Using the PEG framework with analyst consensus forward EPS growth of 17.1% plus 2.1% dividend yield, CDW Corporation has a fair value of $179.52 based on NTM EPS (FY2026) of $10.51. The current PEG ratio is 0.68.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 15.0% |
| Dividend Yield | +2.1% |
| Adjusted Growth (clamped 8–25%) | 17.1% |
| Fair P/E | 17.1x |
| NTM EPS (FY2026) | $10.51 |
| Fair Value | $179.52 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.08 | — | — |
| FY2026E | $10.51 | +30.1% | 8 |
| FY2027E | $11.31 | +7.6% | 8 |
| FY2028E | $12.29 | +8.7% | 4 |
3Y Forward EPS CAGR: 15.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $988.6M | $7.04 | — |
| FY2022 | $1.1B | $8.14 | +15.6% |
| FY2023 | $1.1B | $8.10 | -0.5% |
| FY2024 | $1.1B | $7.97 | -1.6% |
| FY2025 | $1.1B | $8.08 | +1.4% |
4Y Historical EPS CAGR: 3.5%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.