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:
Below please find a table outlining a discounted cash flow forecast for CDW, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that CDW Corp ranked in the 48th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 12.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for CDW Corp ended up being:
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 28.76% of tickers in our DCF set.
The weighted average cost of capital for the company is 7. This value is greater than only 14% stocks in the Technology sector that generate free cash flow.
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 BOX, CSGS, SLP, AMAT, and AMOT.
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