CDW Corp Valuation
| CDW Stock | USD 236.78 3.23 1.35% |
At this time, the firm appears to be fairly valued. CDW Corp shows a prevailing Real Value of $232.95 per share. The current price of the firm is $236.78. Our model approximates the value of CDW Corp from reviewing the firm fundamentals such as return on equity of 0.61, and Profit Margin of 0.05 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors favor buying undervalued instruments and disposing overvalued instruments since, in the future, asset prices and their ongoing real values will blend. Key fundamental drivers impacting CDW Corp's valuation include:
Price Book 15.9801 | Enterprise Value 37.9 B | Enterprise Value Ebitda 19.4401 | Price Sales 1.5269 | Forward PE 22.9885 |
Fairly Valued
Today
Please note that CDW Corp's price fluctuation is very steady at this time. Calculation of the real value of CDW Corp is based on 3 months time horizon. Increasing CDW Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for CDW Corp is useful when determining the fair value of the CDW stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of CDW Corp. Since CDW Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of CDW Stock. However, CDW Corp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 236.78 | Real 232.95 | Target 222.2 | Hype 236.79 | Naive 226.79 |
The real value of CDW Stock, also known as its intrinsic value, is the underlying worth of CDW Corp Company, which is reflected in its stock price. It is based on CDW Corp's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of CDW Corp's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence CDW Corp's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of CDW Corp helps investors to forecast how CDW stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of CDW Corp more accurately as focusing exclusively on CDW Corp's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use CDW Corp's intrinsic value based on its ongoing forecasts of CDW Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against CDW Corp's closest peers. When choosing an evaluation method for CDW Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
CDW Corp Investments |
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CDW Valuation Trend
Knowing CDW Corp's actual value is paramount for traders to make sound investment determinations. CDW Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of CDW Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both CDW Corp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
CDW Market Cap
CDW Corp is rated fifth in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 222.91 Billion. CDW Corp retains roughly 32.25 Billion in market capitalization claiming about 14% of equities under Information Technology industry.CDW Corp Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining CDW Corp's current stock value. Our valuation model uses many indicators to compare CDW Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across CDW Corp competition to find correlations between indicators driving CDW Corp's intrinsic value. More Info.CDW Corp is rated below average in price to earning category among related companies. It is rated fourth in price to book category among related companies fabricating about 0.65 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for CDW Corp is roughly 1.55 . Price To Book Ratio is likely to climb to 15.73 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value CDW Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CDW Corp's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CDW Corp's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates CDW Corp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in CDW Corp and how it compares across the competition.
About CDW Corp Valuation
The stock valuation mechanism determines the current worth of CDW Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of CDW Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of CDW Corp based exclusively on its fundamental and basic technical indicators. By analyzing CDW Corp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of CDW Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of CDW Corp. We calculate exposure to CDW Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to CDW Corp's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.7 B | 4.9 B | |
| Pretax Profit Margin | 0.07 | 0.04 | |
| Operating Profit Margin | 0.08 | 0.08 | |
| Net Profit Margin | 0.05 | 0.05 | |
| Gross Profit Margin | 0.22 | 0.12 |
8 Steps to conduct CDW Corp's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates CDW Corp's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct CDW Corp's valuation analysis, follow these 8 steps:- Gather financial information: Obtain CDW Corp's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine CDW Corp's revenue streams: Identify CDW Corp's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research CDW Corp's industry and market trends, including the size of the market, growth rate, and competition.
- Establish CDW Corp's growth potential: Evaluate CDW Corp's management, business model, and growth potential.
- Determine CDW Corp's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate CDW Corp's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of CDW Corp represents a small ownership stake in the entity. As a stockholder of CDW, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
CDW Corp Dividends Analysis For Valuation
At this time, CDW Corp's Dividend Yield is fairly stable compared to the past year. Dividend Payout Ratio is likely to climb to 0.31 in 2024, despite the fact that Dividends Paid is likely to grow to (305.4 M). . Price Earnings Ratio is likely to climb to 28.45 in 2024, despite the fact that Retained Earnings are likely to grow to (1.4 B).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -321.5 M | -305.4 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.29 | 0.31 | |
| Dividend Paid And Capex Coverage Ratio | 9.23 | 9.69 |
There are various types of dividends CDW Corp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of CDW shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from CDW Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When CDW pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of CDW Corp by the value of the dividends paid out.
CDW Corp Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as CDW Corp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 136.3 M | |
| Quarterly Earnings Growth Y O Y | 0.045 | |
| Forward Price Earnings | 22.9885 |
CDW Corp Current Valuation Indicators
Valuation refers to the process of determining the present value of CDW Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value CDW we look at many different elements of the entity such as CDW's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. CDW Corp's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final CDW Corp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as CDW Corp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use CDW Corp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes CDW Corp's worth.When determining whether CDW Corp is a strong investment it is important to analyze CDW Corp's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CDW Corp's future performance. For an informed investment choice regarding CDW Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CDW Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment. For more information on how to buy CDW Stock please use our How to Invest in CDW Corp guide.Note that the CDW Corp information on this page should be used as a complementary analysis to other CDW Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Complementary Tools for CDW Stock analysis
When running CDW Corp's price analysis, check to measure CDW Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CDW Corp is operating at the current time. Most of CDW Corp's value examination focuses on studying past and present price action to predict the probability of CDW Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CDW Corp's price. Additionally, you may evaluate how the addition of CDW Corp to your portfolios can decrease your overall portfolio volatility.
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Is CDW Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CDW Corp. If investors know CDW will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CDW Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.045 | Dividend Share 2.39 | Earnings Share 8.11 | Revenue Per Share 158.811 | Quarterly Revenue Growth (0.08) |
The market value of CDW Corp is measured differently than its book value, which is the value of CDW that is recorded on the company's balance sheet. Investors also form their own opinion of CDW Corp's value that differs from its market value or its book value, called intrinsic value, which is CDW Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CDW Corp's market value can be influenced by many factors that don't directly affect CDW Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CDW Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if CDW Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CDW Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.