Is CDW Corp. overvalued or undervalued?

As of 30 October 2024, CDW Corp. has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its metrics, with a P/E ratio of 21, a Price to Book Value of 10.10, and an EV to EBITDA of 14.86. In comparison to its peers, Cisco Systems has a P/E of 24.57 and Accenture Plc has a P/E of 26.54, indicating that CDW Corp. is positioned reasonably within its industry.
Despite its fair valuation, CDW Corp. has shown weaker performance relative to the S&P 500 over the past year, with a stock return of -26.21% compared to the index's 10.26%. This underperformance, combined with a high PEG ratio of 21.39, suggests that while the company is not overvalued, it may face challenges in justifying its current price in the near term.