TGM's two-stage DCF values CDW Corporation (CDW) between $76.10 and $155.50 depending on assumptions, with a base case of $103.85. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth (floored at 2%)), fading to 2.5% long-run; the discount rate (8.8%) reflects its beta.
What would today's price require?
$135.43 is justified only if free cash flow grows about +6.7% a year (fading to 2.5% long-run) at a 8.8% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 9.8% | $76.10 |
| Base case | 2.0%/yr | 8.8% | $103.85 |
| Optimistic | 5.0%/yr | 7.8% | $155.50 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 13, 2026 · assumptions not provided | $147.92 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$135.43
Market-Implied Growth
+6.7%/yr
vs -1.2% 5Y actual
Model Scenario Range
$76.10 – $155.50
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for CDW (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.2B · 0.13B shares · net debt $5.6B
Estimated Fair Value
$103.85
-23.3% vs $135.43
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $135.43; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.8% | $137 | $153 | $172 | $196 | $228 |
| 7.8% | $109 | $119 | $132 | $147 | $165 |
| 8.8% | $87.79 | $95.24 | $104 | $114 | $126 |
| 9.8% | $71.92 | $77.45 | $83.73 | $90.91 | $99.23 |
| 10.8% | $59.47 | $63.71 | $68.45 | $73.79 | $79.84 |
