Using the industry peer median P/E multiple (trailing + forward), CDW Corporation (CDW) has a fair value of $137.29 based on 4 comparable companies in the Information Technology Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| CDW CorporationCDW | 16,053 | 15.0x | 12.3x |
| Corpay, Inc.CPAY | 20,612 | 19.6x | 15.5x |
| Leidos Holdings, Inc.LDOS | 19,925 | 14.2x | 15.6x |
| Gartner, Inc.IT | 11,238 | 16.2x | 13.1x |
| GoDaddy Inc.GDDY | 10,994 | 13.1x | 11.7x |
| Industry Median | 15.2x | 14.3x | |
| (*) Profit after tax | 1,067 | 1,307 | |
| Equity Value | 16,170 | 20,101 | |
| (/) Outstanding shares | 132 | 132 | |
| Fair Price | $122 | $152 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.