Is ScanSource, Inc. overvalued or undervalued?

As of 22 August 2025, the valuation grade for ScanSource, Inc. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, supported by a P/E ratio of 13, an EV to EBITDA of 7.91, and a Price to Book Value of 1.04. In comparison, peers such as TD SYNNEX Corp. have a P/E of 17.48 and Arrow Electronics, Inc. shows a significantly higher P/E of 29.60, highlighting ScanSource's relative undervaluation in the market.
Despite recent challenges, including a year-to-date return of -6.58% compared to the S&P 500's 12.22%, ScanSource has shown resilience over the longer term, with a 5-year return of 122.76%, outperforming the S&P 500's 96.61%. This performance, combined with its attractive valuation metrics, suggests that ScanSource, Inc. presents a compelling investment opportunity.