keeps pace with inflation.
5. Low free cash flow yield of 0.6%
low riskLimited cash generation means most value comes from future growth expectations.
Who Should Buy ARM?
Investment Profile
Risk Level
High
Recommended Holding Period
3-5 years
Best For:
- ✓
Momentum Traders
High-growth profile attracts momentum
Not Suitable For:
- ✗
Growth Investors
Limited 0% growth may disappoint
- ✗
Value Investors
Premium P/E of 172 doesn't fit value criteria
- ✗
Income-Focused Retirees
No dividend paid
- ✗
Risk-Averse Investors
High risk may cause uncomfortable volatility
Consider These Alternatives
If you're interested in ARM, compare these Information Technology peers:
Pro tip: Compare ARM directly with competitors using our comparison tool to see which stock better fits your criteria.
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Frequently Asked Questions
What is ARM stock price today?
ARM (Arm Holdings Plc) stock is trading at $129.26 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).
Is ARM stock going up or down today?
ARM stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.
Should I buy ARM stock now?
The decision to buy ARM depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.
Is ARM a buy, hold, or sell right now?
Our AI-powered analysis provides buy/hold/sell recommendations for ARM based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.
Is ARM stock overvalued or undervalued?
ARM currently trades at a P/E ratio of 172.35, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if ARM is fairly priced.
What is ARM's P/E ratio?
ARM has a price-to-earnings (P/E) ratio of 172.35, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.
What is ARM's market cap?
ARM (Arm Holdings Plc) has a market capitalization of $137.27 billion, making it a mid-cap stock.
What is ARM's price to book ratio?
ARM trades at a price-to-book (P/B) ratio of 23.00, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.
Deep Dive Analysis
Explore comprehensive analysis tools to make an informed decision about Arm Holdings Plc
Full Stock Analysis
Complete ARM overview with charts and data
Is ARM Undervalued?
DCF valuation and intrinsic value analysis
Dividend Analysis
Yield, payout ratio, and dividend history
Growth Analysis
Revenue, earnings, and expansion metrics
Financial Health
Debt, liquidity, and balance sheet strength
Price Prediction
2026 forecast and price targets
Stock Forecast
12-month price forecast and analyst targets
Earnings Date
Next earnings date and historical results
Compare Before You Buy
See how ARM stacks up against its competitors
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Disclaimer
This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.