TacticScale

What PC Connection Does & How It Makes Money (CNXN)

Updated October 2026 · reflects PC Connection's latest reported financials

IT solutions provider and reseller of computer hardware, software, and services. It earns most of its revenue by reselling third-party hardware, software, and cloud products at a markup.

PC Connection's story, moat and numbers — in a 3-minute visual book.

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How PC Connection makes money

It earns most of its revenue by reselling third-party hardware, software, and cloud products at a markup. It also charges fees for managed, professional, and configuration services.

What PC Connection does

PC Connection, founded in 1982 and headquartered in Merrimack, New Hampshire, is an IT solutions provider and distributor serving customers worldwide. It reports three segments: Enterprise Solutions for large corporations, Business Solutions for small and medium-sized businesses, including small office/home office customers, and Public Sector Solutions for federal, state, and local government and for K-12 and higher education. Its range runs from computers, servers, storage, networking, displays, printers, and software to higher-value work such as data center and AI solutions, cybersecurity, multicloud, digital workspace, and supply chain and lifecycle services. It also offers managed and professional services, plus design, configuration, and implementation of IT systems. The company reaches customers through its websites, inside and field sales teams, digital advertising, and targeted marketing, and it serves industries including healthcare, manufacturing, and retail.

Products & services

What is PC Connection worth?

On an owner-earnings DCF, PC Connection's most-likely value is about $74 versus a recent price near $93 (20% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$47) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge
Owner-earnings fair value · recent price ≈ $93
Fair value (most likely)
$74
Range
$63–$99
No-growth floor
$47
Price
~$93

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Technology Industry Electronics & Computer Distribution HQ United States Ticker CNXN Official site

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