Arm Holdings (ARM) Fundamental Analysis: Revenue, Earnings & Valuation

5.29 / 10

Netural

Fundamental rating is Neutral (5.3/10). Strengths include a high PB‑ROE and strong interest‑coverage (34.9×). However, cash growth (Cash‑UP) and operating cash‑flow YoY are poor, dragging the score. Overall the fundamentals are balanced but warrant caution.

Analysis Checks(5/10)

Revenue-MV

Value-1.86

Score3/3

Weight19.85%

1M Return10.10%

Net cash flow from operating activities / Operating revenue (%)

Value4.47

Score0/3

Weight-0.45%

1M Return-0.36%

Profit-MV

Value-1.19

Score2/3

Weight18.17%

1M Return10.10%

PB-ROE

Value11.90

Score3/3

Weight22.79%

1M Return11.76%

Net cash flow from operating activities (YoY growth rate %)

Value-78.51

Score0/3

Weight-0.74%

1M Return-0.58%

Cash-UP

Value-0.16

Score1/3

Weight2.41%

1M Return1.67%

Net cash flow from operating activities / Total liabilities (%)

Value0.08

Score0/3

Weight-0.10%

1M Return-0.08%

Interest coverage ratio (EBIT / Interest expense) (%)

Value34.93

Score2/3

Weight4.25%

1M Return2.90%

Asset-MV

Value-2.03

Score3/3

Weight20.90%

1M Return10.41%

Cash-MV

Value-1.96

Score1/3

Weight12.91%

1M Return7.83%

Is ARM undervalued or overvalued?

ARM scores 5.29/10 on fundamentals and holds a Fair valuation at present. Backed by its 8.08% ROE, 14.17% net margin, 252.97 P/E ratio, 21.48 P/B ratio, and -7.46% earnings growth, these metrics solidify its Netural investment rating.