Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$343.29
Based on 7.3% avg growth
INTRINSIC VALUE TODAY
$213.15
1.1% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 10.1x Exit PE.
Valuation Analysis: ARW is currently trading at $210.85, which is considered fair relative to its 30-day fair value range of $205.45 to $218.86. From a valuation perspective, the stock is trading at a discount (Forward PE: 8.8) compared to its historical average (10.1). Remarkably, the market is currently pricing in an annual earnings decline of 4.4% over the next few years. This pessimistic expectation contrasts with the company's recent 46.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, ARW is in a uptrend. Immediate support is located at $201.31, while resistance sits at $221.04.
Market Sentiment: The stock scores a mixed 47/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $235.00 (+11.5%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$205.45 -
$218.86
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
75.8%
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Arrow Electronics Inc. is a provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. It has one of the world's broadest portfolios of product offerings available from electronic components and enterprise computing solutions suppliers, coupled with a range of services, solutions, and software, the company helps industrial and commercial customers introduce products, reduce their time to market, and enhance their overall competitiveness. The company has two business segments, the components business and the enterprise computing solutions.