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CDW Corporation (CDW)

Fair Value
TechnologyInformation Technology ServicesUnited States

Fundamental

59

Price

$128.16

Market Cap

$17.43B

Part 1 · What the company is worth

Overview

CDW resells and configures IT hardware, software and services — laptops, servers, networking gear, cloud subscriptions and cybersecurity tools — sourced from major technology vendors and sold to businesses, schools, hospitals and government agencies across the US, UK and Canada. It does not manufacture anything: its value is sourcing, financing, configuring and supporting technology purchases that customers would otherwise have to manage themselves across dozens of vendors.

How it makes money

CDW earns a margin on every device, license or service it resells, plus fees for configuration, financing and managed services layered on top. Its US business is split by customer type — large corporate accounts, small businesses, and public-sector buyers such as government, education and healthcare — each with different buying cycles and margins, while UK and Canada operations extend the same reseller model internationally. Volume rebates and incentive programmes from vendor partners are a meaningful part of gross profit.

Revenue by segment

Corporate42.1%

US private-sector business customers with more than 250 employees, CDW's largest and generally most profitable customer group.

Public38.1%

US government agencies plus education and healthcare institutions, which buy on longer cycles tied to budget calendars.

Other (UK and Canada)12.1%

CDW's operations outside the United States, extending the same reseller model to UK and Canadian customers.

Small Business7.7%

US private-sector business customers with up to 250 employees, generally smaller deal sizes and higher relative service needs.

Competitive moat

Scale · Narrow

CDW's size gives it purchasing terms, financing capacity and a breadth of vendor relationships that smaller resellers cannot match, and public-sector and education customers value a single vendor that can source almost any technology product. But reselling is a business other large-scale competitors can replicate, and vendors themselves can sell direct, so the advantage is narrow rather than durable pricing power.

What drives demand

Cyclical

Demand tracks corporate and public-sector technology budgets, which expand in good years and are among the first line items businesses cut when conditions weaken. The public-sector segment is more insulated, buying on multi-year budget cycles rather than discretionary spend, which partly offsets swings in the corporate and small-business segments.

Key risks

  • Vendor concentration and dependence — Results depend on maintaining favorable terms and volume incentives with a limited number of major technology vendors; a change in a vendor's distribution strategy, pricing or direct-sales push could materially affect margins.
  • Supply chain and trade policy exposure — A large share of the products CDW sells are manufactured outside the US, mainly in Asia, so tariffs, trade restrictions or regional instability can disrupt the flow of product and raise costs.
  • Gross margin volatility — Gross profit depends on factors CDW does not fully control, including vendor product costs, price protection and the availability of purchase incentives, which can fluctuate materially.
  • Public-sector budget cycles — The Public segment depends on government, education and healthcare budget cycles, so funding delays or cuts at that level can push out or shrink orders.

Customer concentration

CDW serves a large, diversified base of business and public-sector customers with no single customer representing a material share of sales; its concentration risk instead runs through a relatively small number of large technology vendors.

The case for

Buyers point to CDW's scale, breadth of vendor relationships and diversified customer base across corporate, small business and public-sector accounts as a durable position in a fragmented reseller market that keeps growing with overall IT spending.

The case against

Sellers worry that vendors expanding direct sales, thin and volatile gross margins tied to incentive programmes outside CDW's control, and cyclical corporate technology budgets leave limited room for the business to differentiate on anything but scale.

Segment figures from fiscal year 2025Sources: CDW Reports Fourth Quarter and Full Year 2025 Earnings

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

P/E: 23.3Score: 77Market cap: $4.59B

The closest listed peer: it resells the same hardware, software and cloud subscriptions and sells the same integration and managed services to mid-market, enterprise and public-sector customers in North America, and its own 10-K names CDW as a competitor.

SHI International Corp.Not tracked

Private US reseller of comparable scale that competes with CDW on the same large software licensing renewals and device fleets for corporate and government accounts.

World Wide Technology Holding Co., LLCNot tracked

Private integrator that competes for the same enterprise and public-sector infrastructure projects, and since acquiring Softchoice in March 2025 also for the same software and cloud reselling business in North America.

PC Connection, Inc. (Connection)CNXN

Listed US reseller serving the same small-business, corporate and education customers with the same catalogue of IT products and deployment services, though at a much smaller scale.

ePlus inc.PLUS

Listed provider that bids on the same mid-market and state-and-local-government technology deals, combining product resale with professional and managed services as CDW does.

Presidio, Inc.Not tracked

Private US integrator competing for the same enterprise networking, security and cloud engagements, where the customer chooses one partner to both supply and deploy the technology.

Balance Sheet & Liquidity

Revenue

$23.50B

Trailing 12 months (through 6/30/2026)

Net Income

$1.08B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$1.09B

Total Equity

$2.61B

Total Liabilities

$13.42B

Current Ratio

1.17

Interest Coverage

-

Debt/EBITDA

3.06

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$160.16

Current Price

$128.16

Margin of Safety

+20.0%

Fair Value Range

$113.31 - $207.01

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$158.67
Discounted cash flow (DCF):$227.96
Earnings multiple (P/E):$104.48
Graham growth formula:$182.23
Earnings power value (EPV):$107.70
Justified P/B:$137.34
Dividend discount (Gordon):$46.09
P/FFO, funds from operations:$174.34
Mid-cycle earnings:$275.96
Revenue multiple:$941.53
Analyst Consensus:Buy (11B / 5H / 0S)
Last Earnings Surprise:+2.92%

Valuation Metrics

P/E Ratio

15.42

ROE

40.9%

P/B Ratio

6.56

P/FCF

18.63

Gross Margin

21.4%

ROIC

14.8%

Profitability Radar

Value Creation (Economic Moat)

ROIC

14.8%

WACC

7.3%

ROIC − WACC

+7.5 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (15)

  • EPS shows upward trend
  • Price CAGR 10.87%
  • ROIC 14.8%
  • P/FCF 18.63
  • Operating Margin 7.1%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 42.6%
  • Analyst Consensus 69% Buy
  • Earnings Quality (OCF/NI) 0.91
  • Share Dilution -2.4%
  • Piotroski F-Score 5/9

Failed (10)

  • Gross Margin 21.4%
  • P/B Ratio 6.56
  • Debt/Equity ratio
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Revenue Growth 5Y 4.0%
  • Earnings Surprise avg 2.1%
  • PEG Ratio 2.06
  • Net Margin Trend 4.6% vs 4.9%

Unavailable (2)

  • Dividend Payout NaN%
  • Interest Coverage

Piotroski F-Score

5/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

0.91

Moderate: some gap between profits and cash

Share Dilution

-2.4%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Ms. Christine A. Leahy J.D.Chair of the Board, President & CEO60
Mr. Albert Joseph Miralles Jr.CFO & Executive VP of Enterprise Business Operations55
Ms. Elizabeth H. ConnellyExecutive VP & Chief Commercial Officer60
Mr. Mukesh KumarExecutive VP and Chief Services & Solutions Officer49
Mr. Peter Richard LocySenior VP, Controller & Chief Accounting Officer45
Mr. Steven J O'BrienVice President of Investor Relations-
Mr. Frederick J. Kulevich J.D.Chief Legal Officer, Executive VP of Risk & Compliance and Corporate Secretary59
Sara GranackVice President of Corporate Communications & Reputation-
Mr. Anand J. RaoSenior VP and Chief Marketing Officer-
Mr. Michael S. Drory J.D.Senior Vice President of Digital, Strategy & Corporate Development-

Audit Risk

1

Board Risk

6

Compensation Risk

6

Shareholder Rights Risk

4

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-20

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-05

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-21

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for CDW, sourced from Markets Gazette.

No recent news for CDW.