WallStSmart
SCSC

ScanSource Inc

NASDAQ: SCSC · TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION

$42.92
-4.60% today

Updated 2026-06-03

Market cap
$993.26M
P/E ratio
14.85
P/S ratio
0.32x
EPS (TTM)
$3.29
Dividend yield
52W range
$34 – $50
Volume
0.2M

ScanSource Inc (SCSC) Stock Valuation Analysis

Fair value estimate, historical valuation range, and quality signals for SCSC.

WallStSmart Verdict
Fairly
Valued

Valuation reasonably reflects current fundamentals. Limited margin of safety at these levels.

Smart Value Score: 58 / 100
P/E (TTM)
14.8x
vs 5Y median of 12.4x
PEG
0.75
Under 1.0 = undervalued
Margin of Safety
+2.37%
Fair value $35.50 vs $42.92
EV / EBITDA
7.5x

SCSC historical valuation range

Where current P/E sits in SCSC's own 5Y range.

NOW
7.5x
5Y Low
11.1x
25th
12.4x
Median
13.9x
75th
70.3x
5Y High
SCSC is trading more expensive than 87% of the last 5Y.
87th percentile · Historically expensive

SCSC intrinsic value (DCF)

DCF-based fair value estimate vs current market price.

Current price
$42.92
Market value
Intrinsic value
$35.50
DCF estimate
Margin of safety
+2.37%
-17.3% upside to fair value

Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.

SCSC valuation signals

Quick-read green flags, caution flags, and risks based on current metrics.

PEG ratio under 1.0
PEG of 0.75 indicates growth is outpacing the multiple. Traditionally a buy signal for quality compounders.
P/E near 5Y high
Current P/E sits in the 87th percentile of its 5Y range. Historically expensive relative to its own history.
!
Near fair value
+2.37% margin of safety. Price is close to DCF estimate.

P/E Ratio — History

Current: 14.85x

P/S Ratio — History

Current: 0.32x

Is SCSC overvalued in 2026?

ScanSource Inc (SCSC) currently trades at $42.92 per share with a market capitalization of $993,260,000.00. Based on our multi-factor framework, the stock trades at a fair valuation with a Smart Value Score of 58/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.

The stock trades at a P/E ratio of 14.8x, above its 5-year median of 12.4x. The PEG ratio of 0.75 suggests earnings growth is outpacing the multiple, a classic sign of undervaluation.

Looking at its own history, SCSC is currently trading more expensive than 87% of the last 5Y on P/E. This places it in the 87th percentile of its historical range, a zone where forward returns have typically been muted.

Our discounted cash flow model estimates SCSC's intrinsic value at $35.50 per share, against the current market price of $42.92. This implies a margin of safety of +2.37%. The stock is priced close to its estimated fair value, offering limited upside without further operational improvement.

The Piotroski F-Score of 4/9 puts financial quality in a middling range, neither a standout strength nor an obvious red flag.

Bottom line: SCSC trades at a fair valuation on our framework, with a Smart Value Score of 58/100. The valuation is defensible but offers no obvious bargain. Patience or a better entry price may reward disciplined buyers.

Frequently asked questions

Is SCSC overvalued?

SCSC scores 58/100 on our Smart Value Score (Grade C+), a mixed overall profile. The DCF also shows a positive margin of safety, so price and fundamentals line up reasonably well.

What is SCSC's fair value?

Our DCF model estimates SCSC's intrinsic value at $35.50 per share, versus the current price of $42.92, a margin of safety of +2.37%. Fair value is the present value of the cash flows we project the business to produce, so a price below it means the market is pricing the stock below that conservative estimate.

What P/E ratio does SCSC trade at?

SCSC trades at a P/E of 14.8x on trailing twelve-month earnings, against a 5-year median of 12.4x. P/E is what you pay per dollar of profit, and sitting above its own median means the stock is pricier than usual relative to its earnings.

Is SCSC a buy based on valuation?

Our Smart Value rating for SCSC is Hold, from a Smart Value Score of 58/100 that blends growth, quality, and valuation. The profile is balanced and best suited to investors who already have a thesis. This is research to inform your decision, not personalized financial advice.

How does SCSC's valuation compare to its history?

On P/E, SCSC sits in the 87th percentile of its own 5Y range, historically expensive relative to where it has traded. A high percentile means today's multiple is near the top of its historical band.

What is SCSC's Smart Value Score?

SCSC's Smart Value Score is 58/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.