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 $39.81 per share. The share price was $82.10 on November 10, 2026, 106% 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% | $26.58 | -68% |
| Base | 2.0% | 9.0% | $39.81 | -52% |
| Bull | 7.0% | 8.0% | $64.49 | -21% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $49.08 | $51.88 | $55.30 | $59.57 | $65.07 |
| 8.0% | $42.19 | $44.00 | $46.14 | $48.72 | $51.86 |
| 9.0% | $37.13 | $38.37 | $39.81 | $41.48 | $43.45 |
| 10.0% | $33.28 | $34.16 | $35.16 | $36.30 | $37.62 |
| 11.0% | $30.23 | $30.88 | $31.60 | $32.42 | $33.34 |
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