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 towards a more cautious outlook. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 20, an EV to EBITDA of 13.11, and a Price to Book Value of 2.09. When compared to peers, 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 on the lower end of the valuation spectrum.
In terms of recent performance, PC Connection, Inc. has underperformed against the S&P 500, with a year-to-date return of -11.91% compared to the S&P 500's 13.30%. This trend is further reflected in the one-year return of -18.65% for the company against the S&P 500's 14.08%, reinforcing the notion that the stock is currently fairly valued amidst a challenging market environment.