CDW PEG Ratio Analysis

The PEG ratio divides a stock’s price-to-earnings ratio by its expected earnings growth rate, with lower values indicating cheaper valuations for the growth on offer.

At 13.64x, CDW’s PEG is far above the sector median of 0.81x, placing it in the 96th percentile among sector peers — meaning only a handful of competitors carry a higher price relative to their growth. The year-over-year change is not available, but the quarter-over-quarter change shows the PEG rose 284.2% from 3.55x to 13.64x, a steep increase in a single quarter. Because the level is extremely high and the trend is rising sharply, the stock now embeds expectations of either very low earnings growth or a heavy valuation premium, which raises downside risk if growth disappoints. This metric contradicts an outright positive stance and instead reinforces caution, aligning with the overall NEUTRAL verdict by flagging that current pricing leaves limited margin for error.

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