We’ve recently updated our valuation analysis.

CDW Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CDW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA15x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

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

CDW PE Ratio vs 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.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.7x
ARW Arrow Electronics
4.3x-20.7%US$6.0b
SNX TD SYNNEX
14.8x25.9%US$8.1b
AVT Avnet
4.9x-4.4%US$3.4b
NSIT Insight Enterprises
11x9.5%US$2.9b
CDW CDW
21.1x13.6%US$21.3b

Price-To-Earnings vs Peers: CDW is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the peer average (8.7x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: CDW is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the US Electronic industry average (14.3x)


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 Ratio21.1x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: CDW is good value based on its Price-To-Earnings Ratio (21.1x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


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 ($157.73) is trading above our estimate of fair value ($157.66)

Significantly Below Fair Value: CDW is trading above our estimate of fair value.


Analyst Price Targets

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

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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