PC Connection, Inc. (CNXN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-17.1%

$71.93

vs $86.76 price

Levered DCF

$92.36

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

6.43

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	17.61×	20.93×	21.2×	13.79×	16.15×	22.2×	15.92×	12.29×
P/B	1.62×	2×	2.1×	1.61×	1.66×	1.94×	2.19×	1.51×
P/S	0.51×	0.65×	0.62×	0.39×	0.39×	0.48×	0.46×	0.29×
EV / EBITDA	10.22×	14.92×	13.76×	8.43×	9.49×	13.33×	9.78×	6.83×
Gross margin	18.8%	18.6%	18.0%	16.8%	16.1%	16.2%	16.0%	15.2%
Operating margin	3.6%	3.5%	3.6%	3.9%	3.3%	2.8%	4.0%	3.2%
Net margin	2.9%	3.1%	2.9%	2.9%	2.4%	2.2%	2.9%	2.4%
Current ratio	2.9×	3.14×	3.2×	3.07×	2.49×	2.51×	2.51×	2.58×
Debt / equity	0×	0×	0.01×	0.01×	0.01×	0.02×	0.02×	0×
Interest coverage	0×	0×	0×	0×	0×	673.59×	1,087.11×	590.94×
Dividend yield	1.0%	0.6%	0.5%	0.7%	3.1%	0.7%	0.6%	1.1%
Payout ratio	18.3%	12.1%	10.1%	10.0%	49.5%	15.1%	10.3%	14.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.2%	9.6%	9.9%	11.6%	10.2%	8.8%	13.7%	12.3%
Return on invested capital	8.1%	7.7%	8.8%	11.2%	9.8%	8.0%	12.7%	11.4%
Return on assets	6.2%	6.7%	7.0%	8.1%	6.5%	5.4%	8.7%	8.0%
Free cash flow yield	3.9%	9.1%	10.7%	2.1%	4.2%	2.0%	0.8%	8.3%
Earnings yield	5.7%	4.8%	4.7%	7.2%	6.2%	4.5%	6.3%	8.1%
Enterprise value	$1.3B	$1.6B	$1.6B	$1.1B	$1B	$1.2B	$1.2B	$702.6M
Net debt / EBITDA	-1.53×	-1.58×	-1.18×	-0.87×	-0.9×	-0.95×	-0.6×	-0.89×
Cash conversion cycle (days)	52	47	56	68	65	65	54	48