CDW Corporation

Methodology

CDW's IT product distribution and services to businesses, government, and healthcare creates steady demand with recurring customer relationships. The company's value-added services and solutions expertise provide differentiation beyond commodity hardware distribution. This fair value calculation works reasonably for CDW given consistent execution and market share gains, though corporate IT spending cycles and vendor dynamics can impact margins and growth rates.

Methodology

CDW's PEG ratio typically ranges from 1.5-2.5, reflecting solid valuations for an IT distributor with modest but steady growth from market share gains and services attachment. The company's customer relationships and solutions capabilities justify premium multiples to pure-play distributors. Compare to other IT resellers and service providers to assess whether CDW's scale and execution track record warrant its valuation positioning.

Methodology

CDW's dividend yield (around 1.0-1.5%) is modest as the company prioritizes growth investments and maintaining financial flexibility. The IT distributor balances capital allocation between modest dividends, opportunistic buybacks, and working capital for business growth. PEGY provides some additional context for CDW investors, though for a distribution business, operating margin trends and return on invested capital matter more than dividend-adjusted multiples.