Arrow ELECTRONICS, Inc. (ARW) intrinsic value & 10-year financials

Arrow ELECTRONICS, Inc. (ARW) has a Graham intrinsic value of $222.35 per share. At $214.61 on Oct 17, 2026, the stock trades 3% below that value. Over the last 10 fiscal years revenue grew 3.1% a year to $30.9B, with an average return on invested capital of 10.4%.

Graham intrinsic value
$222.35
Share price (Oct 17, 2026)
$214.61
Price vs Graham value
3% below
Market cap
$11.2B
Revenue (FY2025)
$30.9B
Revenue growth (10-yr CAGR)
3.1%
ROIC (10-yr avg)
10.4%
Free cash flow (FY2025)
-$37.2M

ARW 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $30.9B $571.3M $10.93 -$37.2M 2.7% 7.2%
FY2024 $27.9B $392.1M $7.29 $1.0B 2.8% 7.5%
FY2023 $33.1B $903.5M $15.84 $622.2M 4.4% 13.7%
FY2022 $37.1B $1.4B $21.80 -$111.9M 5.6% 19.3%
FY2021 $34.5B $1.1B $15.10 $335.9M 4.5% 16.5%
FY2020 $28.7B $584.4M $7.43 $1.2B 3.1% 9.5%
FY2019 $28.9B -$204.1M -$2.44 $714.8M 0.4% 1.4%
FY2018 $29.7B $716.2M $8.10 $137.4M 3.9% 12.0%
FY2017 $26.6B $402.0M $4.48 -$79.4M 3.5% 7.9%
FY2016 $23.5B $522.8M $5.68 $191.1M 3.7% 9.6%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

ARROW ELECTRONICS, INC. has demonstrated mature, steady growth, with revenue compounding at 3.1% annually over the past decade.

ARROW ELECTRONICS, INC. returns on capital have been average, hovering around 10.5% ROIC over the decade.

Over the decade, ARROW ELECTRONICS, INC. shows that management has aggressively returned capital to shareholders by retiring 43.2% of outstanding shares.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, ARROW ELECTRONICS, INC. is modeled at 7.5% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $222.35 per share.

ARW stock: frequently asked questions

What is the intrinsic value of Arrow ELECTRONICS, Inc. (ARW) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 7.5% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, ARW's intrinsic value is about $222.35 per share.

Is ARW stock undervalued?

At $214.61 (close on Oct 17, 2026), ARW trades 3% below its Graham value of $222.35. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Arrow ELECTRONICS, Inc. grown?

Revenue went from $23.5B in fiscal 2016 to $30.9B in fiscal 2025, a compound annual growth rate of 3.1%. Net income was $571.3M in fiscal 2025.

Does Arrow ELECTRONICS, Inc. generate free cash flow?

Arrow ELECTRONICS, Inc. generated -$37.2M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 7 of the last 10 reported years.

What is ARW's return on invested capital?

Average ROIC over the last 10 fiscal years was 10.4%, and average return on equity was 12.2%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this ARW data come from?

From Arrow ELECTRONICS, Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Aug 6, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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