CNXN
PC Connection, Inc. (CNXN)
Last Price$62.9(0.8%)
Market Cap$1,663.7M
DCF value
$136.6
Undervalued (DCF value)
117.3%
Discount Rate
7.5%
Long-Term Growth Rate
4.0%
Stock quality
6/10
Good

CNXN DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
2,590.3
(8.1%)
2,892.6
11.7%
3,125.0
8.0%
2,850.6
(8.8%)
2,802.1
(1.7%)
2,958.1
5.6%
3,122.8
5.6%
3,291.2
5.4%
3,463.0
5.2%
3,637.7
5.0%
3,814.9
4.9%
3,994.1
4.7%
4,174.7
4.5%
4,356.2
4.3%
4,538.1
4.2%
4,719.6
4.0%
72.1
2.8%
96.5
3.3%
120.6
3.9%
105.8
3.7%
97.1
3.5%
101.7
3.4%
107.3
3.4%
113.1
3.4%
119.0
3.4%
125.0
3.4%
131.1
3.4%
137.3
3.4%
143.5
3.4%
149.7
3.4%
156.0
3.4%
162.2
3.4%
NOPAT
% effective tax rate
54.9
2.1%
69.9
2.4%
88.4
2.8%
77.9
2.7%
72.0
2.6%
75.4
2.5%
79.6
2.5%
83.8
2.5%
88.2
2.5%
92.7
2.5%
97.2
2.5%
101.8
2.5%
106.4
2.5%
111.0
2.5%
115.6
2.5%
120.2
2.5%
% of revenue
13.6
0.5%
12.2
0.4%
12.0
0.4%
12.7
0.4%
0.0
0.0%
8.2
0.3%
8.6
0.3%
9.1
0.3%
9.5
0.3%
10.0
0.3%
10.5
0.3%
11.0
0.3%
11.5
0.3%
12.0
0.3%
12.5
0.3%
13.0
0.3%
% of revenue
(11.0)
(0.4%)
(10.3)
(0.4%)
(9.1)
(0.3%)
(9.6)
(0.3%)
0.0
0.0%
(6.2)
(0.2%)
(6.5)
(0.2%)
(6.9)
(0.2%)
(7.2)
(0.2%)
(7.6)
(0.2%)
(8.0)
(0.2%)
(8.3)
(0.2%)
(8.7)
(0.2%)
(9.1)
(0.2%)
(9.5)
(0.2%)
(9.9)
(0.2%)
(36.6)
(1.4%)
(32.6)
(1.1%)
(73.9)
(2.4%)
96.3
3.4%
68.4
2.4%
34.0
1.1%
35.9
1.1%
37.8
1.1%
39.8
1.1%
41.8
1.1%
43.9
1.1%
45.9
1.1%
48.0
1.1%
50.1
1.1%
52.2
1.1%
54.3
1.1%
Free Cash Flow to Firm (FCFF)
% of revenue
20.9
0.8%
39.2
1.4%
17.4
0.6%
177.2
6.2%
140.3
5.0%
111.3
3.8%
117.5
3.8%
123.9
3.8%
130.4
3.8%
136.9
3.8%
143.6
3.8%
150.3
3.8%
157.1
3.8%
164.0
3.8%
170.8
3.8%
177.7
3.8%
% of FCFF used in calculation
80.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.90
0.83
0.78
0.72
0.67
0.63
0.58
0.54
0.50
Discounted FCFF (DFCFF)
86.8
105.5
103.4
101.3
99.0
96.5
94.0
91.5
88.8
86.0

Best stock ideas on the market right now

With Value Sense, you can find undervalued stocks list with intrinsic value. Discover more stock market investment ideas.

CNXN DCF Value

DCF Value Calculation

as of Mar 11, 2025
Sum of DFCFF
% share of EV
952.8M
30.0%
Terminal Value (TV)
4,413.5M
Discounted TV
% share of EV
2,223.2M
70.0%
Total Debt
3,357.0K
3,615.3M
Shares outstanding
26.5M
FX rate
1.0
117.3% undervalued

Equity Value Bridge

CNXN DCF Financials

Revenue
$2,802.1M -> $4,538.1M 4.9% CAGR
Operating Income
$97.1M -> $156.0M 4.9% CAGR
FCFF
$140.3M -> $170.8M 2.0% CAGR

CNXN DCF sensitivity

DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
6.0%
$145.0
$145.0
$145.0
$145.0
$145.0
6.5%
$142.0
$142.0
$142.0
$142.0
$142.0
7.5%
$128.0
$137.0
$137.0
$137.0
$137.0
7.5%
$128.0
$137.0
$137.0
$137.0
$137.0
8.0%
$116.0
$124.0
$133.0
$134.0
$134.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
6.0%
131.0%
131.0%
131.0%
131.0%
131.0%
6.5%
126.0%
126.0%
126.0%
126.0%
126.0%
7.5%
104.0%
118.0%
118.0%
118.0%
118.0%
7.5%
104.0%
118.0%
118.0%
118.0%
118.0%
8.0%
84.0%
97.0%
112.0%
113.0%
113.0%

Explore more intrinsic value tools hub for CNXN

FAQ

What is PC Connection, Inc. DCF (discounted cash flow) valuation?

As of Mar 11, 2025, PC Connection, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $136.6. This suggests it may be undervalued by 117.3% compared to its current price of around $62.9, using a WACC of 7.5% and growth rates of 4.0%.

What is PC Connection, Inc. WACC?

As of Mar 11, 2025, PC Connection, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 7.5%.

What is PC Connection, Inc. Enterprise Value?

As of Mar 11, 2025, PC Connection, Inc.'s Enterprise Value (EV) is approximately $3,176.0M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.