Looking into the current session, ARM Holdings Inc. (NASDAQ:ARM) shares are trading at $119.95, after a 5.29% increase. Moreover, over the past month, the stock went up by 8.78%, but in the past year, decreased by 26.19%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.
<img src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2026/1769115631_0.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Past Year Chart" width="600" height="600" original-src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2026/1769115631_0.png"/>
<h3>Evaluating ARM Holdings P/E in Comparison to Its Peers</h3>
The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E could indicate that shareholders do not expect the stock to perform better in the future or it could mean that the company is undervalued. 
ARM Holdings has a better P/E ratio of 146.05 than the aggregate P/E ratio of 112.6 of the Semiconductors &amp; Semiconductor Equipment industry. Ideally, one might believe that ARM Holdings Inc. might perform better in the future than it's industry group, but it's probable that the stock is overvalued. 
<img src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2026/1769115631_1.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Guage" original-src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2026/1769115631_1.png"/>
In conclusion, the price-to-earnings ratio is a useful metric for analyzing a company's market performance, but it has its limitations. While a lower P/E can indicate that a company is undervalued, it can also suggest that shareholders do not expect future growth. Additionally, the P/E ratio should not be used in isolation, as other factors such as industry trends and business cycles can also impact a company's stock price. Therefore, investors should use the P/E ratio in conjunction with other financial metrics and qualitative analysis to make informed investment decisions.

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ARM Holdings Inc. (NASDAQ:ARM) shares are currently trading at $119.95, reflecting a 5.29% increase. Over the past month, the stock rose by 8.78%, but it has decreased by 26.19% over the past year. The company's P/E ratio stands at 146.05, higher than the industry average of 112.6, suggesting potential overvaluation. While the P/E ratio is a useful metric for assessing market performance, it should be considered alongside other financial metrics and qualitative factors for informed investment decisions.

- ARM Holdings Inc. shares are currently trading at $119.95, up 5.29% recently, but down 26.19% over the past year.  
- The company's P/E ratio of 146.05 exceeds the industry average of 112.6, suggesting potential overvaluation despite expectations of better future performance.  
- The P/E ratio is a valuable metric, yet it should be used alongside other financial metrics and qualitative analysis for informed investment decisions.

Price Over Earnings Overview: ARM Holdings