CDW Valuation

CDW Corp

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164.760

-1.11(-0.669%)1D

Overview
Forecast
Valuation
Earnings

CDW Relative Valuation

CDW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CDW is overvalued; if below, it's undervalued.

Historical Valuation

CDW Corp (CDW) is now in the Undervalued zone, suggesting that its current forward PE ratio of 16.52 is considered Undervalued compared with the five-year average of 19.84. The fair price of CDW Corp (CDW) is between 249.57 to 288.47 according to relative valuation methord. Compared to the current price of 164.76 USD , CDW Corp is Undervalued By 33.98%.

Relative Value

Fair Zone

249.57-288.47

Current Price：164.76

33.98%

Undervalued

16.52

Trailing

Forward

12.58

EV/EBITDA

CDW Corp. (CDW) has a current EV/EBITDA of 12.58. The 5-year average EV/EBITDA is 14.69. The thresholds are as follows: Strongly Undervalued below 11.74, Undervalued between 11.74 and 13.22, Fairly Valued between 16.17 and 13.22, Overvalued between 16.17 and 17.65, and Strongly Overvalued above 17.65. The current Forward EV/EBITDA of 12.58 falls within the Undervalued range.

13.71

EV/EBIT

CDW Corp. (CDW) has a current EV/EBIT of 13.71. The 5-year average EV/EBIT is 15.86. The thresholds are as follows: Strongly Undervalued below 12.90, Undervalued between 12.90 and 14.38, Fairly Valued between 17.35 and 14.38, Overvalued between 17.35 and 18.83, and Strongly Overvalued above 18.83. The current Forward EV/EBIT of 13.71 falls within the Undervalued range.

0.97

CDW Corp. (CDW) has a current PS of 0.97. The 5-year average PS is 1.14. The thresholds are as follows: Strongly Undervalued below 0.80, Undervalued between 0.80 and 0.97, Fairly Valued between 1.31 and 0.97, Overvalued between 1.31 and 1.48, and Strongly Overvalued above 1.48. The current Forward PS of 0.97 falls within the Historic Trend Line -Fairly Valued range.

16.26

P/OCF

CDW Corp. (CDW) has a current P/OCF of 16.26. The 5-year average P/OCF is 21.23. The thresholds are as follows: Strongly Undervalued below 13.92, Undervalued between 13.92 and 17.57, Fairly Valued between 24.88 and 17.57, Overvalued between 24.88 and 28.53, and Strongly Overvalued above 28.53. The current Forward P/OCF of 16.26 falls within the Undervalued range.

18.05

P/FCF

CDW Corp. (CDW) has a current P/FCF of 18.05. The 5-year average P/FCF is 23.72. The thresholds are as follows: Strongly Undervalued below 13.55, Undervalued between 13.55 and 18.64, Fairly Valued between 28.80 and 18.64, Overvalued between 28.80 and 33.88, and Strongly Overvalued above 33.88. The current Forward P/FCF of 18.05 falls within the Undervalued range.

CDW Corp (CDW) has a current Price-to-Book (P/B) ratio of 8.75. Compared to its 3-year average P/B ratio of 14.18 , the current P/B ratio is approximately -38.25% higher. Relative to its 5-year average P/B ratio of 17.92, the current P/B ratio is about -51.16% higher. CDW Corp (CDW) has a Forward Free Cash Flow (FCF) yield of approximately 4.72%. Compared to its 3-year average FCF yield of 4.69%, the current FCF yield is approximately 0.53% lower. Relative to its 5-year average FCF yield of 4.52% , the current FCF yield is about 4.46% lower.

8.75

P/B

Median3y

14.18

Median5y

17.92

4.72

FCF Yield

Median3y

4.69

Median5y

4.52

Competitors Valuation Multiple

The average P/S ratio for CDW's competitors is 11.59, providing a benchmark for relative valuation. CDW Corp Corp (CDW) exhibits a P/S ratio of 0.97, which is -91.63% above the industry average. Given its robust revenue growth of 10.20%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SS&C Technologies Holdings Inc

Credo Technology Group Holding Ltd

Guidewire Software Inc

Performance Decomposition

Market capitalization of CDW decreased by 26.94% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.42B to 5.98B.

The secondary factor is the Margin Expansion, contributed -12.36%to the performance.

Overall, the performance of CDW in the past 1 year is driven by Revenue Growth. Which is more sustainable.

10.20%

5.42B → 5.98B

Revenue Growth

-12.36%

5.18 → 4.54

Margin Expansion

-24.78%

27.22 → 20.48

P/E Change

-26.94%