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CDW Corporation — Intrinsic Value & Fair Price

CDW
NASDAQTechnologyInformation Technology ServicesCIK 0001402057cdw.comAbout CDW
Last close · Oct 16, 2026150.48−3.85 (−2.49%)
Market cap$18.8B
Model value · DCF · Perpetuity growth · 5y
175.81
CDW closed at $150.48 — undervalued by 14% vs model.
99.88the model's range495.82

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
57.61 – 315.06
Wall St. target
150.00 0% above
Below model, 1y
17 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
1.67%
Past 2 years
low 1.07%high 2.53%
Dividends per share, a year at a time
$1.60Aug ’21$2.00Aug ’22$2.36Aug ’23$2.48Aug ’24$2.50Aug ’25$2.52TTM
Dividends / free cash flow, FY2025
30.2%
Raised
11+ years in a row
Growth, 5 yrs
9.5% a year
Last change
+0.8% · Nov 2025
Every payment, with ex-dates · latest $0.63, paid Sep 10, 2026

Research on CDW

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How it is valued

Valued asMature & stable
Low/slowing growth (~2% recent)Thin margins (4.8% net margin)Pays dividendsModerately volatile earningsHigh leverage (D/E 2.2x)Strong FCF yield (5.8%)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
18.6×
EV / EBITDA
12.2×
FCF yield
5.5%
Dividend yield, TTM
1.67%
Beta
0.94
Cost of capital (WACC)
7.85%
Full financials

Analyst actions

third-party, quoted
09-08Barclays · target150.00
08-06Morgan Stanley · target171.00
06-23Morgan Stanley · “Overweight” from “Equal Weight”upgrade
06-23Morgan Stanley · target170.00
Ratings, targets and estimates

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just CDW. No account.

About CDW

CDW Corporation specializes in delivering comprehensive information technology services and products across North America and the United Kingdom. It strategically targets three core client divisions: corporate enterprises, small to medium-sized businesses, and public sector organizations. Their portfolio encompasses both individual hardware and software offerings, alongside sophisticated integrated IT solution packages. These comprehensive solutions span on-premise, hybrid, and cloud environments, addressing critical areas such as data center infrastructure, network management, digital workspace enablement, and robust security. Key hardware categories include mobile computing devices (laptops, tablets), network infrastructure components, desktop workstations, display units, and enterprise data storage systems, while software offerings feature application suites, cybersecurity tools, virtualization platforms, operating systems, and network management utilities. Beyond products, CDW delivers a broad spectrum of services, including expert advisory and design, custom software development, system implementation, ongoing managed services, specialized professional support, configuration assistance, and telecommunications solutions, complemented by product warranties. They also focus on providing mission-critical software, system, and network solutions. Furthermore, installation, deployment, and repair services are facilitated for customers, often leveraging a network of third-party partners. Their diverse clientele includes governmental bodies, educational institutions, healthcare providers, and businesses of all scales – from small enterprises to major corporations. Established in 1984, the company maintains its primary corporate offices in Vernon Hills, Illinois.

CEO
Christine A. Leahy
Headquarters
Vernon Hills, IL
Employees
14,800
IPO
2013-06-27
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.