Arm Holdings Plc ADR (ARM) is overvalued and Broadcom Inc (AVGO) is overvalued.
Both trade above our estimate of their intrinsic value. AVGO is the closer of the two: -63%, against -630% for ARM.
Values as of the 22 Sept 2026 close.
A 8.8x revenue multiple, adjusted for growth and margin, values the shares at $45.67; the price of $333.20 is 630% above that value.
Leak Score 43/100 on 3 of 12 signals
A 12.5x revenue multiple, adjusted for growth and margin, values the shares at $223.35; the price of $364.54 is 63% above that value.
Leak Score 68/100 on 10 of 12 signals
| Metric | ARM | AVGO |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $333.20 | $364.54 |
| Intrinsic value | $45.67 | $223.35 |
| Margin of safety | -630% | -63% |
| Leak Score | 43/100 (3/12) | 68/100 (10/12) |
| Market cap | $355.9B | $1.74T |
| Revenue growth, 5 years | 19.4% | 21.7% |
| Operating margin | 17.3% | 48.6% |
| Net margin | 20.3% | 42.9% |
| Return on equity | 13.4% | 44.3% |
| Debt to equity | 0.06 | 0.60 |
| P/E | 341.8x | 46.5x |
| Forward P/E | 108.7x | 18.9x |
| P/B | 41.2x | 17.5x |
| Dividend yield | — | 0.7% |