Question 1

What is Arm's P/S ratio?

Accepted Answer

Arm (ARM) P/S ratio is 74.4× as of June 5, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month revenue, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/S ratio calculated?

Accepted Answer

P/S = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Revenue, or equivalently Share Price ÷ TTM Revenue Per Share. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/S ratio?

Accepted Answer

The price-to-sales (P/S) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) revenue. It is calculated as market cap ÷ TTM revenue (equivalent to share price ÷ TTM revenue per share). Because the denominator (revenue) cannot be negative, P/S is widely used to value unprofitable or pre-profit companies and to make cross-sector comparisons.

Question 4

What is a good P/S ratio for Arm?

Accepted Answer

A "good" P/S depends heavily on profit margin and growth: software and other high-margin businesses often command 5–15× sales, while low-margin retailers and commodity producers typically trade below 1×. Compare against sector peers rather than absolute thresholds. For Arm specifically, the relevant sector benchmark is the current sector median of 5.7×.

Question 5

Is Arm's P/S ratio high or low?

Accepted Answer

Arm's P/S ratio of 74.4× is above its own 5-year average of 32.3× and above the sector median of 5.7×. That places the current reading at the 99th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Arm's historical P/S ratio range?

Accepted Answer

In the available daily series, Arm (ARM) P/S ratio has ranged from a low of 18.5× in 2023 to a high of 89.4× in 2026. The 5-year average is 32.3× and the 5-year median is 32.7×.

Question 7

What was Arm's P/S ratio in 2026?

Accepted Answer

Arm (ARM) P/S ratio at the end of 2026 was 32.7×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month revenue figure available at that date.

Question 8

Why does Arm's P/S ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (revenue). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2026	$160.81B	$4.92B	32.7×	+4.6×	Mar 31, 2026
2025	$112.66B	$4.01B	28.1×	-12.4×	Mar 31, 2025
2024	$131.02B	$3.23B	40.5×	+17.3×	Mar 31, 2024
2023	$62.33B	$2.68B	23.3×	—	Mar 31, 2023


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P/S Ratio for Arm (ARM)

P/S Ratio daily chart for Arm (ARM)

Historical P/S Ratio for Arm (ARM) from 2023 to 2026

About P/S Ratio at Arm (ARM)

Arm P/S Ratio by Year

Arm P/S Ratio 2026: 32.7×

Arm P/S Ratio 2025: 28.1×

Arm P/S Ratio 2024: 40.5×

Arm P/S Ratio 2023: 23.3×

Sector peers by P/S Ratio — chart

Sector peers by P/S Ratio — table

Frequently asked questions

Arm (ARM) Key Financials

P/S Ratio daily chart for Arm (ARM)

Historical P/S Ratio for Arm (ARM) from 2023 to 2026

About P/S Ratio at Arm (ARM)

Arm P/S Ratio by Year

Arm P/S Ratio 2026: 32.7×

Arm P/S Ratio 2025: 28.1×

Arm P/S Ratio 2024: 40.5×

Arm P/S Ratio 2023: 23.3×

Sector peers by P/S Ratio — chart

Sector peers by P/S Ratio — table

Frequently asked questions

+What is Arm's P/S ratio?

+How is the P/S ratio calculated?

+What is the P/S ratio?

+What is a good P/S ratio for Arm?

+Is Arm's P/S ratio high or low?

+What is Arm's historical P/S ratio range?

+What was Arm's P/S ratio in 2026?

+Why does Arm's P/S ratio change over time?

Arm (ARM) Key Financials