PC Connection Inc (CNXN) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of PC Connection Inc stock $63.39, price $79.15, that is 19.9% below the price, quality 64 out of 100. Rating: overvalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $37.50 – $95.22 · fair‑value band $42.80 – $88.89 · the $79.15 price screens above the $63.39 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 4, 2026.
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PC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions worldwide. It operates in three segments: Connection Enterprise Solutions, Connection Business Solutions, and Connection Public Sector Solutions.
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The company offers IT solutions, including computer systems, data center solutions, and artificial intelligence; a portfolio of managed services and professional services; services related to the design, configuration, and implementation of IT solutions; and cybersecurity, digital workspace, modern infrastructure, multicloud, and supply chain and lifecycle solutions and services.
It also distributes accessories, cable and adapters, computer parts, computers, conferencing and AV products, electronics, media and supplies, monitors and projectors, networking products, office equipment, power products, printers and supplies, servers and accessories, software, and storage products; hardware, including devices and peripherals; notebooks/mobility products, desktops, communication products, displays, and sound products; and cloud solutions.
The company markets its products and services through its websites.
It serves large enterprise customers; small to medium-sized businesses, including small office/home office customers; healthcare, manufacturing, and retail industries; federal, state, and local government; educational institutions, including K-12 and higher education; medium-to-large corporations through outbound inside and field sales, digital and web advertising, and targeted marketing programs to specific market segments.
PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.
Stock analysis
PC Connection Inc (CNXN) currently trades at $79.15, while our model-based Fair Value estimate is $63.39, 20% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $75.12 per share, and 4 of the 25 models we run sit above the $79.15 price.
Bear case: the Dividend Discount group reads lowest at $8.39, and 21 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $42.80 (bear) to $88.89 (bull), the price of $79.15 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Technology sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
PC Connection Inc reported revenue of $2.9B in FY2025 versus $2.9B in FY2021, a compound −0.2%/yr. Reported net income was $83.7M in FY2025, compounding +4.6%/yr from FY2021.
Key figures
Market cap $2.0B Mid · P/E ratio 19.5 · P/S ratio 0.64 · EPS (TTM) $4.05 · Dividend yield 0.9% · Net margin 3.3% · Return on equity 10.9% · Return on assets (EBIT) 8.7% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 39 out of 100 (low confidence).
What moves the price
The share trades about 17% below its 52-week high and 43% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −8% fair-value upside, at −20%, CNXN screens richer than that median.
Fair Value models
Bear$42.80Fair Value $63.39Bull$88.89
Price $79.15 · Downside -19.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($2.82 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 5 officers or directors sold shares worth $13.6M and none bought.
SalePatricia GallupChairman & Chief Admin Officer, Director, 10% owner6× since Jun 8, 2026: 85,728 shares, avg. $82.11$7.0MNov 4, 202610b5-1 plan
SaleDavid Hall Trust 200310% owner3× since Aug 17, 2026: 42,852 shares, avg. $81.23$3.5MSep 15, 202610b5-1 plan
SaleNegrini David BeffaDirector5,000 shares at $81.05$405,250Aug 14, 2026
SalePC CONNECTION INC10% owner2× since Jun 23, 2026: 28,568 shares, avg. $77.66$2.2MAug 5, 202610b5-1 plan
SaleTimothy J McGrathPresident & CEO50,000 shares at $85.88$4.3MAug 4, 2026
SaleThomas C BakerSr. VP, CFO & Treasurer20,000 shares at $83.19$1.7MJul 31, 2026
SaleBarbara DuckettDirector2,000 shares at $83.86$167,720Jul 31, 2026
Plus 7 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+2.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−2.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.1%
Start year 2020 (pandemic). Over 10 years: +1.1% a year
Revenue growth 28 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.1%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+6.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+5.5%
Dividend (yield on the price)0.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.4.5% vs 6.5%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.3% → 4%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+14.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
Calculated on free cash flow for fiscal year 2025. Over the last twelve months it was negative, so the figure above is uncertain.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +11.6% a year for the price.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Electronics & Computer Distribution · 150 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score64 · Top 25%
Fair Value upside−19.9% · Below median
Profitability
Return on equity (12 months)10.9% · Above median
Return on assets6.2% · Top 25%
Net margin (12 months)3.3% · Above median
Operating margin (12 months)4.7% · Above median
Growth and dividend
Revenue growth (quarter YoY)23.3% · Above median
Dividend yield (12 months)0.9% · Bottom 25%
Valuation Multiplesvs Electronics & Computer Distribution median · lower = cheaper
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Is PC Connection Inc (CNXN) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $63.39 versus a price of $79.15, about 20% lower (overvalued).
What is the fair value of CNXN?
Our model-based fair value for PC Connection Inc is $63.39 (as of Nov 4, 2026), built from audited fundamentals. The current price: $79.15.
What is the quality score of CNXN?
PC Connection Inc has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for PC Connection Inc (CNXN)?
Our model-based price target is the fair value of $63.39 (as of Nov 4, 2026) from 25 valuation models. Cautious scenario $42.80, optimistic scenario $88.89. It is a calculation from audited fundamentals, not an analyst target.
What is the PC Connection Inc stock forecast for 2026?
Our models put fair value at $63.39, about 20% lower versus a price of $79.15 (overvalued). Cautious scenario $42.80, optimistic scenario $88.89. The calculation is refreshed regularly with new filings.
What is the revenue of PC Connection Inc (CNXN)?
PC Connection Inc reported trailing-twelve-month revenue of about $3.2B (latest available figure, as of Nov 4, 2026).
Does PC Connection Inc pay a dividend?
PC Connection Inc currently shows a dividend yield of 0.95% relative to its recent price (as of Nov 4, 2026).
How much is the dividend of PC Connection Inc (CNXN) and when is the ex-dividend date?
PC Connection Inc pays a dividend of $0.75 per share a year, a dividend yield of 0.9%. The next ex-dividend date is Nov 10, 2026. A dividend has been paid every year since 2021. The payout ratio is 18.5% of earnings. Free cash flow covers the dividend 3.07 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into PC Connection Inc (CNXN)?
For today's price to be fair in a discounted-cash-flow model, PC Connection Inc would have to grow free cash flow by +14.3 % per year for five years (discount rate 9.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +2.1 % per year. Calculated on free cash flow for fiscal year 2025. Over the last twelve months it was negative, so the figure above is uncertain. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of CNXN use?
Our models discount PC Connection Inc at 9.3 %: a base by market capitalisation (mid), damped by beta 0.82, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For PC Connection Inc that is +14.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.3 %) and the same formula as our fair value.
How much growth has PC Connection Inc (CNXN) delivered so far?
Over the past 5 years revenue at PC Connection Inc grew +2.1 % a year. The price currently implies free-cash-flow growth of +14.3 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of PC Connection Inc (CNXN) growing?
The median revenue growth in the sector is +11.5 % a year. That is the yardstick for the growth priced into PC Connection Inc (+14.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of PC Connection Inc (CNXN)?
The free-cash-flow yield on the price is 2.89 % in the last fiscal year (free cash flow was negative over the last twelve months): that much free cash flow PC Connection Inc produces per unit of market value. When it exceeds the discount rate of our models (9.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of PC Connection Inc (CNXN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For PC Connection Inc it is $63.39 per share (as of Nov 4, 2026), against a price of $79.15. It is the blended result of 25 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is PC Connection Inc stock overvalued or undervalued in 2026?
As of Nov 4, 2026, CNXN trades above its calculated fair value: price $79.15, fair value $63.39, a gap of about −20% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CNXN?
No. The price is what the market pays today ($79.15); the fair value is what the company's own numbers justify ($63.39). For PC Connection Inc the two are $15.76 per share apart. That gap is exactly why we show both numbers side by side.
How much is PC Connection Inc worth?
The market values PC Connection Inc at about $2.0B (market capitalisation, as of Nov 4, 2026). Per share that is $79.15; our models calculate a fair value of $63.39 per share.
What do the bullish and bearish scenarios say about CNXN?
Our models span a range for PC Connection Inc: cautious scenario $42.80, base $63.39, optimistic $88.89 per share (as of Nov 4, 2026, price $79.15). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of CNXN?
PC Connection Inc trades at a price-to-earnings ratio of 19.5 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $63.39 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2023, FY2025 ex one-offs: 16.2. Other multiples: PEG 1.9, P/B 2.2, P/S 0.6, EV/EBITDA 12.5.
What is the PEG ratio of CNXN?
The PEG ratio of PC Connection Inc is 1.89 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of PC Connection Inc (CNXN)?
Balance-sheet figures for PC Connection Inc (as of Nov 4, 2026): return on equity 10.9%. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is CNXN from its 52-week high?
PC Connection Inc trades at $79.15, about 17% below its 52-week high of $95.22 and 43% above the low of $55.35 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $63.39 is for.
Which stocks are comparable to PC Connection Inc?
From the same area (Technology) we also value TD SYNNEX Corporation, Rexel S.A, Unisplendour Corporation, Arrow Electronics, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is PC Connection Inc stock attractive at the current price?
The data as of Nov 4, 2026: price $79.15, calculated fair value $63.39 (−20%), Quality Score 64/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CNXN calculated?
We run PC Connection Inc through 25 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $63.39 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. PC Connection Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of PC Connection Inc (CNXN)?
The closing price on Nov 6, 2026 was $79.15. Our model-based fair value is $63.39, about 20% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with PC Connection Inc right now?
Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($42.80 to $88.89) leaves room in how you read the outcome.
Where does the earnings growth of PC Connection Inc (CNXN) come from?
Earnings per share at PC Connection Inc grew +7.3 % a year from 2014 to 2025. Broken into its drivers: revenue per share +1.3 %, EBIT margin +2.0 %, tax rate +2.4 %, residual (interest, one-offs) +1.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of PC Connection Inc
How large is the market capitalisation of PC Connection Inc (CNXN)?
The market capitalisation of PC Connection Inc is $2.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of PC Connection Inc (CNXN)?
The price-to-sales ratio of PC Connection Inc is 0.64 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of PC Connection Inc (CNXN)?
Earnings per share at PC Connection Inc are $4.05 (price ÷ EPS = P/E 19.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of PC Connection Inc (CNXN)?
The dividend yield of PC Connection Inc is 0.9% (payout 18.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of PC Connection Inc (CNXN)?
The net margin of PC Connection Inc is 3.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of PC Connection Inc (CNXN)?
The return on equity (ROE) of PC Connection Inc is 10.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of PC Connection Inc (CNXN)?
On an EBIT basis the return on assets of PC Connection Inc is 8.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of PC Connection Inc (CNXN)?
The operating margin of PC Connection Inc is 4.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at PC Connection Inc (CNXN)?
Revenue at PC Connection Inc is growing +23.3% versus a year earlier (3y avg −2.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at PC Connection Inc (CNXN)?
Earnings per share at PC Connection Inc are growing +27.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does PC Connection Inc (CNXN) hold?
PC Connection Inc holds more cash than debt, $192M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 4, 2026