Arrow Electronics, Inc.

Valuation Analysis

About the Company

Arrow Electronics, Inc. sources and engineers technology for manufacturers, service providers, and users of enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes electronic components, including semiconductor products and related services; interconnect, passive, and electromechanical products comprising capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. Its Global Enterprise Computing Solutions segment offers computing solutions, such as datacenter, cloud, security, and analytics solutions

Arrow Electronics, Inc. Stock at a Glance

Arrow Electronics, Inc. (ARW) is currently trading at $226.78 with a market capitalization of $11.6B. The trailing P/E ratio stands at 16.23x, with a forward P/E of 10.63x. The 52-week range spans from $101.79 to $233.30; the current price is 2.8% below the yearly high. Year-over-year revenue growth stands at +39.0%. The net profit margin stands at 2.17%.

💰 Dividend

Arrow Electronics, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

4 analysts rate Arrow Electronics, Inc. (ARW) on consensus: Hold. The average price target is $219.50, implying -3.21% from the current price. Analyst price targets range from $165.00 to $260.00.

Arrow Electronics, Inc.: The Investment Case in Detail

Arrow Electronics, Inc. (ARW) operates in the Technology — specifically Electronics & Computer Distribution — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 39% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

With a net margin of just 2.17%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss.

Valuation in Context

With a PEG ratio of 0.95, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 10.63x is meaningfully below the trailing 16.23x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 95% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility.

Trading Data

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