DCF Tool


Arrow Electronics Inc. – Business to Business Electronic Markets
the work arrow does goes into everything from cars to coffee makers. whether it’s something you've never seen before or the things you can’t live without, if it takes a charge, chances are it was built with arrow. when you think about the world of five years out, arrow is helping design it, build it and source it. we are a fortune 150 company with 2014 sales of $22.8 billion. our team includes 17,000 employees worldwide across more than 460 locations in 56 countries. we help the world’s best technology companies think “five years out,” working together to innovate the next big thing after the next big thing. are you thinking five years out? you should be working with us. learn more at http://www.arrow.com.
Analysis Results
Intrinsic Value $2,641.73
Latest Price $126.24
Relative Value 95% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 22.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 22.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 3.65 3.43
2024 4.47 3.93
2025 5.47 4.51
2026 6.69 5.18
2027 8.18 5.95
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 182 billion. This corresponds to a present value of 124 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 23.0 billion. Adding in the terminal value gives a total present value of 147 billion.

There are presently 55.7 million outstanding shares, so the intrinsic value per share is 2641.73.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 18,340,340,000
Current Cash 176,915,000
Current Liabilities 12,389,604,000
Current Debt 589,883,000
Non-Cash Working Capital (NCWC) 6,363,704,000
Change in NCWC 1,636,045,000
EBIT 2,089,899,000
Tax Provision 448,992,000
Depreciation and Amortization 187,382,000
Capital Expenditure -78,836,000
Unlevered Free Cash Flow 3,336,468,116
Current Assets 15,893,323,000
Current Cash 222,194,000
Current Liabilities 11,326,089,000
Current Debt 382,619,000
Non-Cash Working Capital (NCWC) 4,727,659,000
Change in NCWC 920,625,000
EBIT 1,575,723,000
Tax Provision 325,906,000
Depreciation and Amortization 195,120,000
Capital Expenditure -83,051,000
Unlevered Free Cash Flow 2,250,893,416
Current Assets 13,152,899,000
Current Cash 373,615,000
Current Liabilities 9,130,883,000
Current Debt 158,633,000
Non-Cash Working Capital (NCWC) 3,807,034,000
Change in NCWC -492,294,000
EBIT 914,491,000
Tax Provision 172,795,000
Depreciation and Amortization 189,058,000
Capital Expenditure -123,585,000
Unlevered Free Cash Flow 279,546,721
Current Assets 12,526,159,000
Current Cash 300,103,000
Current Liabilities 8,258,159,000
Current Debt 331,431,000
Non-Cash Working Capital (NCWC) 4,299,328,000
Change in NCWC -255,474,000
EBIT 914,214,000
Tax Provision 88,338,000
Depreciation and Amortization 189,790,000
Capital Expenditure -143,191,000
Unlevered Free Cash Flow 705,339,000
Current Assets 13,608,300,000
Current Cash 509,327,000
Current Liabilities 8,790,428,000
Current Debt 246,257,000
Non-Cash Working Capital (NCWC) 4,554,802,000
Change in NCWC 466,889,000
EBIT 1,209,145,000
Tax Provision 187,799,000
Depreciation and Amortization 186,384,000
Capital Expenditure -135,336,000
Unlevered Free Cash Flow 1,477,375,639
Current Assets 12,417,759,000
Current Cash 730,083,000
Current Liabilities 7,956,569,000
Current Debt 356,806,000
Non-Cash Working Capital (NCWC) 4,087,913,000
Change in NCWC 900,907,000
EBIT 1,044,168,000
Tax Provision 287,126,000
Depreciation and Amortization 153,599,000
Capital Expenditure -203,949,000
Unlevered Free Cash Flow 1,462,904,514
Current Assets 10,316,721,000
Current Cash 534,320,000
Current Liabilities 6,689,222,000
Current Debt 93,827,000
Non-Cash Working Capital (NCWC) 3,187,006,000
Change in NCWC 285,753,000
EBIT 939,714,000
Tax Provision 190,674,000
Depreciation and Amortization 159,195,000
Capital Expenditure -164,695,000
Unlevered Free Cash Flow 969,506,029
Current Assets 9,186,471,000
Current Cash 273,090,000
Current Liabilities 6,056,152,000
Current Debt 44,024,000
Non-Cash Working Capital (NCWC) 2,901,253,000
Change in NCWC 93,568,000
EBIT 900,284,000
Tax Provision 191,697,000
Depreciation and Amortization 155,754,000
Capital Expenditure -154,800,000
Unlevered Free Cash Flow 745,476,354
Current Assets 9,032,607,000
Current Cash 400,355,000
Current Liabilities 5,838,021,000
Current Debt 13,454,000
Non-Cash Working Capital (NCWC) 2,807,685,000
Change in NCWC -109,415,000
EBIT 887,416,000
Tax Provision 184,943,000
Depreciation and Amortization 156,048,000
Capital Expenditure -122,505,000
Unlevered Free Cash Flow 571,366,257
Current Assets 8,585,770,000
Current Cash 390,602,000
Current Liabilities 5,301,946,000
Current Debt 23,878,000
Non-Cash Working Capital (NCWC) 2,917,100,000
Change in NCWC 157,337,000
EBIT 793,579,000
Tax Provision 182,343,000
Depreciation and Amortization 131,141,000
Capital Expenditure -116,162,000
Unlevered Free Cash Flow 717,356,948
Current Assets 7,715,301,000
Current Cash 409,684,000
Current Liabilities 4,910,211,000
Current Debt 364,357,000
Non-Cash Working Capital (NCWC) 2,759,763,000
Change in NCWC 57,143,000
EBIT 780,514,000
Tax Provision 203,642,000
Depreciation and Amortization 115,350,000
Capital Expenditure -112,224,000
Unlevered Free Cash Flow 617,029,331

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