Is Arrow Electronics, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Arrow Electronics, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company is currently considered undervalued, supported by a P/E ratio of 27, an EV to EBITDA of 15.51, and a Price to Book Value of 2.21. In comparison, peers such as TD SYNNEX Corp. have a P/E of 17.48, while Avnet, Inc. shows a P/E of 14.04, highlighting Arrow's relatively higher valuation metrics.
Despite recent stock performance showing a 1-week return of 4.98% compared to the S&P 500's 1.70%, the longer-term outlook reflects a decline, with a 1-year return of -13.12% against the S&P's 14.08%. This contrast suggests that while Arrow Electronics may be undervalued based on its current metrics, it has faced challenges in maintaining competitive returns over the past year.