Is Arrow Electronics, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Arrow Electronics, Inc. has moved from expensive to attractive, indicating a more favorable assessment of its stock. The company appears undervalued, particularly when considering its P/E ratio of 27, which is lower than the peer average of approximately 29.6 for comparable firms like TD SYNNEX Corp. and Resideo Technologies, Inc. Additionally, Arrow's EV to EBITDA ratio stands at 15.51, compared to the industry average of 16.65, further supporting its attractive valuation.
In terms of performance, Arrow Electronics has shown a mixed return profile, with a year-to-date return of 5.33% compared to the S&P 500's 13.30%, and a one-year return of -13.12% versus the S&P 500's 14.08%. This suggests that while the stock may be undervalued, it has underperformed the broader market in the recent past. Overall, with a Price to Book Value of 2.21 and an EV to Sales ratio of 0.56, Arrow Electronics presents a compelling case for potential investors looking for value in the electronics and appliances sector.