Stock fact sheet · data as of
Arrow Electronics, Inc. (ARW): fair value, margin of safety and Wheel Score
Technology · Technology Distributors · United States · Value
Is ARW undervalued?
Arrow Electronics, Inc. (ARW) closed at 220.17 on 16 Oct 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 333.17, which puts the price 34% below it. 5 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 8 models disagree widely: EPV gives 175.77 while Payback Time gives 532.20. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files ARW under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for ARW
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 199.80 | -9% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 220.45 | +0% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 492.70 | +124% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 184.72 | -16% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 414.94 | +88% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 444.75 | +102% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 532.20 | +142% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 175.77 | -20% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 63.47 | -71% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 225.00 | +2% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health ARW scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 3.0 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 5.9%, ROE 8.7%, ROA 2.0% - with debt at 0.47 times equity and a free-cash-flow yield of 8.0%.
Arrow Electronics, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Global Components 74%, Global ECS 26% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 5.9% |
|---|---|---|---|
| GLS Moat | 3.0 / 10 | ROE | 8.7% |
| Debt / equity | 0.47 | ROA | 2.0% |
| Free-cash-flow yield | 8.0% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 81: Prime
ARW scores 81 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (5/15), the option premium on offer (20/20) and how easily the stock trades (16/20).
Implied volatility is 49% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 4,879 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 525k shares a day on a market cap of $11.2B, with a beta of 1.17; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 34% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 5 / 15 | moat 3.0/10 | |
| Premium | 20 / 20 | implied volatility 49% | |
| Stability | 16 / 20 | 525k shares/day, $11.2B cap, beta 1.17 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Arrow Electronics, Inc. reports earnings on 29 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Technology Distributors
The 10 companies below are the closest to Arrow Electronics, Inc. by market cap within the Technology Distributors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AVT Avnet, Inc. | 92.94 | 49.05 | -89% | 54Fair | $7.6B |
| SNX TD Synnex Corp | 263.91 | 358.07 | +26% | 76Good | $21.1B |
| CNXN PC Connection, Inc. | 90.82 | 44.67 | -103% | 50Fair | $2.3B |
| SCSC ScanSource, Inc. | 60.56 | 116.13 | +48% | 78Good | $1.2B |
| CLMB Climb Global Solutions, Inc. | 32.94 | 35.01 | +6% | 39No options | $615M |
| EACO EACO Corporation | 125.00 | 130.55 | +4% | 39No options | $608M |
| SPRS Surge Components, Inc. | 3.99 | 3.09 | -29% | 24No options | $23M |
| TAIT Taitron Components Incorporated | 1.95 | 3.03 | +36% | 39No options | $10M |
| PGNT Paragon Technologies, Inc. | 4.46 | 38.03 | +88% | 39No options | $8M |
| IZM ICZOOM Group Inc. | 0.8426 | 19.09 | +96% | 39No options | $1M |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about ARW
Is ARW undervalued right now?
By the GLS models, yes: at 220.17 the stock is 34% below the average fair value of 333.17 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of ARW and what does it mean?
ARW scores 81 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for ARW?
333.17 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Arrow Electronics, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (after the close), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ARW have listed options, and how liquid are they?
Yes. The nightly snapshot found 298 listed contracts with 4,879 open interest across all expiries and implied volatility of 49% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.