Is PC Connection, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for PC Connection, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 20, an EV to EBITDA of 13.11, and a Price to Book Value of 2.09. In comparison, Viavi Solutions, Inc. has a P/E of 55.50, while Omnicell, Inc. boasts a P/E of 73.77, highlighting that PC Connection, Inc. is positioned more conservatively relative to its peers.
Despite a strong dividend yield of 71.48% and a solid ROCE of 18.84%, the company's recent stock performance has lagged behind the S&P 500, particularly over the past year, where it returned -18.65% compared to the index's 14.08%. This underperformance, coupled with its fair valuation grade, suggests that while the company is not overvalued, it may face challenges in generating investor interest in the near term.