Latest Ratios: P/E Ratio 24.5x · EV/EBITDA 14.2x · ROE 3.3%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.1B | $7.2B | $4.6B | $4.7B | $4.7B | $4.2B | $4.0B | $2.6B | $5.0B | $5.1B | $5.0B |
| Enterprise Value | $11.4B | $10.5B | $7.3B | $7.6B | $7.7B | $5.9B | $5.3B | $3.9B | $6.2B | $6.2B | $5.9B |
| P/E Ratio → | 24.50 | 21.54 | 19.30 | 9.48 | 6.11 | 6.09 | 20.74 | — | 28.47 | — | 9.53 |
| P/S Ratio | 0.29 | 0.26 | 0.21 | 0.20 | 0.18 | 0.17 | 0.21 | 0.15 | 0.26 | 0.27 | 0.29 |
| P/B Ratio | 0.53 | 0.47 | 0.93 | 0.96 | 0.99 | 1.01 | 0.98 | 0.70 | 1.21 | 1.10 | 0.97 |
| P/FCF | — | — | 8.04 | 10.20 | — | — | 98.80 | 3.98 | 12.17 | 52.69 | — |
| P/OCF | — | — | 6.40 | 6.85 | — | — | 44.09 | 3.58 | 9.38 | 20.29 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.38 | 0.33 | 0.32 | 0.29 | 0.24 | 0.27 | 0.22 | 0.32 | 0.32 | 0.34 |
| EV / EBITDA | 14.20 | 13.13 | 9.80 | 7.72 | 5.81 | 5.42 | 11.32 | 16.25 | 11.32 | 13.91 | 9.92 |
| EV / EBIT | 15.70 | 14.66 | 14.62 | 8.30 | 6.26 | 6.35 | 20.28 | — | 16.66 | 25.97 | 14.50 |
| EV / FCF | — | — | 12.69 | 16.39 | — | — | 131.14 | 5.90 | 15.02 | 63.27 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 10.4% | 10.4% | 10.7% | 11.6% | 12.0% | 12.2% | 11.5% | 11.7% | 12.7% | 13.3% | 13.6% |
| Operating Margin | 2.6% | 2.6% | 2.8% | 3.6% | 4.5% | 3.9% | 1.4% | -0.0% | 1.9% | 1.1% | 2.5% |
| Net Profit Margin | 1.2% | 1.2% | 1.1% | 2.1% | 2.9% | 2.8% | 1.0% | -0.2% | 0.9% | -0.8% | 3.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.3% | 3.3% | 4.8% | 10.3% | 17.2% | 16.7% | 4.9% | -0.8% | 4.0% | -3.2% | 10.6% |
| ROA | 2.4% | 2.4% | 2.0% | 4.0% | 6.7% | 7.2% | 2.3% | -0.4% | 1.9% | -1.6% | 5.0% |
| ROIC | 4.1% | 4.1% | 6.0% | 8.1% | 13.0% | 12.5% | 4.1% | -0.1% | 5.0% | 2.6% | 5.4% |
| ROCE | 9.1% | 9.1% | 7.9% | 10.6% | 16.5% | 15.6% | 4.8% | -0.1% | 5.8% | 3.0% | 6.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.23 | 0.23 | 0.57 | 0.65 | 0.69 | 0.44 | 0.37 | 0.46 | 0.42 | 0.35 | 0.34 |
| Debt / EBITDA | 4.34 | 4.34 | 3.85 | 3.23 | 2.48 | 1.71 | 3.22 | 7.27 | 3.15 | 3.73 | 2.97 |
| Net Debt / Equity | — | 0.22 | 0.54 | 0.58 | 0.63 | 0.41 | 0.32 | 0.34 | 0.28 | 0.22 | 0.18 |
| Net Debt / EBITDA | 4.14 | 4.14 | 3.59 | 2.91 | 2.27 | 1.56 | 2.79 | 5.27 | 2.15 | 2.33 | 1.57 |
| Debt / FCF | — | — | 4.65 | 6.19 | — | — | 32.35 | 1.91 | 2.85 | 10.59 | — |
| Interest Coverage | 2.86 | 2.86 | 2.00 | 3.24 | 4.92 | 9.30 | 2.93 | -0.06 | 2.75 | 2.56 | 4.12 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.78 | 1.78 | 2.43 | 2.32 | 2.53 | 2.09 | 2.34 | 2.78 | 2.67 | 2.56 | 3.07 |
| Quick Ratio | 0.97 | 0.97 | 1.16 | 1.10 | 1.24 | 1.09 | 1.29 | 1.58 | 1.50 | 1.50 | 1.92 |
| Cash Ratio | 0.02 | 0.02 | 0.05 | 0.07 | 0.07 | 0.04 | 0.07 | 0.21 | 0.21 | 0.21 | 0.46 |
| Asset Turnover | — | 1.79 | 1.83 | 1.95 | 2.13 | 2.34 | 2.19 | 2.16 | 2.28 | 1.98 | 1.80 |
| Inventory Turnover | 4.08 | 4.08 | 3.78 | 3.84 | 4.27 | 5.03 | 5.34 | 5.70 | 5.66 | 5.25 | 5.34 |
| Days Sales Outstanding | — | 90.92 | 71.15 | 67.47 | 65.52 | 64.58 | 66.82 | 60.61 | 59.25 | 69.81 | 69.85 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.4% | 1.6% | 2.4% | 2.4% | 2.3% | 2.3% | 2.1% | 3.2% | 1.7% | 1.7% | 1.8% |
| Payout Ratio | 34.2% | 34.2% | 47.2% | 22.5% | 13.8% | 14.2% | 43.7% | — | 49.4% | — | 16.9% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 4.6% | 5.2% | 10.5% | 16.4% | 16.4% | 4.8% | — | 3.5% | — | 10.5% |
| FCF Yield | — | — | 12.4% | 9.8% | — | — | 1.0% | 25.1% | 8.2% | 1.9% | — |
| Buyback Yield | 1.7% | 1.9% | 6.5% | 3.4% | 4.7% | 4.4% | 0.0% | 9.1% | 11.3% | 6.3% | 5.5% |
| Total Shareholder Yield | 3.1% | 3.5% | 9.0% | 5.8% | 7.0% | 6.7% | 2.1% | 12.3% | 13.1% | 8.0% | 7.3% |
| Shares Outstanding | — | $83M | $87M | $92M | $93M | $100M | $100M | $100M | $111M | $120M | $129M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AVT stock.
Avnet, Inc.'s current P/E ratio is 24.5x. The historical average is 20.4x. This places it at the 88th percentile of its historical range.
Avnet, Inc.'s current EV/EBITDA is 14.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.0x.
Avnet, Inc.'s return on equity (ROE) is 3.3%. The historical average is 6.2%.
Based on historical data, Avnet, Inc. is trading at a P/E of 24.5x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Avnet, Inc.'s current dividend yield is 1.40% with a payout ratio of 34.2%.
Avnet, Inc. has 10.4% gross margin and 2.6% operating margin.
Avnet, Inc.'s Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Thin margins and working capital swings
Metrics are mathematically derived from official filings.
Cyclical Rebound Priced at Premium
Avnet trades at 23.94x trailing earnings versus Arrow's 19.14x, yet forward P/E of 18.61x implies market expects earnings growth to persist, per reported multiples.
The trailing P/E of 23.94x is elevated relative to Arrow's 19.14x, but the forward P/E of 18.61x suggests the market is pricing in continued earnings recovery. With a PEG of 1.52, the stock appears reasonably valued if growth sustains, but the low P/B of 0.52 highlights the asset-heavy, low-return nature of the distribution model. Investors should monitor whether the cyclical upswing justifies the premium over peers.
Margins Stabilize Near Cyclical Lows
Gross margin held at 10.4% in Q4 FY2026, down from 11.8% two years earlier, while net margin improved to 1.5% from 0.1%, as per financial statements.
Gross margin compression from 11.8% to 10.4% over two years reflects structural pricing pressure in distribution, but operating margin of 2.2% in Q4 FY2026 shows slight sequential improvement from 2.5% in Q3. Net margin of 1.5% remains razor-thin, leaving earnings highly sensitive to any demand or cost shock. The stability in gross margin despite revenue surge suggests disciplined cost management, but the low absolute level underscores the lack of pricing power.
Returns Remain Subdued Despite Recovery
ROIC improved to 1.7% in Q4 FY2026 from 1.4% a year earlier, but remains far below the cost of capital, as reported in quarterly data.
ROIC of 1.7% is marginally better than the 1.4% seen in Q4 FY2025, but it remains below the company's weighted average cost of capital, indicating value destruction on a risk-adjusted basis. ROE of 2.5% is similarly low, reflecting the thin margins and high asset base typical of distribution. The improvement is driven by higher asset turnover (0.57x) as revenue accelerates, but returns are unlikely to reach double digits without a structural margin expansion.
Working Capital Cycle Compresses Sharply
Cash conversion cycle fell to 73 days in Q4 FY2026 from 119 days two years earlier, driven by faster inventory turnover, as per reported figures.
The CCC improvement from 119 days to 73 days is a positive sign, with DIO dropping from 108 to 71 days, indicating better inventory management during the demand surge. DSO remained stable at 68 days, while DPO rose slightly to 65 days, suggesting Avnet is extending supplier payments. However, the negative FCF margin of -3.7% in Q4 FY2026 shows that working capital investment is still consuming cash, and the efficiency gains may reverse if demand softens.
Debt Burden Grows as Coverage Thins
Debt-to-equity rose to 0.69 from 0.57 a year ago, while interest coverage improved to 3.45x from 1.13x, based on reported balance sheet data.
The increase in D/E to 0.69 reflects higher borrowings to fund working capital, but interest coverage of 3.45x is the strongest in ten quarters, indicating improved earnings before interest and taxes relative to interest expense. However, D/EBITDA of 21.44x is elevated, suggesting that EBITDA is low relative to debt, which could strain refinancing if earnings decline. The company's reliance on debt for growth warrants monitoring, especially if the cycle turns.
Liquidity Buffer Narrows Rapidly
Current ratio fell to 1.78 in Q4 FY2026 from 2.43 a year earlier, with cash at $155M against $22B revenue, as per the latest balance sheet.
The current ratio decline from 2.43 to 1.78 indicates a tighter liquidity position, though still above 1.0, suggesting adequate short-term coverage. Quick ratio of 0.97 shows that excluding inventory, current assets barely cover current liabilities, highlighting inventory dependence. With cash of only $155M, Avnet relies heavily on credit lines, and any disruption in credit markets could pressure operations, especially given the negative FCF in the quarter.
Trading at Discount to Peers on P/B
Avnet's P/B of 0.52 is far below Arrow's 1.64 and TD Synnex's 2.48, while its ROE of 2.5% lags the group, per reported data.
Avnet's P/B discount suggests the market assigns lower value to its asset base, likely due to persistently low returns on equity compared to peers (Arrow 12.0%, TD Synnex 13.1%). Its net margin of 1.5% is in line with TD Synnex but below Arrow's 1.9%, indicating similar profitability challenges. The valuation gap may reflect Avnet's higher leverage and thinner margins, but if the cyclical recovery continues, the discount could narrow.
P/E Misleads in Cyclical Downturn
Trailing P/E of 23.94x appears expensive, but forward P/E of 18.61x and low P/B of 0.52 suggest the market is pricing a cyclical peak, not trough earnings.
The most commonly misapplied ratio for Avnet is the trailing P/E, which is distorted by the cyclical trough in earnings. In a downturn, earnings collapse, inflating the P/E, while in a recovery, earnings surge, making the P/E look cheap. Investors should instead use EV/EBITDA or P/B, which better capture the asset-heavy, low-margin nature of distribution. The forward P/E of 18.61x already reflects expected earnings growth, so relying on trailing P/E alone could lead to misjudging the stock's value.