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ScanSource, Inc (SCSC) Fair Value & Analysis

Technology · US · Market cap $1.1B

SI ScanSource, Inc logo ScanSource, Inc SCSC · US
Price$54.95
Fair Value$69.22
Upside+26.0%
Quality65/100
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Weak Growth
Thin margins · 2.4% net margin
Low debt · generates free cash flow
Mixed vs. peers (7/14)
Narrow moat 34/100
Evidence: High Range $46.70 – $88.01 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 24 days ago

Fair value updated Jul 16, 2026, revised from $68.85 to $69.22 (+0.5%) since Jun 24, 2026. Share price +6.4% over the past month.

A solid business, screening 26% undervalued on our models.

What matters now

  • Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range ($46.70 to $88.01) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$58.89 $25.14 Fair Value $69.22 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $25.14 – $58.89 · fair‑value band $46.70 – $88.01 · the $54.95 price screens below the $69.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

ScanSource, Inc (SCSC) currently trades at $54.95, while our model-based Fair Value estimate is $69.22, implying the stock looks roughly 26.0% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, ScanSource, Inc generated revenue of $3.1B at a net margin of 2.4%. Revenue grew 8.8% year over year. It earns a return on equity of 8.1%. Net debt stands at $20.9M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $46.70 (bear case) to $88.01 (bull case); at $54.95, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 63% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -33% fair-value upside, at 26%, SCSC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $49.88 $73.91 $106.13 80
Residual Income $34.51 $35.74 $37.15 76
Rev-Margin DCF $41.67 $65.27 $93.65 74
All 26 models by family
DCF Models
FCF DCF $49.92 $75.71 $111.74 38
Owner Earnings $44.82 $67.98 $100.34 31
5Y Revenue Exit $41.67 $65.09 $95.07 39
5Y EBITDA Exit $49.55 $80.31 $116.71 41
5Y P/E Exit $48.16 $77.63 $109.19 38
10Y Revenue Exit $43.40 $64.72 $93.81 36
10Y EBITDA Exit $49.07 $74.55 $109.35 37
10Y P/E Exit $48.25 $72.82 $103.95 35
Earnings-Based
Graham-Dodd $23.94 $86.67 $116.88 54
Lynch FV $20.55 $29.36 $38.17 50
PEG = 1.0 $20.55 $29.36 $38.17 46
EPV $24.44 $27.78 $30.57 59
Dividend Discount
Gordon GGM $0.3500 $0.6300 $0.8600 70
DDM Multi-Stage $0.3500 $0.5700 $0.6700 61
Multiples
P/E Multiple $52.80 $70.41 $88.01 63
P/S Multiple $44.88 $59.84 $74.81 58
P/B Multiple $44.88 $59.84 $74.81 55
EV/EBIT $56.49 $75.35 $94.21 53
EV/EBITDA $55.25 $73.70 $92.16 54
EV/Revenue $38.04 $54.39 $70.74 43
Asset-Based
NCAV (Graham) $22.30 $29.88 $44.60 50
Growth DCF
Growth DCF $49.88 $73.91 $106.13 80
Rev-Margin DCF $41.67 $65.27 $93.65 74
Economic Profit
Residual Income $34.51 $35.74 $37.15 76
ROIC Compounder $24.44 $27.78 $30.57 72
Growth Earnings
Growth-Adj P/E $37.80 $54.00 $70.20 68

Widest divergence: DCF Models ($72.82) versus Dividend Discount ($0.5700). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $3.1B
Revenue growth (YoY) +8.8%
Net margin 2.4%
Return on equity 8.1%
Free cash flow $104M FY2025
P/E ratio 16.6
More key figures
Operating margin 3.1%
EPS (TTM) $3.29
EPS growth (YoY) +5.4%
Net debt $20.9M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 63 · Market factors (momentum, volatility) 70

Profitability 47
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 67
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 43
Calm price path (market factor)
Momentum 76
Price trend over the last 3–12 months (market factor)
52W Momentum 90
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

ScanSource, Inc. engages in the distribution of technology products and solutions in the United States and internationally. It operates through two segments: Specialty Technology Solutions, and Intelisys & Advisory.

Full company description

ScanSource, Inc. engages in the distribution of technology products and solutions in the United States and internationally. It operates through two segments: Specialty Technology Solutions, and Intelisys & Advisory. The Specialty Technology Solutions segment offers mobility and barcode, including mobile computing; barcode scanners and imagers, radio frequency identification devices, barcode printing and related services; point of sale systems and integrated pos software platforms; payment terminals, such as self-service kiosks, payment terminals and mobile payment devices; physical security comprising video surveillance and analytics, and video management software and access control; networking, such as switching, and routing and wireless products and software; communications, including voice, video, communication platform integration, and contact center solutions; managed connectivity and wireless enablement solutions. This segment offers applications that have evolved from traditional uses, such as inventory control, materials handling, distribution, shipping and warehouse management, and healthcare applications. The Intelisys & Advisory segment offers connectivity and software-defined networking, cx (unified communications as a service and contact center as a service), cloud/data center, and security, managed AI, and wireless and IOT. This segment helps channel sales partners service various end users, including businesses of all sizes from very small business to enterprise size businesses. It serves manufacturing, warehouse and distribution, retail and e-commerce, hospitality, transportation and logistics, government, education and healthcare, and other industries. ScanSource, Inc. was incorporated in 1992 and is headquartered in Greenville, South Carolina.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ScanSource, Inc reported revenue of $3.0B in FY2025 versus $3.2B in FY2021, a compound −0.9%/yr. Reported net income was $71.5M in FY2025, compounding +60.5%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$3.0B
Latest YoY
−6.7%
Avg. growth/yr (3Y)
−4.9%
Avg. growth/yr (5Y)
+0.0%
Avg. growth/yr (32Y)
+25.0%
Revenue −0.9%/yr
FY21 $3.2B
FY22 $3.5B
FY23 $3.8B
FY24 $3.3B
FY25 $3.0B
Net income +60.5%/yr
FY21 $10.8M
FY22 $88.8M
FY23 $89.8M
FY24 $77.1M
FY25 $71.5M

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Cite: Fair Value Calculator (2026). "ScanSource, Inc Fair Value". https://www.fairvalue-calculator.com/stock/SCSC

Peer Group

Electronics & Computer Distribution · 151 stocks

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.

Quality Score 65 · Top 25%
Fair Value upside +26% · Above median
Return on equity (TTM) 8% · Below median
Return on assets 3% · Above median
Net margin (TTM) 2% · Above median
Operating margin (TTM) 3% · Below median
Revenue growth 9% · Below median
Debt / equity 0.14× · Higher than median

Valuation Multiples vs Electronics & Computer Distribution median · lower = cheaper

P/E (TTM) 16.6× · Cheaper than median
P/B 1.23× · Cheaper than median
P/S (TTM) 0.36× · Pricier than median
P/FCF 10.7× · Pricier than 75% of peers
EV/EBITDA 9.2× · Pricier than median
PEG 0.82× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 68 · sector 14
FUTURE 44 · sector 57
PAST 32 · sector 36
HEALTH 93 · sector 98
DIVIDEND 0 · sector 39

Insider activity: 66/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electronics & Computer Distribution stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
TD SYNNEX Corporation SNX $251.52 $207.02 -18%
Unisplendour Corporation 000938 ¥38.59 ¥11.79 -69%
Rexel S.A RXL €38.59 €33.31 -14%
Arrow Electronics, Inc ARW $204.10 $115.40 -43%
Avnet, Inc AVT $87.13 $58.57 -33%
WPG Holdings 3702 106.50 TWD 102.31 TWD -4%
Shenzhen Huaqiang Industry Co 000062 ¥22.37 ¥7.52 -66%
Synnex Technology International Corporation 2347 85.30 TWD 86.30 TWD +1%
Nanjing Sunlord Electronics Corporation 300975 ¥37.37 ¥8.60 -77%
Beijing Tricolor Technology Co 603516 ¥106.52 ¥23.39 -78%

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Frequently asked questions

Is ScanSource, Inc (SCSC) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $69.22 versus a price of $54.95, about +26% (undervalued).
What is the fair value of SCSC?
Our model-based fair value for ScanSource, Inc is $69.22 (as of Jul 16, 2026), built from audited fundamentals. The current price is $54.95.
What is the quality score of SCSC?
ScanSource, Inc has a Quality Score of 65/100. 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 revenue of ScanSource, Inc (SCSC)?
ScanSource, Inc reported trailing-twelve-month revenue of about $3.1B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of SCSC?
The net profit margin of ScanSource, Inc is about 2.4%, meaning it keeps roughly 2.4% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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