CDW Analysis — TradeApes

CDW Corp (CDW)

Consumer Cyclical

$126.19 close · Apr 09, 2026

≈ Fairly Valued (49/100)

📈

Multiple compressed z = -2.22

EV/EBITDA (11.1×) is 2.22 std deviations below its 2-year average

Apr 09

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 60

Operating Trend 55

Valuation 55

Capital Allocation 55

Risk 80

Positives

↑ Free cash flow positive — business generates real spendable cash +2.5

↑ Decent ROIC — 10–20%, solid return on invested capital +1.3

↑ Decent FCF yield — 4–7%, reasonable cash return on price paid +1.3

Concerns

Signal contribution: +5.9 from strengths

Health Score Trend 8 snapshots

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	22.42B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	4.87B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	1.66B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	1.07B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	1.09B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	1.95B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	5.66B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	618.7M

Valuation

Market Cap	16.67B
Enterprise Value	21.71B
EV / Revenue	1.0x
EV / EBITDA	11.1x
P/E (TTM)	15.6x
Forward P/E (extrapolated)	9.0x
PEG	0.2x
P/FCF	15.3x
FCF Yield	6.5%

DCF Fair Value Range (base CAGR: 15.6%)

Bear

$132.56

Base

$223.66

Bull

$358.07

Bear $133 Current $126.19 (below range) Bull $358

Market is pricing in 7.1% FCF growth annually — base model assumes 15.6%

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	21.7%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	8.7%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	4.8%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	4.9%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	41.8%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	31.1%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	6 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	—

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Quarterly Financials

Metric	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '24	Q2 '24	Q1 '24
Revenue ?Total quarterly sales from primary business operations.	5.51B	5.74B	5.98B	5.20B	—	5.52B	5.42B	4.87B	—	5.63B	5.63B	5.10B
Gross Profit ?Quarterly revenue minus cost of goods sold.	1.25B	1.26B	1.24B	1.12B	—	1.20B	1.18B	1.06B	—	1.23B	1.18B	1.09B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	430.7M	443.3M	420.2M	361.4M	—	481.6M	433.1M	328.0M	—	478.4M	412.2M	355.3M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	279.5M	291.0M	271.2M	224.9M	—	316.4M	281.1M	216.1M	—	315.5M	262.6M	230.1M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	827.8M	—	—	260.3M	—	—	—	410.5M	—	—	—	333.7M

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.