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CDW Corp – Business to Business Electronic Markets
people who get it in every organization, there are people who get technology. and people who don't. this is where cdw comes in. cdw is a leading provider of technology solutions for business, government, education and healthcare in the us and canada. we're a 6,000-plus-member team.
Analysis Results
Intrinsic Value $631.89
Latest Price $211.32
Relative Value 67% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.86 1.78
2024 2.12 1.95
2025 2.41 2.14
2026 2.75 2.34
2027 3.14 2.56
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 94.2 billion. This corresponds to a present value of 73.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.8 billion. Adding in the terminal value gives a total present value of 84.6 billion.

There are presently 134.0 million outstanding shares, so the intrinsic value per share is 631.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,564,000,000
Current Cash 315,200,000
Current Liabilities 4,947,100,000
Current Debt 56,300,000
Non-Cash Working Capital (NCWC) 1,358,000,000
Change in NCWC 131,300,000
EBIT 1,735,200,000
Tax Provision 373,300,000
Depreciation and Amortization 290,600,000
Capital Expenditure -127,800,000
Unlevered Free Cash Flow 1,593,925,514
Current Assets 6,478,100,000
Current Cash 258,100,000
Current Liabilities 5,096,000,000
Current Debt 102,700,000
Non-Cash Working Capital (NCWC) 1,226,700,000
Change in NCWC 510,800,000
EBIT 1,419,000,000
Tax Provision 309,200,000
Depreciation and Amortization 191,200,000
Capital Expenditure -100,000,000
Unlevered Free Cash Flow 1,682,924,179
Current Assets 5,953,500,000
Current Cash 1,410,200,000
Current Liabilities 3,898,300,000
Current Debt 70,900,000
Non-Cash Working Capital (NCWC) 715,900,000
Change in NCWC -6,900,000
EBIT 1,179,200,000
Tax Provision 213,800,000
Depreciation and Amortization 425,600,000
Capital Expenditure -158,000,000
Unlevered Free Cash Flow 1,188,365,569
Current Assets 4,334,100,000
Current Cash 154,000,000
Current Liabilities 3,491,400,000
Current Debt 34,100,000
Non-Cash Working Capital (NCWC) 722,800,000
Change in NCWC -90,400,000
EBIT 1,133,600,000
Tax Provision 212,900,000
Depreciation and Amortization 267,100,000
Capital Expenditure -236,300,000
Unlevered Free Cash Flow 819,874,023
Current Assets 3,796,800,000
Current Cash 205,800,000
Current Liabilities 2,803,100,000
Current Debt 25,300,000
Non-Cash Working Capital (NCWC) 813,200,000
Change in NCWC 68,400,000
EBIT 987,300,000
Tax Provision 197,500,000
Depreciation and Amortization 265,600,000
Capital Expenditure -86,100,000
Unlevered Free Cash Flow 1,003,205,056
Current Assets 3,378,100,000
Current Cash 144,200,000
Current Liabilities 2,514,600,000
Current Debt 25,500,000
Non-Cash Working Capital (NCWC) 744,800,000
Change in NCWC 32,600,000
EBIT 866,100,000
Tax Provision 137,300,000
Depreciation and Amortization 260,900,000
Capital Expenditure -81,100,000
Unlevered Free Cash Flow 898,406,815
Current Assets 3,238,100,000
Current Cash 263,700,000
Current Liabilities 2,280,700,000
Current Debt 18,500,000
Non-Cash Working Capital (NCWC) 712,200,000
Change in NCWC -180,900,000
EBIT 819,200,000
Tax Provision 248,000,000
Depreciation and Amortization 254,500,000
Capital Expenditure -63,500,000
Unlevered Free Cash Flow 527,156,038
Current Assets 2,790,800,000
Current Cash 37,600,000
Current Liabilities 1,887,300,000
Current Debt 27,200,000
Non-Cash Working Capital (NCWC) 893,100,000
Change in NCWC 236,800,000
EBIT 742,000,000
Tax Provision 243,900,000
Depreciation and Amortization 227,400,000
Capital Expenditure -90,100,000
Unlevered Free Cash Flow 836,387,789
Current Assets 2,453,400,000
Current Cash 344,500,000
Current Liabilities 1,468,000,000
Current Debt 15,400,000
Non-Cash Working Capital (NCWC) 656,300,000
Change in NCWC -11,900,000
EBIT 673,000,000
Tax Provision 142,800,000
Depreciation and Amortization 207,900,000
Capital Expenditure -55,000,000
Unlevered Free Cash Flow 566,116,584
Current Assets 2,213,500,000
Current Cash 188,100,000
Current Liabilities 1,402,600,000
Current Debt 45,400,000
Non-Cash Working Capital (NCWC) 668,200,000
Change in NCWC -400,000
EBIT 508,600,000
Tax Provision 62,700,000
Depreciation and Amortization 208,200,000
Capital Expenditure -47,100,000
Unlevered Free Cash Flow 506,183,785
Current Assets 1,814,800,000
Current Cash 37,900,000
Current Liabilities 1,148,300,000
Current Debt 40,000,000
Non-Cash Working Capital (NCWC) 668,600,000
Change in NCWC 29,400,000
EBIT 510,600,000
Tax Provision 67,100,000
Depreciation and Amortization 210,200,000
Capital Expenditure -41,400,000
Unlevered Free Cash Flow 524,698,656

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