Arrow Electronics Valuation
| ARW Stock | USD 121.71 0.33 0.27% |
At this time, the firm appears to be fairly valued. Arrow Electronics shows a prevailing Real Value of $125.89 per share. The current price of the firm is $121.71. Our model approximates the value of Arrow Electronics from analyzing the firm fundamentals such as Current Valuation of 10.51 B, return on equity of 0.16, and Profit Margin of 0.03 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor buying undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Arrow Electronics' valuation include:
Price Book 1.1553 | Enterprise Value 10.5 B | Enterprise Value Ebitda 6.15 | Price Sales 0.2026 | Forward PE 4.7037 |
Fairly Valued
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.
Our valuation method for Arrow Electronics is useful when determining the fair value of the Arrow stock, which is usually 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 121.71 | Real 125.89 | Target 131.17 | Hype 121.63 |
The real value of Arrow Stock, also known as its intrinsic value, is the underlying worth of Arrow Electronics Company, which is reflected in its stock price. It is based on Arrow Electronics' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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. When choosing an evaluation method for Arrow Electronics, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Arrow Electronics Investments |
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Arrow Valuation Trend
Knowing Arrow Electronics' actual value is paramount for traders to make sound investment determinations. Arrow Electronics' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Arrow Electronics' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Arrow Electronics' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Arrow Market Cap
Arrow Electronics is rated second in market capitalization category among related companies. Market capitalization of Information Technology industry is presently estimated at about 25.92 Billion. Arrow Electronics totals roughly 6.59 Billion in market capitalization claiming about 25% of equities under Information Technology industry.Arrow Electronics Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Arrow Electronics's current stock value. Our valuation model uses many indicators to compare Arrow Electronics value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Arrow Electronics competition to find correlations between indicators driving Arrow Electronics's intrinsic value. More Info.Arrow Electronics is rated fifth in price to earning category among related companies. It is rated fifth in price to book category among related companies fabricating about 0.22 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Arrow Electronics is roughly 4.45 . Price To Book Ratio is likely to drop to 1.07 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Arrow Electronics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Arrow Electronics' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Arrow Electronics' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Arrow Electronics' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Arrow Electronics and how it compares across the competition.
About Arrow Electronics Valuation
The stock valuation mechanism determines the current worth of Arrow Electronics on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Arrow Electronics. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Arrow Electronics based exclusively on its fundamental and basic technical indicators. By analyzing Arrow Electronics's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Arrow Electronics's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, 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, relevant financial multiples and ratios, and then comparing them to Arrow Electronics's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.1 B | 4.4 B | |
| Pretax Profit Margin | 0.04 | 0.02 | |
| Operating Profit Margin | 0.04 | 0.03 | |
| Net Profit Margin | 0.03 | 0.03 | |
| Gross Profit Margin | 0.13 | 0.18 |
8 Steps to conduct Arrow Electronics' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Arrow Electronics' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Arrow Electronics' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Arrow Electronics' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Arrow Electronics' revenue streams: Identify Arrow Electronics' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Arrow Electronics' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Arrow Electronics' growth potential: Evaluate Arrow Electronics' management, business model, and growth potential.
- Determine Arrow Electronics' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Arrow Electronics' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Arrow Electronics Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, 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 | -0.375 | |
| 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. Arrow Electronics' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Arrow Electronics' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
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.When determining whether Arrow Electronics is a strong investment it is important to analyze Arrow Electronics' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Arrow Electronics' future performance. For an informed investment choice regarding Arrow Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arrow Electronics. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. For more information on how to buy Arrow Stock please use our How to Invest in Arrow Electronics guide.You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Complementary 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.
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Is Arrow Electronics' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arrow Electronics. If investors know Arrow will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arrow Electronics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.38) | Earnings Share 15.84 | Revenue Per Share 587.433 | Quarterly Revenue Growth (0.16) | Return On Assets 0.0456 |
The market value of Arrow Electronics is measured differently than its book value, which is the value of Arrow that is recorded on the company's balance sheet. Investors also form their own opinion of Arrow Electronics' value that differs from its market value or its book value, called intrinsic value, which is Arrow Electronics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arrow Electronics' market value can be influenced by many factors that don't directly affect Arrow Electronics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Arrow Electronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arrow Electronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arrow Electronics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.