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 valuation ratios, 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 to peers, TD SYNNEX Corp. has a lower P/E ratio of 17.48, while Resideo Technologies, Inc. has a P/E of 24.70, suggesting that Arrow may offer better value relative to its earnings potential.
Despite recent stock performance lagging behind the S&P 500, with a 1-year return of -7.77% compared to the index's 19.89%, the long-term outlook appears more promising, as evidenced by a 5-year return of 37.51% versus the S&P's 109.18%. This discrepancy highlights potential for recovery and growth, reinforcing the case for Arrow's undervaluation in the current market.