CDW Stock Analysis
NMS · Technology · Information Technology Services
$130.75
-4.67 (-3.45%)
CDW Interactive Price Chart & Trading Signals
CDW Stock Snapshot — Valuation, Risk & Technical Signals
CDW Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$16.35B
P/E Ratio
15.72
Forward P/E
10.88
PEG Ratio
1.33
P/B Ratio
6.71
EPS
$8.32
Dividend Yield
1.86%
52W Range
$97.12 – $167.00
Beta
0.94
Volume
0.4M
ROE
44.0%
Profit Margin
4.6%
Revenue Growth
10.0%
Gross Margin
21.4%
EV/EBITDA
11.44
Analyst Target
$158.67
The trailing price-to-earnings ratio stands at 15.7x. Forward P/E of 10.9x implies earnings expansion expected. Price-to-book is 6.71x. EV/EBITDA sits at 11.44x. Market capitalization is $16.35B. Revenue is growing at 10.0% on a trailing basis. Earnings are expanding at 4.9%. Profit margins are 4.6%. Return on equity is 44.0%. Beta of 0.94 indicates market-average volatility.
Analyst Consensus
Recommendation
Buy
Low Target
$148.00
Mean Target
$158.67
High Target
$171.00
Based on 9 analysts
About CDW
CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Commercial, Government, and Education. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, collaboration hardware, data storage and servers, desktop computers, and other hardware; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, collaboration and productivity applications, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, and managed services, as well as warranties. It serves business, government, education, and healthcare customers. The company was formerly known as CDW Computer Centers, Inc. and changed its name to CDW Corporation in June 2003. CDW Corporation was founded in 1984 and is based in Vernon Hills, Illinois.
CDW Deep Dive Analysis
Bottom Line
Verdict
UndervaluedBest for
Value-oriented investorsWatch out for
None flaggedNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
CDW Corporation (CDW) trades below our multi-model fair value estimate of $172.73 by approximately 32.1%. Trailing P/E: 15.7x. Profitability signals include profit margin of 4.6% and return on equity of 44.0%. Recent growth metrics show revenue growth of 10.0% and earnings growth of 4.9%. Risk profile: beta of 0.94. Consensus: buy.
Valuation, Growth & Risk
Valuation
Undervalued
P/E 15.7x
Price sits below our estimate of fair value.
Growth
Expanding
Rev 10.0%
Revenue is outpacing the market.
Valuation Snapshot
CDW Corporation (CDW) trades below our multi-model fair value estimate of $172.73 by approximately 32.1%. The trailing price-to-earnings ratio stands at 15.7x. Forward P/E of 10.9x suggests earnings compression ahead. Price-to-sales is 0.7x. Price-to-book is 6.7x. EV/EBITDA sits at 11.4x. Market capitalization is $16.35B.
Why it matters: Buying below fair value can create a margin of safety, but always check earnings quality.
Growth & Profitability
Revenue is growing at 10.0% on a trailing basis. Earnings are expanding at 4.9%. Profit margins are 4.6%. Return on equity is 44.0%. Return on assets is 6.6%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 0.94 indicates market-average volatility. Net debt position is $6.07B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $158.67 implies 21.3% upside. Target range spans $148.00 to $171.00. 9 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
The combination of undervaluation and moderate risk may suit value-oriented investors. Free cash flow yield of 6.7% is attractive for cash-flow-focused investors.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
CDW Undervalued
CDW Corporation (CDW) trades below our multi-model fair value estimate of $172.73 by approximately 32.1%.
Frequently Asked Questions
ValuationIs CDW stock overvalued right now?
ValuationWhat is CDW fair value based on current fundamentals?
RiskHow risky is CDW compared with other stocks?
GrowthIs CDW still growing?
AnalystWhat do analysts think about CDW?
DividendDoes CDW pay a dividend?
CatalystWhat could change the investment case for CDW?
Related Stocks
About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.