SCSC
ScanSource, Inc. (SCSC)
Last Price$36.1(0.4%)
Market Cap$866.8M
DCF value
$23.8
Overvalued (DCF value)
(34.0%)
Discount Rate
10.9%
Long-Term Growth Rate
4.0%
Stock quality
6/10
Good

SCSC DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Jun'20 ActualJun'21 ActualJun'22 ActualJun'23 ActualJun'24 ActualJun'25 EstimateJun'26 EstimateJun'27 EstimateJun'28 EstimateJun'29 EstimateJun'30 EstimateJun'31 EstimateJun'32 EstimateJun'33 EstimateJun'34 EstimateJun'35 Terminal
% growth
3,047.7
(21.3%)
3,150.8
3.4%
3,529.9
12.0%
3,787.7
7.3%
3,259.8
(13.9%)
3,194.3
(2.0%)
3,415.4
6.9%
3,640.7
6.6%
3,869.1
6.3%
4,099.2
5.9%
4,329.7
5.6%
4,559.1
5.3%
4,785.9
5.0%
5,008.4
4.6%
5,225.0
4.3%
5,434.0
4.0%
67.9
2.2%
61.5
2.0%
122.2
3.5%
135.9
3.6%
94.7
2.9%
69.2
2.2%
74.0
2.2%
78.9
2.2%
83.9
2.2%
88.9
2.2%
93.9
2.2%
98.8
2.2%
103.8
2.2%
108.6
2.2%
113.3
2.2%
117.8
2.2%
NOPAT
% effective tax rate
74.9
2.5%
48.5
1.5%
91.3
2.6%
98.2
2.6%
73.1
2.2%
53.4
1.7%
57.1
1.7%
60.9
1.7%
64.7
1.7%
68.6
1.7%
72.4
1.7%
76.3
1.7%
80.1
1.7%
83.8
1.7%
87.4
1.7%
90.9
1.7%
% of revenue
35.3
1.2%
33.5
1.1%
29.9
0.8%
28.7
0.8%
28.0
0.9%
26.2
0.8%
28.1
0.8%
29.9
0.8%
31.8
0.8%
33.7
0.8%
35.6
0.8%
37.5
0.8%
39.3
0.8%
41.1
0.8%
42.9
0.8%
44.6
0.8%
% of revenue
(6.4)
(0.2%)
(2.4)
(0.1%)
(6.8)
(0.2%)
(10.0)
(0.3%)
(8.6)
(0.3%)
(7.7)
(0.2%)
(8.2)
(0.2%)
(8.7)
(0.2%)
(9.3)
(0.2%)
(9.8)
(0.2%)
(10.4)
(0.2%)
(10.9)
(0.2%)
(11.5)
(0.2%)
(12.0)
(0.2%)
(12.5)
(0.2%)
(13.0)
(0.2%)
106.2
3.5%
31.0
1.0%
(262.3)
(7.4%)
(165.6)
(4.4%)
264.9
8.1%
(39.2)
(1.2%)
(41.9)
(1.2%)
(44.6)
(1.2%)
(47.4)
(1.2%)
(50.3)
(1.2%)
(53.1)
(1.2%)
(55.9)
(1.2%)
(58.7)
(1.2%)
(61.4)
(1.2%)
(64.1)
(1.2%)
(66.6)
(1.2%)
Free Cash Flow to Firm (FCFF)
% of revenue
210.0
6.9%
110.6
3.5%
(147.9)
(4.2%)
(48.7)
(1.3%)
357.4
11.0%
32.9
1.0%
35.1
1.0%
37.5
1.0%
39.8
1.0%
42.2
1.0%
44.5
1.0%
46.9
1.0%
49.2
1.0%
51.5
1.0%
53.8
1.0%
55.9
1.0%
% of FCFF used in calculation
30.4%
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
0.95
0.86
0.77
0.70
0.63
0.57
0.51
0.46
0.42
0.37
Discounted FCFF (DFCFF)
9.5
30.1
28.9
27.7
26.5
25.2
24.0
22.7
21.4
20.2

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SCSC DCF Value

DCF Value Calculation

as of Mar 11, 2025
Sum of DFCFF
% share of EV
236.2M
43.7%
Terminal Value (TV)
812.8M
Discounted TV
% share of EV
304.8M
56.3%
Total Debt
154.0M
Shares outstanding
24.0M
FX rate
1.0
34% overvalued

Equity Value Bridge

SCSC DCF Financials

Revenue
$3,259.8M -> $5,225.0M 4.8% CAGR
Operating Income
$94.7M -> $113.3M 1.8% CAGR
FCFF
$357.4M -> $53.8M (17.3%) CAGR

SCSC DCF sensitivity

DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
10.0%
$25.0
$26.0
$27.0
$29.0
$30.0
10.5%
$23.0
$24.0
$25.0
$26.0
$28.0
10.9%
$22.0
$23.0
$24.0
$25.0
$26.0
11.5%
$21.0
$21.0
$22.0
$23.0
$24.0
12.0%
$19.0
$20.0
$21.0
$21.0
$22.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
10.0%
(31.0%)
(28.0%)
(25.0%)
(20.0%)
(17.0%)
10.5%
(36.0%)
(33.0%)
(31.0%)
(28.0%)
(22.0%)
10.9%
(39.0%)
(36.0%)
(33.0%)
(31.0%)
(28.0%)
11.5%
(42.0%)
(42.0%)
(39.0%)
(36.0%)
(33.0%)
12.0%
(47.0%)
(45.0%)
(42.0%)
(42.0%)
(39.0%)

Explore more intrinsic value tools hub for SCSC

FAQ

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

As of Mar 11, 2025, ScanSource, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $23.8. This suggests it may be overvalued by (34.0%) compared to its current price of around $36.1, using a WACC of 10.9% and growth rates of 4.0%.

What is ScanSource, Inc. WACC?

As of Mar 11, 2025, ScanSource, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 10.9%.

What is ScanSource, Inc. Enterprise Value?

As of Mar 11, 2025, ScanSource, Inc.'s Enterprise Value (EV) is approximately $541.0M. 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.