Arrow Electronics Valuation
| ARW Stock | USD 117.00 0.25 0.21% |
At this time, the firm appears to be undervalued. Arrow Electronics shows a prevailing Real Value of $122.14 per share. The current price of the firm is $117.0. Our model approximates the value of Arrow Electronics from analyzing the firm fundamentals such as Current Valuation of 9.21 B, return on equity of 0.0845, and Profit Margin of 0.02 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Arrow Electronics' valuation include:
Undervalued
Today
Please note that Arrow Electronics' price fluctuation is very steady at this time. Calculation of the real value of Arrow Electronics is based on 3 months time horizon. Increasing Arrow Electronics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Arrow stock is determined by what a typical buyer is willing to pay for full or partial control of Arrow Electronics. Since Arrow Electronics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Arrow Stock. However, Arrow Electronics' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 117.0 | Real 122.14 | Target 127.17 | Hype 117.2 | Naive 118.37 |
The intrinsic value of Arrow Electronics' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Arrow Electronics' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Arrow Electronics helps investors to forecast how Arrow stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Arrow Electronics more accurately as focusing exclusively on Arrow Electronics' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Arrow Electronics' intrinsic value based on its ongoing forecasts of Arrow Electronics' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Arrow Electronics' closest peers.
Arrow Electronics Cash |
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Arrow Valuation Trend
Analysing the historical paterns of Arrow Electronics' enterprise value and its market capitalization is a good way to estimate and gauge the value of Arrow Electronics over time and is usually enough for investors to make rational market timing decisions.
Arrow Revenue by Product
Arrow Electronics Total Value Analysis
Arrow Electronics is presently projected to have company total value of 9.21 B with market capitalization of 6.19 B, debt of 3.81 B, and cash on hands of 176.91 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Arrow Electronics fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
9.21 B | 6.19 B | 3.81 B | 176.91 M |
Arrow Electronics Investor Information
About 99.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.04. Some equities with similar Price to Book (P/B) outperform the market in the long run. Arrow Electronics has Price/Earnings To Growth (PEG) ratio of 0.88. The entity recorded earning per share (EPS) of 8.98. The firm last dividend was issued on the 17th of December 1986. Arrow Electronics had 2:1 split on the 16th of October 1997. Based on the key indicators related to Arrow Electronics' liquidity, profitability, solvency, and operating efficiency, Arrow Electronics is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0291 | 0.04 |
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| Operating Income | 1.8 B | 1.7 B |
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Arrow Electronics Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Arrow Electronics has an asset utilization ratio of 152.38 percent. This indicates that the Company is making $1.52 for each dollar of assets. An increasing asset utilization means that Arrow Electronics is more efficient with each dollar of assets it utilizes for everyday operations.Arrow Electronics Ownership Allocation
The majority of Arrow Electronics outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Arrow Electronics to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Arrow Electronics. Please pay attention to any change in the institutional holdings of Arrow Electronics as this could imply that something significant has changed or is about to change at the company. Please note that on December 18, 2024, Representative Michael McCaul of US Congress acquired $50k to $100k worth of Arrow Electronics's common stock.Arrow Electronics Profitability Analysis
The company reported the last year's revenue of 33.11 B. Total Income to common stockholders was 909.36 M with profit before taxes, overhead, and interest of 3.48 B.About Arrow Electronics Valuation
Our relative valuation model uses a comparative analysis of Arrow Electronics. We calculate exposure to Arrow Electronics's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Arrow Electronics's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.8 B | 5 B | |
| Pretax Profit Margin | 0.03 | 0.02 | |
| Operating Profit Margin | 0.04 | 0.03 | |
| Net Profit Margin | 0.02 | 0.03 | |
| Gross Profit Margin | 0.14 | 0.18 |
Arrow Electronics Growth Indicators
Investing in growth stocks can be very risky. If the company such as Arrow Electronics does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 57 M | |
| Quarterly Earnings Growth Y O Y | -0.467 | |
| Forward Price Earnings | 4.7037 |
Arrow Electronics Current Valuation Indicators
Valuation refers to the process of determining the present value of Arrow Electronics and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Arrow we look at many different elements of the entity such as Arrow's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Arrow Electronics, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Arrow Electronics' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Arrow Electronics' worth.Additional Tools for Arrow Stock Analysis
When running Arrow Electronics' price analysis, check to measure Arrow Electronics' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arrow Electronics is operating at the current time. Most of Arrow Electronics' value examination focuses on studying past and present price action to predict the probability of Arrow Electronics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arrow Electronics' price. Additionally, you may evaluate how the addition of Arrow Electronics to your portfolios can decrease your overall portfolio volatility.