diff --git a/drivers/clocksource/arm_arch_timer.c b/drivers/clocksource/arm_arch_timer.c
index d2120fcf1f3f..39cdda2c9a98 100644
--- a/drivers/clocksource/arm_arch_timer.c
+++ b/drivers/clocksource/arm_arch_timer.c
@@ -818,15 +818,24 @@ static void arch_timer_evtstrm_enable(int divider)
 
 static void arch_timer_configure_evtstream(void)
 {
-	int evt_stream_div, pos;
+	int evt_stream_div, lsb;
+
+	/*
+	 * As the event stream can at most be generated at half the frequency
+	 * of the counter, use half the frequency when computing the divider.
+	 */
+	evt_stream_div = arch_timer_rate / ARCH_TIMER_EVT_STREAM_FREQ / 2;
+
+	/*
+	 * Find the closest power of two to the divisor. If the adjacent bit
+	 * of lsb (last set bit, starts from 0) is set, then we use (lsb + 1).
+	 */
+	lsb = fls(evt_stream_div) - 1;
+	if (lsb > 0 && (evt_stream_div & BIT(lsb - 1)))
+		lsb++;
 
-	/* Find the closest power of two to the divisor */
-	evt_stream_div = arch_timer_rate / ARCH_TIMER_EVT_STREAM_FREQ;
-	pos = fls(evt_stream_div);
-	if (pos > 1 && !(evt_stream_div & (1 << (pos - 2))))
-		pos--;
 	/* enable event stream */
-	arch_timer_evtstrm_enable(min(pos, 15));
+	arch_timer_evtstrm_enable(max(0, min(lsb, 15)));
 }
 
 static void arch_counter_set_user_access(void)