Latest Ratios: P/E Ratio 18.1x · EV/EBITDA 12.0x · ROE 9.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.1B | $5.8B | $6.1B | $7.0B | $6.8B | $9.9B | $7.7B | $7.1B | $6.1B | $7.2B | $6.6B |
| Enterprise Value | $12.9B | $8.5B | $9.3B | $10.6B | $10.4B | $12.3B | $9.5B | $9.8B | $9.1B | $9.8B | $8.8B |
| P/E Ratio → | 18.07 | 10.08 | 15.52 | 7.72 | 4.80 | 8.89 | 13.10 | — | 8.51 | 17.95 | 12.55 |
| P/S Ratio | 0.33 | 0.19 | 0.22 | 0.21 | 0.18 | 0.29 | 0.27 | 0.24 | 0.21 | 0.27 | 0.28 |
| P/B Ratio | 1.55 | 0.86 | 1.04 | 1.19 | 1.22 | 1.84 | 1.49 | 1.46 | 1.13 | 1.44 | 1.47 |
| P/FCF | — | — | 5.86 | 11.21 | — | 29.33 | 6.19 | 10.01 | 51.96 | — | 33.66 |
| P/OCF | 157.66 | 89.89 | 5.38 | 9.88 | — | 23.52 | 5.63 | 8.25 | 22.36 | 57.95 | 18.24 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.28 | 0.33 | 0.32 | 0.28 | 0.36 | 0.33 | 0.34 | 0.31 | 0.36 | 0.37 |
| EV / EBITDA | 11.97 | 7.93 | 9.97 | 6.39 | 4.63 | 7.00 | 8.80 | 32.78 | 6.80 | 9.04 | 8.66 |
| EV / EBIT | 13.72 | 9.15 | 9.72 | 7.07 | 5.04 | 7.82 | 10.64 | 106.11 | 8.07 | 10.98 | 10.17 |
| EV / FCF | — | — | 8.95 | 16.98 | — | 36.49 | 7.72 | 13.79 | 77.32 | — | 45.22 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 11.2% | 11.2% | 11.8% | 12.5% | 13.0% | 12.2% | 11.1% | 11.4% | 12.5% | 12.5% | 13.2% |
| Operating Margin | 3.0% | 3.0% | 2.8% | 4.4% | 5.6% | 4.5% | 3.1% | 0.4% | 3.9% | 3.5% | 3.6% |
| Net Profit Margin | 1.9% | 1.9% | 1.4% | 2.7% | 3.8% | 3.2% | 2.0% | -0.7% | 2.4% | 1.5% | 2.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.1% | 9.1% | 6.7% | 15.7% | 26.1% | 21.1% | 11.7% | -4.0% | 13.8% | 8.5% | 12.1% |
| ROA | 2.2% | 2.2% | 1.8% | 4.2% | 6.9% | 6.1% | 3.5% | -1.2% | 4.2% | 2.6% | 3.8% |
| ROIC | 7.6% | 7.6% | 6.2% | 11.8% | 18.3% | 15.8% | 9.2% | 1.0% | 10.8% | 9.8% | 9.9% |
| ROCE | 9.7% | 9.7% | 8.7% | 16.4% | 23.5% | 19.3% | 11.1% | 1.3% | 13.1% | 11.6% | 11.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.46 | 0.46 | 0.58 | 0.65 | 0.67 | 0.49 | 0.44 | 0.61 | 0.65 | 0.66 | 0.62 |
| Debt / EBITDA | 2.87 | 2.87 | 3.64 | 2.30 | 1.67 | 1.50 | 2.08 | 9.99 | 2.61 | 3.04 | 2.74 |
| Net Debt / Equity | — | 0.42 | 0.55 | 0.61 | 0.64 | 0.45 | 0.37 | 0.55 | 0.55 | 0.51 | 0.51 |
| Net Debt / EBITDA | 2.58 | 2.58 | 3.44 | 2.17 | 1.59 | 1.37 | 1.74 | 8.98 | 2.23 | 2.37 | 2.22 |
| Debt / FCF | — | — | 3.09 | 5.77 | — | 7.16 | 1.52 | 3.78 | 25.36 | — | 11.57 |
| Interest Coverage | 4.34 | 4.34 | 3.54 | 4.54 | 11.15 | 11.90 | 6.53 | 0.35 | 5.23 | 5.67 | 5.75 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.36 | 1.36 | 1.46 | 1.39 | 1.48 | 1.40 | 1.44 | 1.52 | 1.55 | 1.56 | 1.54 |
| Quick Ratio | 1.09 | 1.09 | 1.08 | 1.00 | 1.05 | 1.03 | 1.08 | 1.10 | 1.11 | 1.15 | 1.12 |
| Cash Ratio | 0.02 | 0.02 | 0.01 | 0.02 | 0.01 | 0.02 | 0.04 | 0.04 | 0.06 | 0.09 | 0.08 |
| Asset Turnover | — | 1.06 | 1.28 | 1.52 | 1.71 | 1.76 | 1.68 | 1.76 | 1.67 | 1.63 | 1.68 |
| Inventory Turnover | 5.39 | 5.39 | 5.23 | 5.58 | 6.07 | 7.20 | 7.75 | 7.37 | 6.70 | 7.10 | 7.24 |
| Days Sales Outstanding | — | 233.51 | 170.33 | 134.92 | 121.15 | 117.77 | 117.18 | 107.07 | 110.02 | 111.23 | 103.36 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.5% | 9.9% | 6.4% | 13.0% | 20.8% | 11.2% | 7.6% | — | 11.7% | 5.6% | 8.0% |
| FCF Yield | — | — | 17.1% | 8.9% | — | 3.4% | 16.1% | 10.0% | 1.9% | — | 3.0% |
| Buyback Yield | 1.6% | 2.8% | 4.4% | 11.0% | 15.3% | 9.3% | 6.3% | 5.7% | 4.0% | 2.4% | 3.3% |
| Total Shareholder Yield | 1.6% | 2.8% | 4.4% | 11.0% | 15.3% | 9.3% | 6.3% | 5.7% | 4.0% | 2.4% | 3.3% |
| Shares Outstanding | — | $52M | $54M | $57M | $65M | $73M | $79M | $84M | $88M | $90M | $92M |
Cyclical Inventory Obsolescence Risk
Based on current market data, Arrow Electronics trades at a forward P/E of 10.79, which appears to reflect a significant valuation discount compared to peers like Avnet and TD Synnex, suggesting the market remains skeptical of the sustainability of recent earnings growth in a volatile semiconductor cycle.
The discrepancy between the TTM P/E of 19.68 and the forward multiple implies that investors are pricing in a sharp normalization of earnings following the recent revenue surge. This valuation gap warrants investigation into whether the market is correctly identifying a cyclical peak or if it is unfairly penalizing the stock for its historical distribution-heavy business model.
According to historical financial data, Arrow Electronics has struggled to maintain ROIC above 3.5%, a trend that highlights the difficulty of generating superior returns on invested capital within a low-margin, high-volume distribution environment that requires significant capital deployment into working capital and inventory management.
The persistent low ROIC suggests that the company's competitive moat, while technically significant through design-in services, does not translate into high economic profit. Investors should monitor whether management's focus on share repurchases is a strategic response to this inability to deploy capital into higher-yielding organic growth opportunities.
As reported in recent quarterly filings, the cash conversion cycle has fluctuated significantly, reaching 52 days in 2026Q1, which underscores the company's extreme sensitivity to inventory turnover and the ongoing challenge of balancing supplier payment terms against customer collection cycles in a shifting global demand environment.
The recent improvement in the cash conversion cycle appears to be a primary driver of the company's improved cash flow profile. However, the high DSO of 227 days suggests that credit risk management remains a critical operational lever that could quickly deteriorate if macroeconomic conditions weaken.
Based on the latest balance sheet disclosures, Arrow Electronics has maintained a D/E ratio of 0.36, a figure that appears notably conservative for an industrial distributor and suggests a strategic effort to preserve balance sheet flexibility during periods of heightened semiconductor industry volatility and inventory accumulation.
This deleveraging trend provides a buffer against interest rate sensitivity, though it raises questions about whether the company is under-utilizing its balance sheet to drive growth. The interest coverage ratio of 8.21 in 2026Q1 indicates that debt service remains comfortable, provided that operating margins do not face further structural compression.
The price-to-earnings ratio is frequently misapplied to Arrow Electronics, as it obscures the massive impact of working capital swings on reported net income, leading analysts to misinterpret cyclical inventory-driven earnings volatility as a permanent shift in the company's underlying profitability or long-term growth trajectory.
Instead of relying on P/E, investors should prioritize EV/EBITDA or free cash flow yield, which better account for the company's capital structure and the cash-intensive nature of its distribution model. Focusing on P/E risks ignoring the reality that earnings are often a function of inventory accounting rather than pure operational performance.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ARW stock.
Arrow Electronics, Inc.'s current P/E ratio is 18.1x. The historical average is 15.5x. This places it at the 85th percentile of its historical range.
Arrow Electronics, Inc.'s current EV/EBITDA is 12.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.3x.
Arrow Electronics, Inc.'s return on equity (ROE) is 9.1%. The historical average is 9.5%.
Based on historical data, Arrow Electronics, Inc. is trading at a P/E of 18.1x. This is at the 85th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Arrow Electronics, Inc. has 11.2% gross margin and 3.0% operating margin.
Arrow Electronics, Inc.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.