Is Avnet, Inc. overvalued or undervalued?

As of 8 May 2025, Avnet, Inc. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial metrics. The P/E ratio stands at 12, which is slightly below the peer average of 11.56 for Avnet, while its EV to EBITDA ratio is 8.44 compared to Resideo Technologies, Inc.'s much higher 14.14, indicating that Avnet is not as expensive as some peers but still lacks compelling value.
With a Price to Book Value of 0.88 and a Dividend Yield of 2.79%, Avnet's financial health shows some potential for returns, but the overall valuation suggests caution. The company's recent stock performance has lagged behind the S&P 500 over the past year, with a return of -1.30% compared to the index's 10.26%, reinforcing the notion that Avnet may not be the best investment at its current price of 51.72.