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 14.06 is considered Undervalued compared with the five-year average of 19.60. The fair price of CDW Corp (CDW) is between 193.49 to 236.88 according to relative valuation methord. Compared to the current price of 143.68 USD , CDW Corp is Undervalued By 25.74%.
Relative Value
Fair Zone
193.49-236.88
Current Price：143.68
25.74%
Undervalued
14.15
PE
1Y
3Y
5Y
Trailing
Forward
11.20
EV/EBITDA
CDW Corp. (CDW) has a current EV/EBITDA of 11.20. The 5-year average EV/EBITDA is 14.59. The thresholds are as follows: Strongly Undervalued below 11.39, Undervalued between 11.39 and 12.99, Fairly Valued between 16.19 and 12.99, Overvalued between 16.19 and 17.79, and Strongly Overvalued above 17.79. The current Forward EV/EBITDA of 11.20 falls within the Strongly Undervalued range.
12.00
EV/EBIT
CDW Corp. (CDW) has a current EV/EBIT of 12.00. The 5-year average EV/EBIT is 15.72. The thresholds are as follows: Strongly Undervalued below 12.44, Undervalued between 12.44 and 14.08, Fairly Valued between 17.35 and 14.08, Overvalued between 17.35 and 18.99, and Strongly Overvalued above 18.99. The current Forward EV/EBIT of 12.00 falls within the Strongly Undervalued range.
0.83
PS
CDW Corp. (CDW) has a current PS of 0.83. The 5-year average PS is 1.13. The thresholds are as follows: Strongly Undervalued below 0.78, Undervalued between 0.78 and 0.96, Fairly Valued between 1.31 and 0.96, Overvalued between 1.31 and 1.49, and Strongly Overvalued above 1.49. The current Forward PS of 0.83 falls within the Undervalued range.
15.25
P/OCF
CDW Corp. (CDW) has a current P/OCF of 15.25. The 5-year average P/OCF is 21.07. The thresholds are as follows: Strongly Undervalued below 13.46, Undervalued between 13.46 and 17.27, Fairly Valued between 24.88 and 17.27, Overvalued between 24.88 and 28.68, and Strongly Overvalued above 28.68. The current Forward P/OCF of 15.25 falls within the Undervalued range.
17.38
P/FCF
CDW Corp. (CDW) has a current P/FCF of 17.38. The 5-year average P/FCF is 23.81. The thresholds are as follows: Strongly Undervalued below 13.98, Undervalued between 13.98 and 18.90, Fairly Valued between 28.73 and 18.90, Overvalued between 28.73 and 33.65, and Strongly Overvalued above 33.65. The current Forward P/FCF of 17.38 falls within the Undervalued range.
CDW Corp (CDW) has a current Price-to-Book (P/B) ratio of 7.37. Compared to its 3-year average P/B ratio of 13.26 , the current P/B ratio is approximately -44.42% higher. Relative to its 5-year average P/B ratio of 17.55, the current P/B ratio is about -57.99% higher. CDW Corp (CDW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.72%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.54% , the current FCF yield is about -100.00% lower.
7.42
P/B
Median3y
13.26
Median5y
17.55
5.39
FCF Yield
Median3y
4.72
Median5y
4.54
Competitors Valuation Multiple
The average P/S ratio for CDW's competitors is 2.10, providing a benchmark for relative valuation. CDW Corp Corp (CDW) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 4.00%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CDW decreased by 16.95% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.52B to 5.74B.
The secondary factor is the P/E Change, contributed -9.28%to the performance.
Overall, the performance of CDW in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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