IT solutions distributor — DCF P(above)=83.1% with FV=$187. Enterprise IT spending correlated with IT budget cycle; CDW has strong SMB and govt exposure. But target was $155 and model says FV $187 — neutral on current execution. No clear catalyst. Upgrade from 5 to 6: DCF support warrants neutral, not lean avoid.
Fair Value Distribution — percentile bands
100.0% of simulations place fair value above current price
WHAT IS PRICED IN
Revenue-Based Reverse DCF
-8.0%/yr
±2.5% · revenue growth to justify current price
FCF-Based Reverse DCF
8.0%/yr
±2.8% · FCF growth to justify current price
THE GAP
Market pricing margin compression or rising capex
KEY VALUE DRIVERS
Spearman correlation — what moves this valuation most
Eagle will generate this view by the next trading session (~7h).
Eagle will generate this view by the next trading session (~7h).
CDW: 6.8% growth offset by margin compression and operational deleveraging. OI flat despite topline expansion. Hardware mix pressure and elevated transformation costs driving margin headwinds. Small b...