Arrow Electronics - Comparative Multiple Analysis

Arrow Electronics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Arrow Electronics

WikiWealth compares Arrow Electronics's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Arrow Electronics's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Arrow Electronics.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Arrow Electronics's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Arrow Electronics's Analysis


How does this work? The Comparative Investment Analysis determines the value of Arrow Electronics by comparing Arrow Electronics financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Arrow Electronics.

See the Arrow Electronics cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Arrow Electronics.

Also, see the Arrow Electronics's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Arrow Electronics's valuation conclusion for a quick summary.