CDW Corp (CDW) is undervalued and International Business Machines Corp (IBM) is fairly valued.
Against our estimates of intrinsic value, CDW trades at the wider discount: a margin of safety of +31%, against -5% for IBM.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.4% (average of 3 methods) values the shares at $214.88; the price of $147.43 is 31% below that value, and 75% of that value comes from beyond year five.
Leak Score 80/100 on 10 of 12 signals
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $220.67; the price of $231.38 is 5% above that value, and 78% of that value comes from beyond year five.
Leak Score 65/100 on 9 of 12 signals
| Metric | CDW | IBM |
|---|---|---|
| Verdict | Undervalued | Fairly valued |
| Price | $147.43 | $231.38 |
| Intrinsic value | $214.88 | $220.67 |
| Margin of safety | +31% | -5% |
| Leak Score | 80/100 (10/12) | 65/100 (9/12) |
| Market cap | $18.4B | $218.0B |
| Revenue growth, 5 years | 4.0% | 4.1% |
| Operating margin | 7.2% | 20.9% |
| Net margin | 4.6% | 15.5% |
| Return on equity | 44.0% | 34.5% |
| Debt to equity | 2.63 | 1.89 |
| P/E | 17.7x | 20.5x |
| Forward P/E | 12.3x | 17.6x |
| P/B | 7.6x | 6.3x |
| Dividend yield | 1.7% | 2.9% |