Ingram Micro Inc. (IM), Arrow Electronics: Not All PC Hardware Companies Are in Trouble

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Valuations and metrics

Ingram currently trades at 9.82 times TTM earnings and only 8.39 times forward earnings. With a spectacularly low price to sales of 0.08, and a 5 year expected PEG ratio of 0.6, the stock looks very, very cheap compared to the broader market. However, the computer wholesale industry as a whole looks undervalued, with competitors Arrow and Tech Data trading at similar P/E and P/S multiples. The industry has an average P/E of 9.86 and an average price to sales of 0.16. As such, Ingram isn’t that much cheaper than its industry.

Bottom line

It looks as if it isn’t all gloom and doom for computer hardware companies after all. Currently, wholesalers seem to be doing pretty well in terms of earnings, and the industry is trading at a substantial discount to the broader market. Ingram Micro Inc. (NYSE:IM) is doing especially well in terms of top line growth. While it isn’t that much cheaper than the competition at the moment, the company’s solid performance puts it ahead of the pack for now.

The article Not All PC Hardware Companies Are in Trouble originally appeared on Fool.com and is written by Daniel James.

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