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Is Arm Holdings plc American Depositary Shares (ARM) Undervalued? Valuation & Fair Price

At $310.32, the frameworks are split on Arm Holdings plc American Depositary Shares today — Warren Buffett and Phil Town (Rule #1) rate it Avoid and Benjamin Graham and Peter Lynch rate it Hold. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.

AR

Arm Holdings plc American Depositary Shares

ARM

Technology · Semiconductors · NASDAQ

$310.32

P/E 280.3×

CEO

Rene Anthony Andrada Haas

Sector

Technology

Industry

Semiconductors

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 Kingdom. With a significant global footprint, Arm conducts operations across the United States, the People's Republic of China, Taiwan, South Korea, and numerous other international regions. Currently, Arm Holdings plc functions as a subsidiary entity of Kronos II LLC.

Investor scorecard

How the four investors rate Arm Holdings plc American Depositary Shares

A split decision across the frameworks

Warren Buffett
56%Avoid
Benjamin Graham
64%Hold
Peter Lynch
67%Hold
Phil Town (Rule #1)
55%Avoid

Investor model analysis

Details locked

At $310.32, 2 of 4 frameworks say Avoid

Business Quality61/100

Intrinsic Value (DCF)

Warren Buffett's valuation model · select an investor above to switch

Intrinsic Value

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Buy Below

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Strong Buy

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Margin of Safety

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Insider & congress activity

Are insiders buying ARM?

Over recent SEC Form 4 filings, ARM insiders bought $0 and sold $44.9M of stock across 18 open-market trades. Insiders sell for many reasons, but they buy for one.

Bought $0Sold $44.9M
Recent open-market insider trades for ARM
InsiderActionSharesValueDate
Child JasonChief Financial OfficerSell10,400$3.1MSep 21, 2026
Child JasonChief Financial OfficerSell10,400$2.7MAug 27, 2026
Bartels Laura KathleenChief Accounting OfficerSell11,306$4.4MJun 2, 2026
Abbey WilliamChief Commercial OfficerSell4,200$1.4MMay 28, 2026
Abbey WilliamChief Commercial OfficerSell2,300$703KMay 22, 2026

Members of Congress have also reported 4 trades in ARM. See the full insider & congress timeline.

Source: SEC Form 4 filings. Open-market buys & sells only. Not investment advice.

See the interactive insider chart & every trade

Scenario analysis

Bear, base & bull

Three growth assumptions, three fair values — and where today's price lands

What's working

Key strengths

Identified by Buffett framework analysis

Debt Levels

Gross Margin

Net Profit Margin

Risk factors & concerns — free account

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Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20262025202420232022
Revenue$4.9B
$4.0B
$3.2B
$2.7B
$2.7B
Rev. Growth+22.8%+23.9%+20.7%-0.9%—
Net Income$904M$792M$306M$524M$549M
Net Margin18.4%19.8%9.5%19.6%20.3%
EPS (Diluted)$0.85$0.75$0.30$0.51$0.54
Free Cash FlowLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to view

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Educational Use Only · Not Financial Advice

Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.