Stock Valuation / ARM
Is Arm Holdings plc (ARM) Overvalued? Fair Value & 5-Year Target
Arm Holdings plc trades at $255.39 (P/E 260.60). Our reference model estimates a fair value of $284.11 at its recent average P/E of 289.91.
| Current price | $255.39 |
|---|---|
| Current EPS | $0.98 |
| Current P/E | 260.60 |
| Average P/E | 289.91 |
| Fair value (at avg P/E) | $284.11 |
| Upside to fair value | +11.2% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $49.28 |
What drives ARM's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About Arm Holdings plc
Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services. The company provides a product portfolio, including CPU IP, GPU and neural processing unit (NPU) accelerators, system IP such as interconnects, compute platform products including pre-integrated CSSs, and development tools and software. The company serves semiconductor companies, original equipment manufacturers (OEMs), cloud service providers (CSPs), and organizations developing chips for end markets such as smartphones, consumer electronics, industrial Io
Frequently asked questions
What is ARM's fair value?
At its recent average P/E of 289.91, Arm Holdings plc (ARM) has a reference fair value of about $284.11, which is +11.2% versus the current price of $255.39.
Is Arm Holdings plc (ARM) overvalued or undervalued?
Based on the average-P/E reference model, Arm Holdings plc looks undervalued relative to fair value by roughly +11.2%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for ARM?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $49.28. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive ARM valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.