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: $215.00 DETAILS
HIGH: $260.00
LOW: $165.00
MEDIAN: $220.00
CONSENSUS: $215.00
UPSIDE: 4.32%
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 7.8% below fair value
Current Price $206.10
Bear Case $178.90 13.2% downside ($178.90 - $206.10) / $206.10 = -13.2% $15.10 × 12x P/E
Fair Value $223.62 8.5% upside ($223.62 - $206.10) / $206.10 = 8.5% $15.10 × 15x P/E
Bull Case $268.35 30.2% upside ($268.35 - $206.10) / $206.10 = 30.2% $15.10 × 18x P/E

Adjust Assumptions

15.0x
15.1$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 13.6x

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 $215.00 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $223.62 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