ARM Valuation Multiples

ARM Overview

About ARM

Arm Holdings is the IP owner and developer of the ARM architecture, which is used in 99% of the world’s smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allow them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.

Founded

2018

HQ

Employees

8.3K

Website

arm.com

Sectors

SemiconductorsElectronic ComponentsAI Chips & HardwareDeepTechGenerative AI

Financials (LTM)

Revenue: $5B

EBITDA: $2B

EV

$129B

Valuation Multiples

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ARM Financials

ARM reported last 12-month revenue of $5B and EBITDA of $2B.

In the same LTM period, ARM generated $5B in gross profit, $2B in EBITDA, and $2B in net income.

ARM P&L

In the most recent fiscal year, ARM reported revenue of $4B and EBITDA of $2B.

ARM expects next 12-month revenue of XXX and NTM EBITDA of XXX

ARM Stock Performance

ARM has current market cap of $132B, and enterprise value of $129B.

ARM's stock price is $124.37.

ARM Valuation Multiples

ARM trades at 26.2x EV/Revenue multiple, and 55.7x EV/EBITDA.

ARM Financial Valuation Multiples

As of April 9, 2026, ARM has market cap of $132B and EV of $129B.

Equity research analysts estimate ARM's 2025E EV/Revenue multiple at XXX and 2025E EV/EBITDA multiple at XXX

ARM has a P/E ratio of 70.3x.

ARM Margins & Growth Rates

ARM's revenue in the last 12 month grew by 21%.

ARM's revenue per employee in the last FY averaged $0.5M, while opex per employee averaged $0.4M for the same period.

ARM's rule of 40 is 68% (metric relevant for SaaS companies only, counted as combined revenue growth rate and EBITDA margin).

ARM's rule of X is 99% (created by Bessemer, rule of X is another metric to measure SaaS companies, ~1.5x stronger vs. the traditional Rule of 40, counted as revenue growth rate multiplied by 2.5 plus EBITDA margin).

ARM Public Comps

See public comps and valuation multiples for other Semiconductors and Electronic Components comps.

ARM M&A Activity

ARM acquired XXX companies to date.

Last acquisition by ARM was on XXXXXXXX, XXXXX. ARM acquired XXXXXXXX for XXX (EV/Revenue multiple of XXX).

ARM Investment Activity

ARM invested in XXX companies to date.

ARM made its latest investment on XXXXXXXX, XXXXX. ARM invested in XXXXXXXX for XXX (EV/Revenue multiple of XXX).