CDW Corporation
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$108.72
Market Price
$133.29
Overvalued By
22.6%
Method: 10-year unlevered FCF DCF: $860.2M normalized FCF base (TTM); 6% annual FCF growth yrs 1-5; 4% yrs 6-10; 8% discount rate; 2.5% terminal growth; $6,068.2M net debt ($6,430M debt vs. $361.8M cash); 125.02M shares outstanding.
Reasoning: CDW is a mature, cash-generative IT solutions reseller with a highly leveraged capital structure (a legacy of its LBO/IPO history); modest mid-single-digit growth in line with enterprise IT spending and a market-average discount rate are appropriate given its stable but low-growth, high-debt profile.