Is Arrow Electronics, Inc. overvalued or undervalued?

As of 31 October 2025, Arrow Electronics, Inc. has moved from a fair to attractive valuation grade. The company is currently considered undervalued based on its valuation metrics, including a P/E ratio of 27, an EV to EBITDA ratio of 15.51, and a Price to Book Value of 2.21. In comparison to peers, Arrow's P/E ratio is higher than TD SYNNEX Corp.'s 17.48 and Avnet, Inc.'s 14.04, indicating that while it is priced higher than some competitors, it still presents an attractive investment opportunity.
Despite recent underperformance against the S&P 500, with a 1Y return of -6.00% compared to the index's 19.89%, Arrow has shown resilience over the longer term, achieving a 5Y return of 43.21% versus the S&P's 109.18%. This suggests that while the stock may be currently undervalued, it has the potential for recovery and growth in the future.