
NXP Semiconductors looks cheaper than Arm on all three valuation measures provided. That gap is worth examining, but it doesn’t tell you which stock is the better investment.
Arm Holdings and NXP Semiconductors are both semiconductor companies, but their valuations differ sharply. At the October 29, 2026 close, Arm traded at US$228.77 per share, with a market cap of US$244.3 billion. NXP closed at US$266.00 per share, with a market cap of US$63.5 billion. NXP’s P/E, PEG and P/B ratios are lower, while Arm’s analyst target is higher relative to its share price. These figures offer a comparison, not a forecast or a complete picture of either business.
Investor takeaway: NXP has lower values for all three multiples provided: P/E, PEG and P/B. That doesn’t prove it’s undervalued, that its shares will outperform, or that Arm’s higher valuation is unjustified. The figures don’t capture every difference in growth prospects, business risks or market expectations.
Stocks in this list
Live snapshots — open any name for the full quote and Wealth Awesome price forecast.
Arm Holdings plc American Depositary Shares
ARM.US
Information Technology
$228.77
$244.33B
1D
-3.02%
1W
+8.89%
NXP Semiconductors NV
NXPI.US
Information Technology
$266.00
$63.47B
1D
+5.69%
1W
+11.86%
NXP’s P/E is 19.8, compared with Arm’s 235.8
NXP also has lower PEG and P/B ratios: 0.49 and 6.69, compared with Arm’s 1.94 and 28.31. On this snapshot, NXP looks cheaper across all three measures. But valuation multiples alone can’t tell you which stock will deliver better returns.
Bull case
NXP’s P/E of 19.8, PEG of 0.49 and P/B of 6.69 are all below Arm’s corresponding figures. NXP’s reported ROE TTM is also higher: 27.9% versus 13.4%. These figures add useful context, but they aren’t a reason on their own to buy the stock.
Bear case
NXP’s lower multiples don’t show that its earnings or book value deserve a higher valuation. Arm’s much higher multiples may reflect expectations that this snapshot can’t assess. Both companies have a reported dividend yield of 0.00%, and the figures don’t explain the risks behind either valuation.
NXP looks cheaper on the supplied multiples
The snapshot puts NXP below Arm on each of the three valuation measures provided.
NXP looks cheaper on these multiples, but that doesn’t prove it’s undervalued or that Arm is overpriced. Multiples compare market prices with measures of earnings, growth and book value. This snapshot doesn’t explain all the expectations behind them.
Business figures and analyst ratings add context
Both companies are classified in Information Technology and the Semiconductors & Semiconductor Equipment industry group. NXP’s reported ROE TTM is 27.9%, compared with Arm’s 13.4%. Both have a dividend yield of 0.00%. The supplied analyst consensus is Buy for both, with targets of US$300.28 for NXP and US$290.71 for Arm. These are reported figures, not guarantees of future performance. For company details, see Arm Holdings and NXP Semiconductors.
A valuation gap is a starting point, not a verdict
At the October 29, 2026 close, Arm’s share price was US$228.77 and its market cap was US$244.3 billion. NXP closed at US$266.00, with a market cap of US$63.5 billion. Share prices alone don’t show which stock is cheaper because the companies have different share counts and market values. The supplied multiples favour NXP on relative valuation, but the snapshot doesn’t show whether the gap reflects different growth expectations, risks or other factors. Treat these figures as a screening tool, not a conclusion.
Best next step
Keep exploring this topic
If you want to go deeper, these are the most useful follow-up pages and tools for this topic.
Broker comparison
Best trading platforms in Canada
Compare $0-commission brokers before you act on a ticker story.
Safe cash
Best GIC rates in Canada
If the story makes you want to de-risk, compare guaranteed rates next.
HISA roundup
Best high-interest savings accounts
Keep dry powder in a no-fee savings account instead of chequing.
TFSA room
Check TFSA contribution room
Shelter the next contribution before you buy.

Wealth Awesome
Timely coverage of Canadian stocks, earnings, dividends, and market movers for DIY investors. Stories are checked against exchange data and public filings.
View Full Profile →✅ Reviewed by Certified Financial Professionals
This content has been reviewed by CFA® charterholders and Certified Financial Planners (CFP®) with over a decade of experience in Canadian financial markets. All information is fact-checked against official Canadian sources and regulations.
Why these credentials matter: CFA® charterholders complete 900+ hours of rigorous study in investment analysis and ethics. CFP® professionals are held to the highest standards of financial planning competency and fiduciary duty in Canada.
⚠️ Professional Disclaimer
This content is for educational purposes only and should not be considered personalized financial advice. While our team brings professional expertise, individual circumstances vary. For personalized guidance, consult with a qualified financial advisor, tax professional, or mortgage specialist.


