NXP Semiconductors looks cheaper than Arm on all three valuation measures in the supplied data. The figures also show differences in profitability, dividends and company size.
Arm Holdings and NXP Semiconductors are both in the semiconductor industry, but their valuations differ sharply. At the November 5, 2026 adjusted close, Arm traded at US$166.72 per share and had a market cap of US$178.1 billion. NXP closed at US$244.43 per share, with a market cap of US$61.6 billion.
NXP has the lower P/E, PEG and P/B ratios. That makes it the cheaper-looking stock on these measures, but it doesn’t prove NXP is undervalued or will outperform Arm. The figures don’t explain what expectations or risks are reflected in either company’s valuation.
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Arm Holdings plc American Depositary Shares
ARM.US
Information Technology
$191.80
$204.84B
1D
-5.28%
1W
-18.69%
NXP Semiconductors NV
NXPI.US
Information Technology
$265.01
$66.80B
1D
+0.84%
1W
+5.29%
Investor takeaway: NXP has lower supplied valuation multiples, higher reported TTM ROE and a dividend yield. Arm is the larger company by market cap. Both have a Buy consensus label in the supplied table, but consensus labels and analyst targets don’t determine which stock offers better value. You can review the company pages for Arm and NXP Semiconductors.
NXP’s P/E is 19.2, compared with Arm’s 219.4
NXP also has a lower PEG, at 0.54 versus 1.58 for Arm, and a lower P/B, at 5.10 versus 21.41. All three measures point in the same direction, but they don’t capture every factor that can affect a company’s prospects or share price.
Bull case
NXP’s P/E of 19.2, PEG of 0.54 and P/B of 5.10 are all below Arm’s. NXP also reports TTM ROE of 28.7% and a dividend yield of 1.66%. These figures add context, but they don’t prove the shares are a bargain.
Bear case
Lower multiples don’t explain why the market values NXP less highly, or whether its earnings and book value will hold up. The snapshot doesn’t include a business outlook or details about company-specific risks.
NXP screens cheaper across the supplied multiples
The three valuation measures all show lower figures for NXP. Its P/E is 19.2, compared with 219.4 for Arm. Its PEG is 0.54 versus 1.58, and its P/B is 5.10 versus 21.41. By these measures, NXP is the cheaper-looking stock.
That’s a comparison of the figures, not a conclusion about fair value. The data don’t explain the market’s expectations for either company or show which stock will perform better.
Profitability, dividends and scale add context
NXP reports TTM ROE of 28.7%, compared with 13.4% for Arm. Its dividend yield is 1.66%, while Arm’s is 0.00%. Arm is larger by market cap, at US$178.1 billion compared with NXP’s US$61.6 billion.
Both companies have a Buy consensus label in the supplied table. The listed analyst targets are US$290.71 for Arm and US$299.93 for NXP. These are figures from the snapshot, not guarantees or a substitute for understanding each business.
A valuation gap is a comparison, not a verdict
NXP has lower figures on all three supplied valuation measures, but the snapshot offers little insight into why. It doesn’t include forecasts, operating trends or detailed information about company-specific risks.
Use the multiples as a starting point for further research. Then consider whether each company’s business and prospects support its share price. The figures show which stock screens cheaper, but they don’t prove it’s undervalued.
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