Is CDW Corp. overvalued or undervalued?

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. Key ratios include a P/E ratio of 21, an EV to EBITDA of 14.86, and a Price to Book Value of 10.10. In comparison with peers, Block, Inc. has a P/E of 12.44, while Cognizant Technology Solutions Corp. boasts a lower P/E of 13.98, indicating that CDW Corp. is priced higher relative to these competitors.
Despite its fair valuation, CDW Corp. has underperformed against the S&P 500 over multiple periods, with a YTD return of -12.41% compared to the index's 13.30%. This trend is further highlighted by a 1-year return of -31.07% against the S&P 500's 14.08%, suggesting that while the stock is fairly valued, it may face challenges in delivering returns in the near term.