A Look At CDW (CDW) Valuation After Recent Share Price Weakness
Recent share performance and what it might mean for CDW
With CDW (CDW) shares down over the past day, week, month, and past 3 months, some investors are revisiting how the company’s current valuation lines up with its recent financial profile.
See our latest analysis for CDW.
Looking beyond the recent weakness, CDW’s latest share price of US$124.29 sits against a year to date share price return of 6.66% decline and a 1 year total shareholder return of 35.13% decline. This suggests sentiment has cooled compared to previous years as investors reassess growth prospects and risk.
If this pullback has you thinking about where capital might work harder elsewhere, it could be a good time to scan our screener of 22 top founder-led companies and see what stands out to you.
So with CDW trading at US$124.29, sitting on recent share price and total return declines but showing positive annual revenue and net income growth, is the market overlooking value here, or already pricing in the company’s future growth?
Most Popular Narrative: 31.2% Undervalued
CDW's most followed narrative puts fair value at US$180.60, well above the last close at US$124.29, so the gap between price and that fair value rests on some clear business assumptions.
Expansion of CDW's software, professional, and managed services capabilities, now core to both strategy and recent M&A focus, continues to elevate recurring revenue and expand margins, supporting resilient long-term earnings growth.
Want to see what sits underneath that services story? The narrative leans on steady revenue lifts, firmer margins, and a richer earnings profile. Curious how those ingredients translate into US$180.60 as a fair value instead of today’s price? The full breakdown joins those threads together.
Result: Fair Value of US$180.60 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, softer recent revenue guidance and an uncertain spending backdrop, including pressure on federal and education budgets, could slow progress toward that higher-margin services mix.
Find out about the key risks to this CDW narrative.
Next Steps
With both risks and rewards in view, how does this story sit with you right now? If you want to move quickly and firm up your own stance, take a close look at the 5 key rewards and 2 important warning signs that sit behind this narrative and decide what matters most for your portfolio.
Looking for more investment ideas?
If this CDW story sparks questions about where else your money could work, do not stop here. Broaden your watchlist and see what alternatives stand out.
- Spot potential value by scanning our list of 53 high quality undervalued stocks that pair quality fundamentals with prices that may not fully reflect them yet.
- Secure steadier income streams by checking out 13 dividend fortresses, focusing on companies with higher yields that some income focused investors keep on their radar.
- Prioritise resilience by reviewing our 80 resilient stocks with low risk scores, highlighting businesses with characteristics that may suit more defensive portfolios.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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