CDW — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($124.77)
DCF	$112.35	-10.0%
Graham Number	$61.03	-51.1%
Reverse DCF	—	implied g: 10.1%
DDM	$51.91	-58.4%
EV/EBITDA	$123.62	-0.9%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $920.35M

Near-term growth (yrs 1–5)(%)Rev: 6.3% / EPS: 8.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.32%

Computed WACC: 7.32%

Cost of equity (Re)10.08%(Rf 4.30% + β 1.05 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)72.60%

Debt weight (D/V)27.40%

Results

Intrinsic Value / share$169.29

Current Price$124.77

Upside / Downside+35.7%

Net Debt (used)$5.55B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	0.8%	4.8%	8.8%	12.8%	16.8%
7.0%	$117.01	$148.51	$184.98	$227.03	$275.25
8.0%	$87.61	$112.84	$142.02	$175.62	$214.12
9.0%	$67.28	$88.19	$112.35	$140.13	$171.94
10.0%	$52.40	$70.16	$90.65	$114.19	$141.12
11.0%	$41.03	$56.40	$74.11	$94.43	$117.64

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $8.22

Book Value / share($)Yahoo: $20.14

Results

Graham Number$61.03

Current Price$124.77

Margin of Safety-51.1%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.32%

Terminal growth rate(%)

Computed WACC: 7.32%

Cost of equity (Re)10.08%(Rf 4.30% + β 1.05 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)72.60%

Debt weight (D/V)27.40%

Results

Current Price$124.77

Implied Near-term FCF Growth5.0%

Historical Revenue Growth6.3%

Historical Earnings Growth8.8%

Base FCF (TTM)$920.35M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $2.52

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$51.91

Current Price$124.77

Upside / Downside-58.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.97B

Target EV/EBITDA multipleCurrent: 11.0×

Net Debt($B)Default: $5.55B

Results

Implied Equity Value / share$123.62

Current Price$124.77

Upside / Downside-0.9%

Implied EV$21.65B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$3.55B	$4.55B	$5.55B	$6.55B	$7.55B
7.0x	$78.54	$70.86	$63.18	$55.50	$47.82
9.0x	$108.76	$101.08	$93.40	$85.72	$78.04
11.0x	$138.98	$131.30	$123.62	$115.94	$108.26
13.0x	$169.21	$161.53	$153.85	$146.16	$138.48
15.0x	$199.43	$191.75	$184.07	$176.39	$168.71

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