CDW Corporation — Information Technology Services. Scored on the same transparent 7-signal model behind the daily rankings.
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CDW
CDW Corporation · Information Technology Services
FCF$1.1bC+
Rev+7.4%B
D/E2.41D
P/E17.6xA-
PEG1.33B
70.4Score
$144.39$18.4B
1Y Target$145.11Analyst consensus · 9 analysts
5Y Target$212.46Compound horizon
10Y Target$315.17Long-dated conviction
FCF$1.1bTTMC+
FCF $1.1b — respectable but not differentiating
Rev+7.4%TTM YoYB
Revenue +7.4% — at or above S&P median
D/E2.41D
D/E 2.41 — most levered decile in Technology (≈95th pctile)
P/E17.6xA-
P/E 17.6 — cheaper than most Technology peers (≈25th pctile)
PEG1.33B
PEG 1.33 — acceptable premium for growth
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 70.4
Quality0.73
Growth0.69
Value0.69
Why this score
Buying back stock
Durable high returns
Entry · Margin of safety
52-week rangeMid-range
21% off the 12-month high
vs DCF fair value2% belowest. fair value ~$147
What the price assumes: free cash flow compounding at ~6% a year for the next decade — vs the ~9% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability30% · B+gross profit ÷ total assets (Novy-Marx)
ROIC16.1% · A-return on invested capital — not score-weighted
Why now
Information Technology Services · market cap $18.4b. Down 21% from 52-week high of $183.66 — deep drawdown territory. 9 sell-side analysts publish a mean 1-yr target of $145.11 (implying +0% upside).
Moat
ROE 42% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 100% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
D/E 2.41 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Net margin 4.7% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Horizon
1-3 yr $145.11 (9-analyst consensus) — fundamentals + valuation re-rating. 5 yr $212.46 at ~8% CAGR — compounding case rests on the competitive position widening. 10 yr $315.17 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · CDW
Trend
+0.5 over 15 daily scores
From 69.9 (Jun 22) → 70.4 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · CDW
$
%
%
Shares to buy
13
Position size
$1,877
3.8% of portfolio
Stop price
$108.29
25% below $144.39
$ at risk if stopped
$469.27
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
CDW Corporation (CDW): score, valuation & FAQ
CDW Corporation (CDW) is a Information Technology Services company that scores 70.4 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (A-), while D/E (D) rate weaker. On valuation, CDW sits close to our DCF fair-value estimate (within a few percent) — the current price implies roughly 6% annual free-cash-flow growth over the next decade.
Is CDW a good stock to buy?
Bull Rankings scores CDW 70.4 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A-). A score is a quantitative screen of CDW Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does CDW score 70.4 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). CDW earns its highest marks on P/E (A-), and is held back by D/E (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is CDW overvalued or undervalued?
Based on $144.39, CDW sits close to our DCF fair-value estimate (within a few percent) — the current price implies roughly 6% annual free-cash-flow growth over the next decade. It trades at a 17.6x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in CDW?
D/E 2.41 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Net margin 4.7% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.