CDW Corporation (CDW) DCF Valuation
TGM's two-stage DCF values CDW Corporation (CDW) between $72.95 and $148.18 depending on assumptions, with a base case of $99.33. 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 (9%) reflects its beta.
What would today's price require?
$133.30 is justified only if free cash flow grows about +7.1% a year (fading to 2.5% long-run) at a 9% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 10.0% | $72.95 |
| Base case | 2.0%/yr | 9.0% | $99.33 |
| Optimistic | 5.0%/yr | 8.0% | $148.18 |
| Analyst DCF (FMP) | independent reference — different model | $170.57 | |
Current Price
$133.30
Market-Implied Growth
+7.1%/yr
vs -3.5% 5Y actual
Model Scenario Range
$72.95 – $148.18
model output — not a price target
CDW DCF Fair Value Calculator
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
$96.98
-27.3% vs $133.30
Sensitivity — fair value by discount rate × terminal growth
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 $133.30; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 7.0% | $134 | $145 | $159 | $176 | $198 |
| 8.0% | $107 | $114 | $122 | $133 | $145 |
| 9.0% | $86.33 | $91.27 | $96.98 | $104 | $111 |
| 10.0% | $70.91 | $74.43 | $78.41 | $82.97 | $88.22 |
| 11.0% | $58.75 | $61.33 | $64.21 | $67.45 | $71.12 |
About CDW Corporation
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, virtualization platforms, operating systems, and network management utilities. Beyond products, CDW delivers a broad spectrum of services, including expert advisory and design, custom software development, system implementation, ongoing managed services, specialized professional support, configuration assistance, and telecommunications solutions, complemented by product warranties. They also focus on providing mission-critical software, system, and network solutions. Furthermore, installation, deployment, and repair services are facilitated for customers, often leveraging a network of third-party partners. Their diverse clientele includes governmental bodies, educational institutions, healthcare providers, and businesses of all scales – from small enterprises to major corporations. Established in 1984, the company maintains its primary corporate offices in Vernon Hills, Illinois.
- Sector
- Technology
- Industry
- Information Technology Services
- CEO
- Christine A. Leahy