What Is ARM Fair Value?
Arm Holdings plc (ARM) fair value estimate using multiple valuation models, updated daily.
As of August 1, 2026, Arm Holdings plc (ARM) has a composite fair value estimate of $35.44 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $239.69, suggesting the stock is overvalued by 85.2%.
Data as of August 1, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$35.44
vs. current price of $239.69(-85.2%)
How Is ARM Fair Value Calculated?
Four independent models estimate what ARM is worth. Each uses different inputs and assumptions. The composite blends them by weight.
ARM Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
41% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$17.96
-92.5%Overvalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
ARM Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$19.75
-91.8%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
29% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$71.15
-70.3%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $239.69 is 92.5% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.67B | $1.33B |
| Year 2 | $2.09B | $1.33B |
| Year 3 | $2.61B | $1.33B |
| Year 4 | $3.26B | $1.33B |
| Year 5 | $4.07B | $1.32B |
| Year 6 | $5.09B | $1.32B |
| Year 7 | $6.36B | $1.32B |
| Year 8 | $7.95B | $1.32B |
| Year 9 | $9.94B | $1.32B |
| Year 10 | $12.43B | $1.31B |
| Terminal Value | $56.13B | $5.93B |
What Are ARM's Key Financial Metrics?
Earnings & Growth
Current Price
$239.69
EPS (TTM)
$0.98
Forward P/E
78.0
Profit Margin
20.2%
Cash & Balance Sheet
Free Cash Flow
1.3B
EBITDA
1.1B
Book Value
$7.79
Total Debt
485M
What Do Analysts Say About ARM?
Low
$125.00
Average
$286.03
High
$500.00
Upside
+19.3%
ARM Fair Value FAQ
What is the fair value of ARM?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), ARM's estimated fair value is $35.44. The stock is currently trading at $239.69, which makes it overvalued by our analysis.
How is ARM's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is ARM overvalued or undervalued?
Based on our analysis, ARM is overvalued. The current price of $239.69 is 85.2% above our estimated fair value of $35.44.
What do Wall Street analysts say about ARM?
37 analysts cover Arm Holdings plc with a consensus rating of "Buy." The average price target is $286.03, ranging from $125.00 to $500.00. This implies 19.3% upside from the current price.