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 investment quality. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 20, while the EV to EBITDA is 13.11, and the PEG ratio is 2.55, suggesting that the stock is priced in line with its earnings growth expectations.
In comparison to its peers, PC Connection, Inc. has a P/E ratio of 20.45, while Viavi Solutions, Inc. is also rated fair with a significantly higher P/E of 55.50, and Q2 Holdings, Inc. is attractive with a P/E of 460.47, highlighting the varying valuations within the sector. Notably, the company's stock has underperformed against the S&P 500 over the past year, returning -18.65% compared to the index's 14.08%, which reinforces the notion that it may not be the most compelling investment at this time.