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Is this Large Market Cap Stock target price reasonable for CDW Corporation (NASDAQ:CDW)?

The company in question is, CDW Corporation (NASDAQ:CDW) currently with a stock price of 44.44 (-0.51% today). The market cap for CDW Corporation is 7359.83, and is in the sector Technology, and Information Technology Services industry. The target price for CDW Corporation is 48. Currently CDW Corporation is trading with a P/E of 17.37, and a forward P/E of 12.28. Average volume for CDW Corporation is 923.83 and so far today it is 210621.

Performance in the last year for CDW Corporation has been 4.09%. For EPS growth, CDW Corporation has seen a growth of 65.60%, and is looking to grow in the next year to 9.51%. More long term stats show that EPS growth has been 73.10% over the last five years and could be 8.95% for the next five years. CDW Corporation has seen sales growth quarter over quarter at 10.60%, with EPS growth quarter over quarter at 12.40%. The 20-day simple moving average is -1.36%, with the 200-day simple moving average coming to 7.07%.

Since the IPO date for CDW Corporation on the 6/27/2013, CDW Corporation has seen performance year to date to be 7.08%. With CDW Corporation trading at 44.44, the dividend yield is 0.96%, and the EPS is 2.57.

So could CDW Corporation, be undervalued? Well as said before P/E is 17.37. The PEG is 1.94, P/S is 0.54 and the P/B is at 7.26. The P/cash is 56.88, with P/free cash flow at 22.09.

CDW Corporation ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 1.2. This is with long term debt/equity at 3.17, and total debt/equity at 3.2.

In terms of margins, CDW Corporation has a gross margin of 16.50%, an operating margin of 5.60% and a profit margin of 3.20%.Payout ratio for CDW Corporation is 15.00%. Return on assets come to 6.40% with return on investment coming to 10.90%.

Insider ownership for CDW Corporation, is at 16.50% and institutional ownership comes to 98.70%. Outstanding shares are at 164.76. While shares float is 160.62. The float short is currently 3.43%, and short ratio is 5.97.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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