Is CDW Corp. overvalued or undervalued?

Oct 19 2025 11:55 AM IST
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As of October 17, 2025, CDW Corp. is fairly valued with a P/E ratio of 21, but it underperformed significantly over the past year with a return of -31.07%, making it less attractive compared to peers like Block, Inc. and Cognizant Technology Solutions Corp. with lower P/E ratios.
As of 17 October 2025, the valuation grade for CDW Corp. has moved from very expensive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 21, while the EV to EBITDA ratio is 14.86, and the Price to Book Value is 10.10.

In comparison to peers, Block, Inc. has a more attractive P/E of 12.44, and Cognizant Technology Solutions Corp. shows a very attractive P/E of 13.98, indicating that CDW Corp. may not be the most appealing option in its sector. Over the past year, CDW Corp. has underperformed significantly, with a return of -31.07% compared to the S&P 500's 14.08%, reinforcing the notion that the stock may not be a strong buy at this time.
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