CDW Corporation offers discrete hardware and software products to integrated IT solutions, including mobility, security, data center optimization, cloud computing, virtualization, and collaboration. The company was founded in 1984 and is based in Vernon Hills, Illinois.
CDW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for CDW Corp. To summarize, we found that CDW Corp ranked in the 39th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 31%. As for the metrics that stood out in our discounted cash flow analysis of CDW Corp, consider:
As a business, CDW is generating more cash flow than 79.42% of positive cash flow stocks in the Technology.
CDW Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 21.23% of tickers in our DCF set.
CDW's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 21.23% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CDW, try APPF, FN, ACN, ADI, and IT.
The tech sector has had a rough time this week, with the Invesco QQQ Trust (QQQ) dropping by over 5% over a two-day period. Many names in this sector, however, are still trading at nosebleed valuations. The technology company that I’m evaluating today, CDW Corporation (CDW), one that I believe...
LINCOLNSHIRE, Ill., July 22, 2020 (GLOBE NEWSWIRE) -- CDW Corporation (Nasdaq:CDW), a leading multi-brand technology solutions provider to business, government, education and healthcare customers in the United States, the United Kingdom and Canada, today announced that it will host a webcast conference call to discuss its second quarter 2020 results on Wednesday, August 5, 2020, at 7:30 a.m. CT/8:30 a.m. ET. A live webcast (audio with slides) of the conference call will be accessible at investor.CDW.com. The press release and presentation slides will be posted on this website prior to the call. Please visit the website at least fifteen minutes prior to the call to register and to download and install any necessary software. A taped replay of the webcast will be available on the website...
LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--CDW Corporation (NASDAQ: CDW) today announced the appointment of Sanjay Sood into the newly created role of chief technology officer, following the planned retirement of Jon Stevens, senior vice president, operations and chief information officer, after 19 years with CDW. Sood brings over 15 years of rich history in driving innovative change within technology environments. He was most recently vice president of highly automated driving at HERE Technologies,