Is CDW Corp (CDW) undervalued or overvalued?

Our model estimates a fair value of about $244 against a price of $150.48 (Undervalued, +62% to fair value). It blends a 10-year DCF, sector multiples and earnings-power value and is a model estimate, not advice.

What is the X-Ray Score for CDW?

CDW Corp has an X-Ray Score of 46 out of 100, built from valuation, growth, profitability, financial health and dividend lenses ranked against Information Technology peers.

Where does the data for CDW come from?

Financial statements come from SEC EDGAR filings, prices from exchange price feeds, and industry betas and equity risk premium from Damodaran Online (NYU Stern).

CDW Corp (CDW)

Information Technology · Technology Distributors · US stock · S&P 500 component

$150.48 ▼ -3.85 (2.49%)

At close 16 Oct 2026 · USD · Volume 2,562,000

Historical data Research report SEC filings

Fair valueUndervalued

$244 +62.4% to fair value

$122fair band $171–$318$367

Day's range

$149.00 – $156.01

52-week range

$96.09 – $158.05

About CDW Corp

CDW provides information technology products and services to businesses, government agencies, schools and universities, and healthcare organisations in North America and the United Kingdom. It brings together hardware, software and services from many technology makers, including laptops, servers, networking gear, cloud and security offerings, and helps customers choose, set up and manage them. Customers can work with account managers, order online or use technical specialists.

CDW earns money from the margin on the hardware and software it distributes and from service fees. The last twelve months brought revenue of $23.5 billion, and revenue growth over the last three years was -1.9% a year, a decline. The operating margin is 7.1%, and the business earns a profit of 16% on the capital invested in it. It has net debt of 2.8 times EBITDA. The company pays a dividend with a yield of 1.7%. On the site's X-Ray Score it receives 46 out of 100.

Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.

Price chart

Historical data & CSV

52-wk range $96.09 – $158.05Volume 2,562,000Daily, split-adjusted

Vitals

Market cap$19.2B

52-week range$96.09 – $158.05

Volume (last day)2,562,000

P/E (TTM)18.1

EBIT / EV yield6.8%

Free-cash-flow yield4.5%

Dividend yield1.7%

Revenue (TTM)$23.5B

Net income (TTM)$1.1B

Operating margin7.1%

Return on capital15.8%

Debt incl. leases$5.8B

Cash & securities$362M

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$244model spread $233 – $257

Undervalued +62.4% to fair value

Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.

Price $150

Undervalued < $171Fair $171 – $318Overvalued > $318

10-year DCF (market-scaled)

$181

Peer multiples

$290

Earnings power floor (not blended)

$81

Fundamentals-adjusted multiple

$262

Growth the price implies

7.4%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.

What this means

Weak business, but the price is low

Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better 37 The price is not above fair value $244 fair value Debt looks manageable 2.8× EBITDA Revenue has been growing -1.9% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.

Valuation Strong

81/100

Cheap against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield6.8%

Free-cash-flow yield4.5%

Fair value vs price1.6×

Growth Weak

21/100

Growing slower than most of its sector.

See the numbers →

Revenue growth (3y)-1.9%

EPS growth (3y)-0.2%

Growth consistency70%

Profitability Weak

43/100

Earns lower returns on its capital than most peers.

See the numbers →

Return on invested capital15.8%

Operating margin7.1%

Gross profitability29.1%

Financial health Weak

30/100

Balance sheet is more stretched than most peers.

See the numbers →

Piotroski F-Score5 / 9

Net debt / EBITDA2.8×

Interest coverNo interest cost

Dividends Fair

53/100

Dividend is typical for its sector.

See the numbers →

Dividend yield1.7%

Dividends vs free cash flow37%

Dividend growth5.2%

Quarterly results: last 6 quarters

+6.7%

Mar '25

+10.2%

Jun '25

+4.0%

Sep '25

+6.3%

Dec '25

+9.2%

Mar '26

+10.0%

Jun '26

Revenue against the same quarter a year earlier. Latest quarter revenue $6.6B, diluted EPS $2.15.

Fundamentals checklist

● 3 Good · ● 4 Average · ● 9 Bad

Cash quality

Earnings backed by cashBad

Free-cash-flow yieldAverage

Risk models

Altman Z''Bad

Piotroski F-ScoreBad

Growth

EPS growth (3y)Average

Free-cash-flow growth (3y)Bad

Revenue growth (3y)Bad

Growth consistencyBad

Balance sheet

Current ratioBad

Net debt / EBITDABad

Interest coverGood

Valuation

Fair value vs priceGood

EBIT / EV yieldGood

Profitability

Return on invested capitalAverage

Operating marginBad

Gross profitabilityAverage

Each check is graded against the company's sector, not a fixed number. Checklist score 41/100.

Financials

	FY21	FY22	FY23	FY24	FY25
Revenue	$20.8B	$23.7B	$21.4B	$21.0B	$22.4B
Operating income	$1.4B	$1.7B	$1.7B	$1.7B	$1.7B
Net income	$989M	$1.1B	$1.1B	$1.1B	$1.1B
Operating cash flow	$785M	$1.3B	$1.6B	$1.3B	$1.2B
Operating margin	6.8%	7.3%	7.9%	7.9%	7.4%
Free cash flow	$685M	$1.2B	$1.5B	$1.2B	$1.1B
Diluted EPS	$7.04	$8.13	$8.10	$7.97	$8.08

Fiscal years, from SEC filings.

Technical summary

Daily

Strongly bullish

12 bullish · 1 neutral · 3 bearish

Weekly

Strongly bullish

10 bullish · 1 neutral · 1 bearish

Monthly

Neutral

4 bullish · 1 neutral · 3 bearish

Moving averages (daily)

SMA 10	143.9	Bullish
EMA 10	145.9	Bullish
SMA 20	140.6	Bullish
EMA 20	143.6	Bullish
SMA 50	142.2	Bullish
EMA 50	141.7	Bullish
SMA 100	138.4	Bullish
EMA 100	138.5	Bullish
SMA 200	130.8	Bullish
EMA 200	138.2	Bullish

Oscillators (daily)

RSI (14)	58.89	Neutral
MACD (12, 26)	2.00	Bullish
Momentum (12)	17.42	Bullish
Stochastic %K (14)	80.42	Bearish
Williams %R (14)	-19.58	Bearish
CCI (20)	112.9	Bearish

Pivot points (classic, last session)

140.6

144.8

147.7

Pivot

151.8

154.7

158.8

161.7

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

Dividends

Paid, last 12 months

2.52 USD

Yield on today's price

1.67%

Frequency

Quarterly

Next ex-dividend date

Not announced

Ex-dividend date	Amount per share
25 Aug 2026	0.6300
22 May 2026	0.6300
25 Feb 2026	0.6300
25 Nov 2025	0.6300
25 Aug 2025	0.6250
23 May 2025	0.6250
25 Feb 2025	0.6250
25 Nov 2024	0.6250
26 Aug 2024	0.6200
23 May 2024	0.6200
23 Feb 2024	0.6200
22 Nov 2023	0.6200