ARW Valuation

Arrow Electronics Inc

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130.030

+1.32(1.026%)1D

Overview
Forecast
Valuation
Earnings

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 11.14 is considered Fairly compared with the five-year average of 8.74. The fair price of Arrow Electronics Inc (ARW) is between 97.03 to 135.67 according to relative valuation methord.

Relative Value

Fair Zone

97.03-135.67

Current Price：129.64

Fair

11.22

Trailing

Forward

7.77

EV/EBITDA

Arrow Electronics Inc. (ARW) has a current EV/EBITDA of 7.77. The 5-year average EV/EBITDA is 6.86. The thresholds are as follows: Strongly Undervalued below 4.32, Undervalued between 4.32 and 5.59, Fairly Valued between 8.13 and 5.59, Overvalued between 8.13 and 9.40, and Strongly Overvalued above 9.40. The current Forward EV/EBITDA of 7.77 falls within the Historic Trend Line -Fairly Valued range.

8.95

EV/EBIT

Arrow Electronics Inc. (ARW) has a current EV/EBIT of 8.95. The 5-year average EV/EBIT is 7.77. The thresholds are as follows: Strongly Undervalued below 4.75, Undervalued between 4.75 and 6.26, Fairly Valued between 9.28 and 6.26, Overvalued between 9.28 and 10.80, and Strongly Overvalued above 10.80. The current Forward EV/EBIT of 8.95 falls within the Historic Trend Line -Fairly Valued range.

0.22

Arrow Electronics Inc. (ARW) has a current PS of 0.22. The 5-year average PS is 0.22. The thresholds are as follows: Strongly Undervalued below 0.18, Undervalued between 0.18 and 0.20, Fairly Valued between 0.24 and 0.20, Overvalued between 0.24 and 0.27, and Strongly Overvalued above 0.27. The current Forward PS of 0.22 falls within the Historic Trend Line -Fairly Valued range.

18.74

P/OCF

Arrow Electronics Inc. (ARW) has a current P/OCF of 18.74. The 5-year average P/OCF is 10.25. The thresholds are as follows: Strongly Undervalued below -10.08, Undervalued between -10.08 and 0.09, Fairly Valued between 20.42 and 0.09, Overvalued between 20.42 and 30.58, and Strongly Overvalued above 30.58. The current Forward P/OCF of 18.74 falls within the Historic Trend Line -Fairly Valued range.

4.94

P/FCF

Arrow Electronics Inc. (ARW) has a current P/FCF of 4.94. The 5-year average P/FCF is 10.61. The thresholds are as follows: Strongly Undervalued below -17.97, Undervalued between -17.97 and -3.68, Fairly Valued between 24.90 and -3.68, Overvalued between 24.90 and 39.19, and Strongly Overvalued above 39.19. The current Forward P/FCF of 4.94 falls within the Historic Trend Line -Fairly Valued range.

Arrow Electronics Inc (ARW) has a current Price-to-Book (P/B) ratio of 1.12. Compared to its 3-year average P/B ratio of 1.17 , the current P/B ratio is approximately -4.72% higher. Relative to its 5-year average P/B ratio of 1.32, the current P/B ratio is about -15.15% higher. Arrow Electronics Inc (ARW) has a Forward Free Cash Flow (FCF) yield of approximately 14.94%. Compared to its 3-year average FCF yield of 8.55%, the current FCF yield is approximately 74.78% lower. Relative to its 5-year average FCF yield of 9.35% , the current FCF yield is about 59.87% lower.

1.13

P/B

Median3y

1.17

Median5y

1.32

14.94

FCF Yield

Median3y

8.55

Median5y

9.35

Competitors Valuation Multiple

The average P/S ratio for ARW's competitors is 0.37, providing a benchmark for relative valuation. Arrow Electronics Inc Corp (ARW) exhibits a P/S ratio of 0.22, which is -40.15% above the industry average. Given its robust revenue growth of -1.59%, 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

0.83

49.36%

465.30M

Performance Decomposition

Market capitalization of ARW increased by 5.13% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.18 to 17.68.

The secondary factor is the Revenue Growth, contributed -1.59%to the performance.

Overall, the performance of ARW in the past 1 year is driven by P/E Change. Which is more unsustainable.

-1.59%

6.92B → 6.81B

Revenue Growth

-2.50%

1.20 → 1.17

Margin Expansion

9.22%

16.18 → 17.68

P/E Change

5.13%