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 its market position. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 27, an EV to EBITDA of 15.51, and a Price to Book Value of 2.21, all of which suggest that the stock may be trading below its intrinsic value compared to peers.
In comparison to its peers, Arrow Electronics has a higher P/E ratio than TD SYNNEX Corp. at 17.48 and Resideo Technologies, Inc. at 24.70, but lower than its other peer, Avnet, Inc., which has a P/E of 14.04. This indicates that while Arrow is priced higher than some competitors, it still offers attractive valuation metrics in the context of its industry. Although return data is not available for a direct comparison with the S&P 500, the overall valuation narrative supports the conclusion that Arrow Electronics, Inc. is undervalued in the current market.