ScanSource, Inc. (SCSC) 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

-32.2%

$38.33

vs $56.50 price

Levered DCF

$211.27

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.68

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

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

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	14.12×	13.71×	14.01×	8.45×	8.95×	15.72×	-7.72×	14.56×
P/B	1.22×	1.08×	1.17×	0.82×	0.98×	0.98×	0.9×	0.92×
P/S	0.35×	0.32×	0.33×	0.2×	0.22×	0.23×	0.2×	0.22×
EV / EBITDA	10.3×	7.55×	7.44×	6.17×	6.74×	7.79×	8.37×	7.71×
Gross margin	13.6%	13.4%	12.2%	11.9%	12.1%	11.1%	11.7%	11.7%
Operating margin	3.1%	2.8%	2.8%	3.6%	3.5%	2.0%	-2.1%	2.3%
Net margin	2.4%	2.4%	2.4%	2.4%	2.5%	0.3%	-6.3%	1.5%
Current ratio	1.76×	2.01×	2.1×	2.11×	1.87×	1.66×	1.67×	2.11×
Debt / equity	0.12×	0.16×	0.17×	0.38×	0.36×	0.22×	0.36×	0.39×
Interest coverage	14.96×	10.63×	6.93×	6.87×	18.73×	8.87×	-5.31×	6.84×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	8.7%	7.9%	8.3%	9.9%	11.0%	1.5%	-28.4%	6.3%
Return on invested capital	6.9%	5.8%	6.2%	7.6%	8.0%	5.1%	-6.6%	5.0%
Return on assets	4.1%	4.0%	4.3%	4.3%	4.6%	0.6%	-11.4%	2.8%
Free cash flow yield	10.2%	10.6%	33.6%	-6.2%	-16.5%	19.4%	36.0%	-4.1%
Earnings yield	7.1%	7.3%	7.1%	12.1%	11.2%	1.5%	-31.5%	6.9%
Enterprise value	$1.1B	$1B	$1B	$1.1B	$1B	$816.4M	$825.8M	$1.2B
Net debt / EBITDA	0.2×	0.16×	-0.22×	1.81×	1.62×	0.97×	2.17×	2.21×
Cash conversion cycle (days)	67	72	55	88	72	54	61	77