---
title: CDW (CDW) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/cdw
ticker: CDW
as_of: 2026-10-17
sector: Technology
industry: Information Technology Services
---
# CDW (CDW)

CDW (CDW) closed at $150.48 on Oct 16, 2026, undervalued by 14% vs its model value of $175.81 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $150.48 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $175.81 |
| Price vs model | undervalued by 14% vs model |
| Range of that model | $99.88 – $495.82 |
| Market value | $18.8B |
| P/E (fiscal 2025) | 18.6 |
| Net margin (fiscal 2025) | 4.8% |
| Free cash flow (fiscal 2025) | $1.1B |
| Dividend yield (trailing twelve months) | 1.67% |
| Beta | 0.94 |
| Cost of capital (WACC) | 7.85% |
| Business classification | Mature & Stable (Low/slowing growth (~2% recent), Thin margins (4.8% net margin), Pays dividends, Moderately volatile earnings, High leverage (D/E 2.2x), Strong FCF yield (5.8%)) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.67% |
| Dividends per share, last 12 months | $2.52 |
| Dividends / free cash flow (fiscal 2025) | 30.2% |
| Raised | 11+ years in a row |
| Growth over 5 years | 9.5% a year |
| Latest payment | $0.63, ex-date Aug 25, 2026, paid Sep 10, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 24, 2021 | $1.60 |
| To Aug 24, 2022 | $2.00 |
| To Aug 24, 2023 | $2.36 |
| To Aug 26, 2024 | $2.48 |
| To Aug 25, 2025 | $2.50 |
| Trailing twelve months (to Aug 25, 2026) | $2.52 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $175.81 | $99.88 | $495.82 |
| DCF · Perpetuity growth · 10y | cross check | $179.55 | $106.56 | $481.85 |
| DCF · EBITDA exit · 5y | cross check | $115.64 | $55.71 | $186.72 |
| DCF · EBITDA exit · 10y | cross check | $130.99 | $74.06 | $208.18 |
| P/E · peers | cross check | $197.08 | $93.99 | $306.02 |
| P/E · own history | cross check | $225.61 | $196.19 | $251.17 |
| PEG | sanity check | $217.30 | $217.30 | $217.30 |
| EV/EBITDA · peers | cross check | $82.59 | $61.80 | $127.57 |
| EV/Revenue · peers | cross check | $315.06 | $248.44 | $423.70 |
| Earnings power value | cross check | $69.37 | $52.16 | $94.70 |
| Dividend discount | cross check | $57.61 | $39.58 | $94.47 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 1 open-market sale ($3.7M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | NELMS DAVID W | Director | Grant / award | 258 | $0 |
| Oct 1, 2026 | Swedish Joseph | Director | Grant / award | 212 | $0 |
| Sep 24, 2026 | Sanderson Katherine Elizabeth | See Remarks | Tax withholding | 231.81 | $35,638.5 |
| Sep 10, 2026 | Jones Marc Ellis | Director | Grant / award | 19.93 | $2,842 |
| Sep 10, 2026 | NELMS DAVID W | Director | Grant / award | 147.59 | $21,046.3 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 21, 2026 | 8-K | 1.01 Entry into a Material Agreement; 2.03 Creation of a Direct Financial Obligation; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1402057/000119312526396653/d240122d8k.htm |
| Sep 15, 2026 | 424B5 | Prospectus supplement | https://www.sec.gov/Archives/edgar/data/1402057/000119312526392158/d141326d424b5.htm |
| Sep 15, 2026 | 8-K | 1.01 Entry into a Material Agreement; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1402057/000119312526392039/d180681d8k.htm |
| Sep 14, 2026 | 424B5 | Prospectus supplement | https://www.sec.gov/Archives/edgar/data/1402057/000119312526389920/d141326d424b5.htm |
| Aug 5, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1402057/000140205726000065/cdw-20260630.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Bill Nygren | 2026-06-30 | 5,543,451 | $779.6M |
| Richard Pzena | 2026-06-30 | 2,638,900 | $371.1M |
| Druckenmiller | 2026-06-30 | 743,950 | $104.6M |
| Tom Bancroft | 2025-12-31 | 100,000 | $13.6M |

5 tracked managers in all.

## About

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, virt…

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Source: https://sweetvaluelab.com/stocks/cdw (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.