TacticScaleWhat Arrow Electronics Does & How It Makes Money (ARW)
Updated October 2026 · reflects Arrow Electronics's latest reported financials
Global distributor of electronic components and enterprise computing solutions. Arrow earns money by buying electronic components and enterprise computing products from suppliers and reselling them at a margin to manufacturers, resellers and service providers.
How Arrow Electronics makes money
Arrow earns money by buying electronic components and enterprise computing products from suppliers and reselling them at a margin to manufacturers, resellers and service providers. It adds further revenue from value-added services such as engineering, integration, logistics, marketing and training.
What Arrow Electronics does
Arrow Electronics, founded in 1935 and based in Centennial, Colorado, is a technology distributor serving customers across the Americas, Europe, the Middle East, Africa and Asia Pacific. It operates two segments. Global Components distributes semiconductors; interconnect, passive and electromechanical products such as capacitors, resistors, relays, switches and connectors; and computing and memory products. Global Enterprise Computing Solutions provides datacenter, cloud, security and analytics solutions, plus engineering and integration support, warehousing and logistics, marketing resources and authorized training. Its customers include original equipment manufacturers, value-added resellers, managed service providers and contract manufacturers. As a distributor, Arrow's results depend on electronics demand and supply cycles.
Products & services
- Semiconductor distribution
- Interconnect, passive and electromechanical components
- Computing and memory products
- Datacenter and cloud solutions
- Security and analytics solutions
- Engineering, integration and logistics services
What is Arrow Electronics worth?
On an owner-earnings DCF, Arrow Electronics's most-likely value is about $299 versus a recent price near $228 (31% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$196) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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