CDW Corporation (CDW) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Information Technology Services
Is CDW Corporation a safe investment right now?
CDW Corporation's Altman Z-Score of 2.55 places it in the gray zone. Our fair value estimate is $135.90 (Fairly Valued). Moat rating: 3.4/5 stars.
Could CDW Corporation go bankrupt? Altman Z-Score analysis
Z-Score of 2.55 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives CDW's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0795 | 1.2 | 0.1 |
| B · Retained Earnings / Total Assets | RE / TA | -0.0795 | 1.4 | -0.11 |
| C · EBIT / Total Assets | EBIT / TA | 0.1032 | 3.3 | 0.34 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.3689 | 0.6 | 0.82 |
| E · Revenue / Total Assets | Rev / TA | 1.399 | 1.0 | 1.4 |
How has CDW's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 3.16 | Safe |
| 2023 | 2.96 | Gray |
| 2024 | 2.72 | Gray |
| 2025 | 2.55 | Gray |
Source: Calculated from CDW's latest 10-K filing on SEC EDGAR.
What is CDW Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $9.06 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $8.08 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $10.54 | 10 analysts consensus |
| Trailing P/E | 17.6x | Current market pricing |
| Fair P/E (β discount) | 15.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $166.20 (10 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does CDW Corporation have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up CDW's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is CDW's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 22.9% | — |
| 2023 | 21.8% | Declining |
| 2024 | 20.1% | Declining |
| 2025 | 20.1% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is CDW Corporation's dividend safe?
Can CDW Corporation afford its dividend?
Payout ratio is 31.0%. FCF covers the dividend 4.3x. 14 consecutive years of payments.
CDW Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $22.4B | $21.0B | $23.7B | Declining |
| Net Income | $1.1B | $1.1B | $1.1B | Stable |
| Free Cash Flow | $1.1B | $1.2B | $1.2B | Declining |
| Gross Margin | 21.7% | 21.9% | 19.7% | Rising |
Recent events that affect our CDW analysis
CDW earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.28. Revenue estimate: $5.48B. Our current Fair Value: $135.90 — a significant beat or miss could shift this estimate.
CDW analyst consensus: 55% bullish (6 of 11 analysts)
0 Strong Buy, 6 Buy, 5 Hold, 0 Sell, 0 Strong Sell. Consensus target: $166.20 (16.7% upside). Compare with our independent Fair Value: $135.90.
CDW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CDW paid $0.6300/share dividend
Dividend Safety Grade: A. Payout ratio: 31.0%.
CDW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
CDW beat EPS estimates by 5.1%
Reported EPS: $2.57 vs estimate $2.44. Earnings strength supports our Fair Value of $135.90 (4.6% below current price).
CDW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CDW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CDW paid $0.6300/share dividend
Dividend Safety Grade: A. Payout ratio: 31.0%.
CDW beat EPS estimates by 3.4%
Reported EPS: $2.71 vs estimate $2.62. Earnings strength supports our Fair Value of $135.90 (4.6% below current price).
CDW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CDW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CDW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CDW paid $0.6250/share dividend
Dividend Safety Grade: A. Payout ratio: 31.0%.
CDW beat EPS estimates by 4.4%
Reported EPS: $2.60 vs estimate $2.49. Earnings strength supports our Fair Value of $135.90 (4.6% below current price).
CDW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CDW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CDW paid $0.6250/share dividend
Dividend Safety Grade: A. Payout ratio: 31.0%.
CDW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CDW beat EPS estimates by 5.4%
Reported EPS: $1.69 vs estimate $1.60. Earnings strength supports our Fair Value of $135.90 (4.6% below current price).
CDW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CDW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CDW paid $0.6250/share dividend
Dividend Safety Grade: A. Payout ratio: 31.0%.
CDW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
CDW beat EPS estimates by 6.7%
Reported EPS: $2.48 vs estimate $2.32. Earnings strength supports our Fair Value of $135.90 (4.6% below current price).
CDW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about CDW Corporation
What is CDW Corporation stock price today?
CDW Corporation (CDW) stock price is $142.44 as of the latest market close, traded on the NASDAQ exchange.
What does CDW Corporation do?
CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Commercial, Government, and Education. It offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.
What is CDW Corporation market cap?
CDW Corporation has a market capitalization of $18.37B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is CDW in?
CDW Corporation operates in the Technology sector, specifically within the Information Technology Services industry. It trades on the NASDAQ under the ticker symbol CDW.
Is CDW stock overvalued or undervalued?
Based on our valuation model, CDW Corporation trades 4.8% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $135.90
- Current Price: $142.44
- Valuation Zone: Fairly Valued
What is CDW stock forecast and analyst target price?
Based on 10 Wall Street analysts, the consensus price target for CDW Corporation is $166.20, implying upside of 16.7% from the current price.
- Analyst High Target: $195.00
- Analyst Low Target: $142.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is CDW Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for CDW Corporation:
- Revenue growth (current year est.): 3.2%
- EPS growth (current year est.): 5.1%
- Revenue growth (next year est.): 3.8%
- EPS growth (next year est.): 7.6%
What are CDW Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $22.4B | Declining |
| Net Income | $1.1B | Stable |
| Free Cash Flow | $1.1B | Declining |
| Gross Margin | 21.7% | Rising |
What is CDW's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 17.6x
- Forward P/E (next 12 months est.): 12.6x
- FairValueLabs Fair P/E: 15.0x
How volatile is CDW stock?
CDW Corporation has a beta of 1.02, meaning it is roughly in line with overall market volatility. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does CDW Corporation have?
CDW Corporation's balance sheet shows:
- Total Cash: $618.7M
- Total Debt: $6.17B
- Net Cash Position: $-5.55B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is CDW Corporation's free cash flow?
CDW Corporation generated $920.4M in trailing twelve-month free cash flow (from $1.21B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does CDW Corporation pay a dividend, and is it safe?
Yes, CDW Corporation pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.8%
- Payout Ratio: 31.0%
- Consecutive Years Paid: 14
- 5-Year Dividend Growth: -18.0%
- FairValueLabs Safety Grade: A
Is CDW Corporation at risk of going bankrupt?
CDW Corporation's Altman Z-Score is 2.55, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does CDW Corporation have a durable competitive advantage?
CDW Corporation scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is CDW's return on equity (ROE)?
CDW Corporation's return on equity is 43.0%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy CDW stock?
CDW shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol CDW
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is CDW a value stock or speculative?
FairValueLabs classifies CDW Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of CDW Corporation?
The current CEO of CDW Corporation is Ms. Christine A. Leahy J.D..
What is CDW's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $8.08
- Forward EPS (next 12 months est.): $11.33
- Analyst consensus EPS (this year): $10.54
- Analyst consensus EPS (next year): $11.33
Other Technology companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
CDW analysis methodology: How we calculate fair value, Z-Scores, and moat ratings