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-0.00043004623472043 -0.00142504275128268 -0.00238393818481233 -0.00313509405282161 -0.00373677877002979 -0.000886693267464784 0.0160871492811451 0.0165304959148774
Stock impact report

ARM Appears Expensive to Its Industry: Is the Premium Warranted? [Yahoo! Finance]

Applied Optoelectronics, Inc. (AAOI) 
Last applied optoelectronics, inc. earnings: 2/27 04:10 pm Check Earnings Report
US:NASDAQ Investor Relations: investors.ao-inc.com/investor-relations
Company Research Source: Yahoo! Finance
The stock appears expensive and the forward-looking metrics also narrate the same tale. Zacks Investment Research Image Source: Zacks Investment Research Arm Holdings' Price/Earnings-to-Growth ratio (PEG) is 4.09 compared with the industry's 1.11, indicating that investors are paying nearly four times more for each unit of the stock's earnings growth. In the third quarter of fiscal 2026, ARM's adjusted earnings per share (EPS) increased 10% year over year to 43 cents, while its revenues rose 26%. It is a clear indication of significant operating leverage that the market is considering to price in. On the Enterprise value-to-Earnings Before Interest and Depreciation and Amortization (EV/EBITDA) ratio front, investors are paying a high premium value as the company trades at 131.25X, significantly higher than the industry's 29.88X. During the third quarter of fiscal 2026, the company's adjusted operating income grew 14% year over year to $505 million, showcasing its operating eff Show less Read more
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