Arrow Electronics, Inc. logo ARW - Arrow Electronics, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 6
HOLD 9
SELL 2
STRONG
SELL
0
| PRICE TARGET: $208.33 DETAILS
HIGH: $240.00
LOW: $165.00
MEDIAN: $220.00
CONSENSUS: $208.33
DOWNSIDE: 4.14%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 40% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Mild
Trading 2.1% below fair value
Current Price $217.33
Bear Case $177.57 18.3% downside ($177.57 - $217.33) / $217.33 = -18.3% $15.10 × 12x P/E
Fair Value $221.96 2.1% upside ($221.96 - $217.33) / $217.33 = 2.1% $15.10 × 15x P/E
Bull Case $266.35 22.6% upside ($266.35 - $217.33) / $217.33 = 22.6% $15.10 × 18x P/E

Adjust Assumptions

15.0x
15.1$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 14.4x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $208.33 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $221.96 per share.

Warnings

The company's reported profits differ from official accounting profits by 38%. Check what costs are being left out of the adjusted number.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples