Connection offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories. The company was founded in 1982 and is based in Merrimack, New Hampshire.
CNXN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Pc Connection Inc. To summarize, we found that Pc Connection Inc ranked in the 15th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for CNXN, they are:
In the past 5.68 years, Pc Connection Inc has a compound free cash flow growth rate of 0%; that's higher than just 19.07% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than only 5.45% of the free cash flow producing stocks we're observing.
CNXN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 55.57% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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MERRIMACK, N.H.--(BUSINESS WIRE)--Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading technology solutions provider to business, government, and education markets, today announced results for the second quarter ended June 30, 2020. Net sales for the quarter ended June 30, 2020 decreased by 25.8% to $550.0 million, compared to $741.1 million for the prior year quarter. The reduction in revenue year on year is primarily due to the impact of the COVID-19 pandemic, which resulted in lower dem