Arrow Electronics Inc
NYSE: ARW · TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION
Updated 2026-06-05
Arrow Electronics Inc (ARW) Stock Valuation Analysis
Fair value estimate, historical valuation range, and quality signals for ARW.
Valued
Fundamentals support the current valuation. Strong combination of growth, quality, and price.
ARW historical valuation range
Where current P/E sits in ARW's own 5Y range.
ARW intrinsic value (DCF)
DCF-based fair value estimate vs current market price.
Standard discounted cash flow models produce unreliable output for unprofitable or near-breakeven companies. Revenue-based multiples such as P/S and EV/Sales, combined with the historical valuation position above, give a more reliable read for this stock.
Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.
ARW valuation signals
Quick-read green flags, caution flags, and risks based on current metrics.
P/E Ratio — History
Current: 16.23x
P/S Ratio — History
Current: 0.35x
Is ARW overvalued in 2026?
Arrow Electronics Inc (ARW) currently trades at $202.56 per share with a market capitalization of $11,596,156,000.00. Based on our multi-factor framework, the stock looks attractively valued with a Smart Value Score of 75/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.
The stock trades at a P/E ratio of 16.2x, above its 5-year median of 13.6x. The PEG ratio of 0.95 suggests earnings growth is outpacing the multiple, a classic sign of undervaluation.
Looking at its own history, ARW is currently trading more expensive than 87% of the last 5Y on P/E. This places it in the 87th percentile of its historical range, a zone where forward returns have typically been muted.
A standard DCF model does not produce reliable output for ARW under current conditions. For unprofitable or near-breakeven companies, revenue-based multiples such as EV/Sales and historical P/S percentile are more informative than intrinsic value calculations.
Financial quality is a concern. The Piotroski F-Score of 3/9 flags weakening fundamentals that deserve closer scrutiny before the valuation case can be fully trusted.
Bottom line: ARW looks attractively valued on our framework, with a Smart Value Score of 75/100. The combination of reasonable price, healthy growth, and quality fundamentals makes it worth serious consideration.
Frequently asked questions
Is ARW overvalued?
ARW scores 75/100 on our Smart Value Score (Grade B+), a strong overall profile. A standard DCF is unreliable here given the profitability profile, so valuation leans on revenue-based measures like EV/Sales and the P/S percentile below.
What is ARW's fair value?
A standard DCF is unreliable for ARW given its current profitability profile. Revenue-based approaches like EV/Sales or the historical P/S percentile are more informative for this stock.
What P/E ratio does ARW trade at?
ARW trades at a P/E of 16.2x on trailing twelve-month earnings, against a 5-year median of 13.6x. P/E is what you pay per dollar of profit, and sitting above its own median means the stock is pricier than usual relative to its earnings.
Is ARW a buy based on valuation?
Our Smart Value rating for ARW is Buy, from a Smart Value Score of 75/100 that blends growth, quality, and valuation. The rating leans on growth and financial strength, and valuation is usually the weakest leg for a name scoring this high. This is research to inform your decision, not personalized financial advice.
How does ARW's valuation compare to its history?
On P/E, ARW sits in the 87th percentile of its own 5Y range, historically expensive relative to where it has traded. A high percentile means today's multiple is near the top of its historical band.
What is ARW's Smart Value Score?
ARW's Smart Value Score is 75/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.