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Arrow Electronics Inc
NYSE:ARW

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Arrow Electronics Inc
NYSE:ARW
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Price: 184.52 USD -1.76% Market Closed
Market Cap: $9.4B

EV/GP

3.5
Current
41%
More Expensive
vs 3-y average of 2.5

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
3.5
=
Enterprise Value
$10.8B
/
Gross Profit
$3.5B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
3.5
=
Enterprise Value
$10.8B
/
Gross Profit
$3.5B

Valuation Scenarios

Arrow Electronics Inc is trading above its 3-year average

If EV/GP returns to its 3-Year Average (2.5), the stock would be worth $130.92 (29% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-29%
Maximum Upside
+144%
Average Upside
43%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 3.5 $184.52
0%
3-Year Average 2.5 $130.92
-29%
5-Year Average 2.5 $132.29
-28%
Industry Average 8.6 $451.04
+144%
Country Average 6.5 $341.28
+85%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
US
Arrow Electronics Inc
NYSE:ARW
9.4B USD 3.5 16.5
US
TD Synnex Corp
NYSE:SNX
18.2B USD 4.4 18.6
US
CDW Corp
NASDAQ:CDW
17.6B USD 4.4 16.5
JP
Daiwa Tsushin Co Ltd
TSE:7116
2.7T JPY 2.8 17.3
ZA
Datatec Ltd
JSE:DTC
16.5B ZAR 0.7 12.4
CN
Unisplendour Corp Ltd
SZSE:000938
91.5B CNY 7.5 54.3
TW
WT Microelectronics Co Ltd
TWSE:3036
258.1B TWD 6.1 19.4
US
Avnet Inc
NASDAQ:AVT
6.6B USD 3.7 31.6
CN
Shenzhen Huaqiang Industry Co Ltd
SZSE:000062
38.6B CNY 22.4 83.4
TW
WPG Holdings Ltd
TWSE:3702
169.6B TWD 7.5 17.5
JP
Canon Marketing Japan Inc
TSE:8060
762.4B JPY 2.9 16.8

Market Distribution

Lower than 77% of companies in the United States of America
Percentile
23rd
Based on 9 428 companies
23rd percentile
3.5
Low
0 — 4.2
Typical Range
4.2 — 10.6
High
10.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 4.2
Median 6.5
70th Percentile 10.6
Max 1 764 211.7

Arrow Electronics Inc
Glance View

Arrow Electronics Inc., a Fortune 500 company headquartered in Centennial, Colorado, unfolds its narrative as a global powerhouse in the realm of electronic components and solutions. At its core, Arrow functions as a distributor and value-added service provider, linking a vast array of manufacturers with both commercial and industrial customers. Its business model pivots around sourcing components such as semiconductors, passive and electromechanical devices, and computing solutions from a network of over 1,000 suppliers. Arrow then leverages its extensive logistics capabilities and technological expertise to deliver these critical parts to businesses operating in diverse sectors—ranging from aerospace and automotive to telecommunications and healthcare. This seamless blend of distribution and services underpins its role in facilitating innovation and driving the supply chains of cutting-edge technologies. What sets Arrow Electronics apart is its astute approach to integrating services and solutions that go beyond mere distribution. The company caters to the intricate needs of its customers by offering design engineering, materials planning, and logistics services—endeavoring to transform abstract concepts into functional products, thus embedding itself deeper into clients' operational processes. This value-added approach extends to advanced computing capabilities, including cloud-based services and the Internet of Things (IoT), which further solidifies Arrow's position at the frontier of technological evolution. Revenue streams flourish through this intricate mosaic of products and services, where Arrow excels not just as a middleman but as a pivotal partner in the lifecycle of electronic product development and deployment. This intricate business model ensures that Arrow Electronics remains a critical node in the ever-expanding network of global technology supply chains.

ARW Intrinsic Value
248.65 USD
Undervaluation 26%
Intrinsic Value
Price $184.52
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