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 appears undervalued based on its valuation metrics, including 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 and an EV to EBITDA of 9.58, while Resideo Technologies, Inc. shows a P/E of 24.70 and an EV to EBITDA of 8.31, suggesting that Arrow may offer better value relative to its competitors.
Despite showing a negative return of -13.12% over the past year compared to the S&P 500's 14.08%, Arrow Electronics has outperformed the benchmark in the short term, with a 4.98% return over the past week versus the S&P 500's 1.70%. This recent performance may indicate a potential turnaround, reinforcing the attractiveness of the current valuation.