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 9.81 is considered Fairly compared with the five-year average of 8.75. The fair price of Arrow Electronics Inc (ARW) is between 100.42 to 137.93 according to relative valuation methord.
Relative Value
Fair Zone
100.42-137.93
Current Price：110.95
Fair
9.85
PE
1Y
3Y
5Y
Trailing
Forward
7.62
EV/EBITDA
Arrow Electronics Inc. (ARW) has a current EV/EBITDA of 7.62. 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 9.39, and Strongly Overvalued above 9.39. The current Forward EV/EBITDA of 7.62 falls within the Historic Trend Line -Fairly Valued range.
8.49
EV/EBIT
Arrow Electronics Inc. (ARW) has a current EV/EBIT of 8.49. The 5-year average EV/EBIT is 7.76. The thresholds are as follows: Strongly Undervalued below 4.76, Undervalued between 4.76 and 6.26, Fairly Valued between 9.25 and 6.26, Overvalued between 9.25 and 10.75, and Strongly Overvalued above 10.75. The current Forward EV/EBIT of 8.49 falls within the Historic Trend Line -Fairly Valued range.
0.18
PS
Arrow Electronics Inc. (ARW) has a current PS of 0.18. 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 0.18 falls within the Undervalued range.
11.99
P/OCF
Arrow Electronics Inc. (ARW) has a current P/OCF of 11.99. The 5-year average P/OCF is 8.50. The thresholds are as follows: Strongly Undervalued below -0.43, Undervalued between -0.43 and 4.03, Fairly Valued between 12.96 and 4.03, Overvalued between 12.96 and 17.43, and Strongly Overvalued above 17.43. The current Forward P/OCF of 11.99 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 9.45. The thresholds are as follows: Strongly Undervalued below -19.52, Undervalued between -19.52 and -5.03, Fairly Valued between 23.93 and -5.03, Overvalued between 23.93 and 38.41, and Strongly Overvalued above 38.41. 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 0.89. Compared to its 3-year average P/B ratio of 1.14 , the current P/B ratio is approximately -21.59% higher. Relative to its 5-year average P/B ratio of 1.29, the current P/B ratio is about -30.94% higher. Arrow Electronics Inc (ARW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 9.30%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 7.82% , the current FCF yield is about -100.00% lower.
0.90
P/B
Median3y
1.14
Median5y
1.29
1.65
FCF Yield
Median3y
9.30
Median5y
7.82
Competitors Valuation Multiple
The average P/S ratio for ARW's competitors is , providing a benchmark for relative valuation. Arrow Electronics Inc Corp (ARW) exhibits a P/S ratio of , which is NaN% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ARW decreased by 1.60% 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.
People Also Watch
FAQ
Is Arrow Electronics Inc (ARW) currently overvalued or undervalued?
What is Arrow Electronics Inc (ARW) fair value?
How does ARW's valuation metrics compare to the industry average?
What is the current P/B ratio for Arrow Electronics Inc (ARW) as of Dec 05 2025?
What is the current FCF Yield for Arrow Electronics Inc (ARW) as of Dec 05 2025?
What is the current Forward P/E ratio for Arrow Electronics Inc (ARW) as of Dec 05 2025?