Arm Holdings plc American Depositary Shares Ratios | P/E, ROE & Valuation

On the Key Ratios page for Arm Holdings plc American Depositary Shares (ARM), the latest P/E of 242.1 frames valuation, while ROE 13.00% and ROIC 7.33% indicates profitability and capital efficiency. Together with the current ratio of 5.25 and debt-to-equity 0.06, these signals help you judge whether valuation is supported by fundamentals across the historical rows.

Financial Performance Ratios

ARM Historical Per Share Metrics

6 years
Metric (FY)TTM20252024202320222021
Revenue per Share$4.84$3.82$3.15$2.61$2.63$1.98
Net Income per Share$0.98$0.75$0.30$0.51$0.54$0.38
Operating Cash Flow per Share$1.96$0.38$1.06$0.72$0.45$1.20
Free Cash Flow per Share$1.38$0.17$0.92$0.63$0.37$1.04
Cash per Share$3.65$2.69$2.84$2.16$1.59$0.00
Book Value per Share$8.10$6.51$5.15$3.95$3.46$0.00
Tangible Book Value per Share$6.37$4.83$3.42$2.23$1.66$0.00
Interest Debt per Share$0.45$0.34$0.22$0.21$0.25$0.00
CAPEX per Share$0.58$0.21$0.14$0.09$0.07$0.16

ARM Historical Valuation Ratios

6 years
Metric (FY)TTM20252024202320222021
Price to Earnings (P/E)242.12141.58426.12118.96113.54160.65
Price to Book (P/B)29.0116.424.6315.3917.570
Price to Sales (P/S)48.6527.9840.3323.2723.0630.75
Enterprise Value to EBITDA180.81122.27344.1172.5163.990
EV to Sales48.1527.5539.8122.7722.790
EV to Operating Cash Flow118.56278.09118.0782.54134.480
EV to Free Cash Flow168.42620.23135.994.42160.810
Enterprise Value$248.26B$110.40B$128.70B$61.00B$61.59B$0.00

ARM Historical Profitability Ratios

6 years
Metric (FY)TTM20252024202320222021
Return on Equity (ROE)13.00%11.58%5.78%12.94%15.47%0.00%
Return on Invested Capital (ROIC)7.33%11.31%2.21%9.58%11.36%0.00%
Return on Tangible Assets11.16%11.06%4.98%10.26%11.76%0.00%
Earnings Yield0.42%0.71%0.23%0.84%0.88%0.62%
Free Cash Flow Yield0.59%0.16%0.73%1.04%0.61%1.71%
Dividend Yield0.00%0.00%0.00%0.00%0.00%1.20%

ARM Historical Liquidity & Financial Strength

6 years
Metric (FY)TTM20252024202320222021
Current Ratio5.255.22.792.62.220
Interest Coverage000000
Income Quality2.010.53.561.410.833.18
Debt to Equity0.060.050.040.050.070
Debt to Assets4.33%3.99%2.85%3.19%4.01%0.00%
Net Debt to EBITDA-1.87-1.91-4.54-1.59-0.770

ARM Historical Efficiency Ratios

6 years
Metric (FY)TTM20252024202320222021
Receivables Turnover2.582.112.862.32.10
Payables Turnover4.623.27933.860
Inventory Turnover000000
Days Sales Outstanding141.58172.89127.46158.73174.20
Days Payables Outstanding79.08111.6340.56121.6794.570
Days of Inventory on Hand000000

ARM Historical Market Metrics

6 years
Metric (FY)TTM20252024202320222021
Enterprise Value to EBITDA180.81122.27344.1172.5163.990
Market Cap$250.83B$112.13B$130.39B$62.33B$62.33B$62.33B
Enterprise Value$248.26B$110.40B$128.70B$61.00B$61.59B$0.00
Dividend Yield0.00%0.00%0.00%0.00%0.00%1.20%
Payout Ratio0.00%0.00%0.00%0.00%0.00%193.30%

Frequently Asked Questions

How does Arm Holdings plc American Depositary Shares’s P/E ratio compare with its history?

On this page, ARM's current P/E is 242.1, compared with a multi-year average around 200.5. A higher P/E versus its own history is a calculated premium versus that average—not a conclusion that the stock is expensive. Cross-check profitability (ROE/ROIC), liquidity (current ratio), and leverage (debt-to-equity) so the multiple is read with those published figures.

What is Arm Holdings plc American Depositary Shares market cap?

Market cap is the market value of a company's equity and is commonly calculated as share price multiplied by shares outstanding. The latest market cap shown in the table is $250.83B. Pair market cap with valuation multiples (P/E, P/B, P/S) so you can evaluate whether size also corresponds with "quality" and profitability. For a wider view across stocks, you can also use the stock screener.

How does Arm Holdings plc American Depositary Shares’s P/E compare with its industry?

There is no P/E Tickerplace rates as good. Compare the P/E on this page with Arm Holdings plc American Depositary Shares's own historical range (in the table) and with peers via the Screener and Compare tools. A higher or lower multiple versus peers is a calculated gap, not a recommendation.

How does Arm Holdings plc American Depositary Shares compare to its competitors in key financial ratios?

The fastest way to compare Arm Holdings plc American Depositary Shares with competitors is to use the built-in "Peers Comparison" section on this page and the Compare tool. Focus on a small set of ratios that work together: P/E for valuation, ROE/ROIC for profitability and capital efficiency, current ratio and interest coverage for liquidity and solvency, and debt-to-equity for leverage risk. When you see Arm Holdings plc American Depositary Shares outperform peers on profitability while keeping valuation and leverage reasonable, it often signals stronger fundamentals.

What do Arm Holdings plc American Depositary Shares's liquidity and leverage ratios show?

Liquidity and leverage figures on this page are published ratios, not a verdict that Arm Holdings plc American Depositary Shares is financially strong. Current ratio is about 5.25, which is above 1.0 and can indicate more comfortable short-term liquidity. Interest coverage is about 0.00, implying less buffer for servicing interest costs. Debt-to-equity is about 0.06, suggesting leverage is more moderate relative to a high-debt profile. Pair them with ROE/ROIC and cash-flow rows in the table. Tickerplace does not rate the company as a good or poor investment.

What do Arm Holdings plc American Depositary Shares's financial ratios say about its future growth?

Ratios are a way to see what the business is likely to sustain. Look for upward trends in profitability metrics (ROE and ROIC), improving earnings/cash-flow backed measures, and stable or strengthening liquidity. If Arm Holdings plc American Depositary Shares is sustaining strong returns (for example ROE at 13.00% and ROIC at 7.33%) while debt levels and interest coverage remain manageable, growth expectations may be more credible. If valuation multiples expand while returns weaken, the market may be pricing optimistic growth ahead of results.