Is Arrow Electronics, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Arrow Electronics, Inc. moved from fair to attractive, indicating a more favorable assessment of the company's worth. The company appears to be undervalued, especially 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, which is competitive against peers such as TD SYNNEX Corp. at 9.58, suggesting potential for growth relative to its valuation.
In terms of return performance, Arrow Electronics has underperformed against the S&P 500 over the past year, with a return of -6.00% compared to the S&P 500's 19.89%. However, over a five-year horizon, Arrow's return of 43.21% indicates strong long-term growth, albeit still trailing the S&P 500's 109.18%. This combination of attractive valuation metrics and a mixed return profile suggests that Arrow Electronics, Inc. is currently positioned as an undervalued investment opportunity within the electronics and appliances sector.