What is PC Connection Inc worth?
With the base-case assumptions below, a discounted cash flow model on PC Connection Inc's reported free cash flow gives $39.77 per share. The share price was $89.32 on September 25, 2026, 125% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -3.0% | 10.0% | $26.55 | -70% |
| Base | 2.0% | 9.0% | $39.77 | -55% |
| Bull | 7.0% | 8.0% | $64.46 | -28% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $49.05 | $51.84 | $55.26 | $59.54 | $65.03 |
| 8.0% | $42.15 | $43.97 | $46.11 | $48.68 | $51.83 |
| 9.0% | $37.10 | $38.34 | $39.77 | $41.44 | $43.42 |
| 10.0% | $33.24 | $34.12 | $35.12 | $36.27 | $37.58 |
| 11.0% | $30.20 | $30.85 | $31.57 | $32.38 | $33.30 |
Where the presets come from
Base: years 1 to 5 grow at PC Connection Inc's revenue growth rate over the last 5 fiscal years (2.1% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions