Value Sense
ARW
Arrow Electronics, Inc. (ARW)
Last Price$104.6(2.7%)
Market Cap$5,527.0M
WACC
7.0%
Cost of Equity
10.1%
Cost of Debt
1.5%
Debt to Equity
56.5%
Beta
0.6
Stock quality
5/10
Good
ARW
is 175.9% undervalued
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ARW WACC

Recent WACC calculation

as of Mar 11, 2025
Cost of Equity
% share of Total Capital
10.1%
63.9%
Risk-free rate
4.3%
Beta
1.3
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
1.5%
36.1%
Average Cost of Debt
1.9%
Effective Tax Rate
22.4%
WACC
7.0%

WACC dynamics

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ARW Cost of Equity

Recent Cost of Equity calculation

as of Mar 11, 2025
Risk-free rate
4.3%
Beta
1.3
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
10.1%

Cost of Equity dynamics

ARW vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Arrow Electronics, Inc. logo
Arrow Electronics, Inc.ARW
7.0%
(15.7%)
(54.1%)
1.4%
Median Peer Set
8.2%
(5.4%)
0.0%
2.2%
TD SYNNEX Corporation logo
TD SYNNEX CorporationSNX
11.3%
1.6%
19.9%
1.2%
ScanSource, Inc. logo
ScanSource, Inc.SCSC
10.9%
(13.9%)
(11.4%)
2.4%
Climb Global Solutions, Inc. logo
Climb Global Solutions, Inc.CLMB
9.6%
32.3%
52.7%
4.0%
Insight Enterprises, Inc. logo
Insight Enterprises, Inc.NSIT
9.0%
(5.2%)
(9.4%)
2.9%
ICZOOM Group Inc. logo
ICZOOM Group Inc.IZM
8.6%
(17.0%)
N/A
(1.3%)
Snap One Holdings Corp. logo
Snap One Holdings Corp.SNPO
7.7%
(5.6%)
133.3%
(2.0%)
Taitron Components Incorporated logo
Taitron Components IncorporatedTAIT
7.5%
(27.5%)
(42.6%)
30.2%
PC Connection, Inc. logo
PC Connection, Inc.CNXN
7.5%
(1.7%)
4.4%
3.1%
ADDvantage Technologies Group, Inc. logo
ADDvantage Technologies Group, Inc.AEY
7.4%
56.1%
N/A
0.5%
Avnet, Inc. logo
Avnet, Inc.AVT
6.5%
(10.5%)
(34.2%)
2.1%

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FAQ

What is Arrow Electronics, Inc.'s discount rate as of Mar 11, 2025?

As of Mar 11, 2025, Arrow Electronics, Inc.'s discount rate is 6.98%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Arrow Electronics, Inc.'s capital structure and risk profile.

What is Arrow Electronics, Inc.'s weighted average cost of capital (WACC)?

Arrow Electronics, Inc.'s WACC as of Mar 11, 2025, is 6.98%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Arrow Electronics, Inc.'s cost of equity?

Arrow Electronics, Inc.'s cost of equity is 10.1%, as of Mar 11, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.