CDW Corp (CDW) Comes Back to Market

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However, on the third hand, free cash flow at CDW Corp (NASDAQ:CDW) is sufficiently strong — in fact, more than twice net earnings — to suggest a price-to-free cash flow ratio of only 11.2.

Foolish takeaway
In short, CDW Corp (NASDAQ:CDW) stock appears today to carry a valuation pretty similar to that of Dell Inc. (NASDAQ:DELL) — and a similar business model as well. Whether it’s a better value than Dell, and deserves your investment, really depends on whether CDW can outgrow the 6% earnings growth pace analysts are expecting from Dell. We don’t know the answer to that question yet … but at least now you know a bit more about the price Mr. Market is asking you to pay.

The article CDW Comes Back to Market originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned.

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