ARW Valuation

Arrow Electronics Inc

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111.450

-0.1(-0.090%)1D

ARW Relative Valuation

ARW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ARW is overvalued; if below, it's undervalued.

Historical Valuation

Arrow Electronics Inc (ARW) is now in the Fair zone, suggesting that its current forward PE ratio of 9.87 is considered Fairly compared with the five-year average of 8.74. The fair price of Arrow Electronics Inc (ARW) is between 93.55 to 130.95 according to relative valuation methord.

Relative Value

Fair Zone

93.55-130.95

Current Price：111.55

Fair

9.86

Trailing

Forward

7.64

EV/EBITDA

Arrow Electronics Inc. (ARW) has a current EV/EBITDA of 7.64. The 5-year average EV/EBITDA is 6.84. The thresholds are as follows: Strongly Undervalued below 4.30, Undervalued between 4.30 and 5.57, Fairly Valued between 8.11 and 5.57, Overvalued between 8.11 and 9.38, and Strongly Overvalued above 9.38. The current Forward EV/EBITDA of 7.64 falls within the Historic Trend Line -Fairly Valued range.

8.52

EV/EBIT

Arrow Electronics Inc. (ARW) has a current EV/EBIT of 8.52. The 5-year average EV/EBIT is 7.74. The thresholds are as follows: Strongly Undervalued below 4.73, Undervalued between 4.73 and 6.24, Fairly Valued between 9.25 and 6.24, Overvalued between 9.25 and 10.75, and Strongly Overvalued above 10.75. The current Forward EV/EBIT of 8.52 falls within the Historic Trend Line -Fairly Valued range.

111.45

Arrow Electronics Inc. (ARW) has a current PS of 111.45. The 5-year average PS is 0.79. The thresholds are as follows: Strongly Undervalued below -15.32, Undervalued between -15.32 and -7.27, Fairly Valued between 8.84 and -7.27, Overvalued between 8.84 and 16.89, and Strongly Overvalued above 16.89. The current Forward PS of 111.45 falls within the Strongly Overvalued range.

12.06

P/OCF

Arrow Electronics Inc. (ARW) has a current P/OCF of 12.06. The 5-year average P/OCF is 8.46. The thresholds are as follows: Strongly Undervalued below -0.53, Undervalued between -0.53 and 3.97, Fairly Valued between 12.96 and 3.97, Overvalued between 12.96 and 17.46, and Strongly Overvalued above 17.46. The current Forward P/OCF of 12.06 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Arrow Electronics Inc. (ARW) has a current P/FCF of 0.00. The 5-year average P/FCF is 9.79. The thresholds are as follows: Strongly Undervalued below -19.17, Undervalued between -19.17 and -4.69, Fairly Valued between 24.27 and -4.69, Overvalued between 24.27 and 38.75, and Strongly Overvalued above 38.75. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

Arrow Electronics Inc (ARW) has a current Price-to-Book (P/B) ratio of 0.90. Compared to its 3-year average P/B ratio of 1.15 , the current P/B ratio is approximately -21.96% higher. Relative to its 5-year average P/B ratio of 1.30, the current P/B ratio is about -31.06% higher. Arrow Electronics Inc (ARW) has a Forward Free Cash Flow (FCF) yield of approximately 1.64%. Compared to its 3-year average FCF yield of 8.82%, the current FCF yield is approximately -81.43% lower. Relative to its 5-year average FCF yield of 7.97% , the current FCF yield is about -79.44% lower.

0.90

P/B

Median3y

1.15

Median5y

1.30

-0.18

FCF Yield

Median3y

8.82

Median5y

7.97

Competitors Valuation Multiple

The average P/S ratio for ARW's competitors is 60.46, providing a benchmark for relative valuation. Arrow Electronics Inc Corp (ARW) exhibits a P/S ratio of 111.45, which is 84.35% above the industry average. Given its robust revenue growth of 13.03%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ARW.N

Arrow Electronics Inc

Resideo Technologies Inc

Climb Global Solutions Inc

Alliance Entertainment Holding Corp

6.42

-3.88%

325.62M

Performance Decomposition

Market capitalization of ARW decreased by 7.25% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 6.82B to 7.71B.

The secondary factor is the Margin Expansion, contributed -4.05%to the performance.

Overall, the performance of ARW in the past 1 year is driven by Revenue Growth. Which is more sustainable.

13.03%

6.82B → 7.71B

Revenue Growth

-4.05%

1.48 → 1.42

Margin Expansion

-16.23%

14.67 → 12.29

P/E Change

-7.25%