CDW Valuation

Is CDW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CDW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CDW ($177.8) is trading below our estimate of fair value ($199.28)

Significantly Below Fair Value: CDW is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CDW?

Key metric: As CDW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CDW. This is calculated by dividing CDW's market cap by their current earnings.
What is CDW's PE Ratio?
PE Ratio21.4x
EarningsUS$1.11b
Market CapUS$24.17b

Price to Earnings Ratio vs Peers

How does CDW's PE Ratio compare to its peers?

The above table shows the PE ratio for CDW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.2x
SNX TD SYNNEX
15.2x16.3%US$10.3b
ARW Arrow Electronics
13x12.7%US$6.4b
NSIT Insight Enterprises
16.3x12.4%US$4.9b
INGM Ingram Micro Holding
16.1x28.2%US$5.2b
CDW CDW
21.4x8.8%US$24.2b

Price-To-Earnings vs Peers: CDW is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the peer average (15.2x).


Price to Earnings Ratio vs Industry

How does CDW's PE Ratio compare vs other companies in the US Electronic Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SHMD SCHMID Group
2.6xn/aUS$103.14m
SGE Strong Global Entertainment
3.8xn/aUS$12.27m
SPEC Spectaire Holdings
0.03xn/aUS$959.82k
SMX SMX (Security Matters)
0.4xn/aUS$624.59k
No more companies available in this PE range
CDW 21.4xIndustry Avg. 25.4xNo. of Companies11PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CDW is good value based on its Price-To-Earnings Ratio (21.4x) compared to the US Electronic industry average (25.3x).


Price to Earnings Ratio vs Fair Ratio

What is CDW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CDW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.4x
Fair PE Ratio23.4x

Price-To-Earnings vs Fair Ratio: CDW is good value based on its Price-To-Earnings Ratio (21.4x) compared to the estimated Fair Price-To-Earnings Ratio (23.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CDW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$177.80
US$223.52
+25.7%
6.5%US$250.00US$190.00n/a12
Nov ’25US$188.38
US$223.75
+18.8%
7.0%US$250.00US$190.00n/a11
Oct ’25US$217.81
US$249.48
+14.5%
4.8%US$270.00US$229.00n/a11
Sep ’25US$225.64
US$249.93
+10.8%
4.7%US$270.00US$229.00n/a11
Aug ’25US$213.59
US$251.20
+17.6%
4.6%US$270.00US$229.00n/a10
Jul ’25US$219.19
US$252.80
+15.3%
5.4%US$274.00US$232.00n/a10
Jun ’25US$223.62
US$250.89
+12.2%
5.3%US$274.00US$232.00n/a9
May ’25US$214.61
US$258.34
+20.4%
7.5%US$295.00US$232.00n/a10
Apr ’25US$253.06
US$262.14
+3.6%
6.6%US$300.00US$229.00n/a10
Mar ’25US$247.32
US$257.14
+4.0%
4.6%US$274.00US$229.00n/a10
Feb ’25US$230.08
US$234.11
+1.8%
5.7%US$255.00US$216.00n/a10
Jan ’25US$227.32
US$226.81
-0.2%
3.8%US$240.00US$215.00n/a10
Dec ’24US$212.56
US$226.81
+6.7%
3.8%US$240.00US$215.00n/a10
Nov ’24US$199.16
US$225.53
+13.2%
4.2%US$240.00US$214.30US$188.3810
Oct ’24US$201.76
US$220.59
+9.3%
3.3%US$235.00US$214.30US$217.819
Sep ’24US$213.18
US$220.56
+3.5%
3.1%US$235.00US$215.00US$225.6410
Aug ’24US$187.33
US$205.06
+9.5%
5.6%US$230.00US$185.00US$213.5910
Jul ’24US$183.50
US$200.62
+9.3%
4.4%US$217.60US$185.00US$219.199
Jun ’24US$173.28
US$200.08
+15.5%
4.6%US$217.60US$185.00US$223.628
May ’24US$170.32
US$204.88
+20.3%
3.8%US$220.00US$195.00US$214.618
Apr ’24US$194.89
US$224.00
+14.9%
3.6%US$240.00US$214.00US$253.068
Mar ’24US$200.78
US$223.66
+11.4%
4.3%US$240.00US$204.90US$247.329
Feb ’24US$199.18
US$215.77
+8.3%
5.2%US$240.00US$200.00US$230.089
Jan ’24US$178.58
US$211.32
+18.3%
5.9%US$240.00US$200.00US$227.329
Dec ’23US$191.21
US$210.21
+9.9%
5.5%US$240.00US$200.00US$212.569
Nov ’23US$172.58
US$212.43
+23.1%
5.8%US$240.00US$200.00US$199.169

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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