CDK Global Stock Price and Value Analysis

Should you buy CDK Global stock? (NasdaqGS:CDK). Let's see how it does in our automated value investing analysis system.

CDK Free Cash Flow Trend

Free Cash Flow trendline for CDK
Free Cash Flow trendline for CDK Global

Based on historical returns, we believe that CDK Global can grow its free cash at a rate of about 3%. That's positive!

AdvantagesDisadvantages
  • This company has stable growth.
  • This company is less known than others.
  • This stock looks overpriced.
  • This company has a low dividend yield.
  • This company is making money at a modest rate.

Inside the CDK Numbers

CDK Price
(CDK Global stock price per share)
$51.71
[?] CDK Fair Price
(based on intrinsic value)
$-3.00
[?] CDK Safety Price (based on a variable margin of safety) $-1.80
[?] PE Ratio versus Sector 68% higher than other Technology stocks
[?] PE Ratio versus Industry 62% higher than other Unknown stocks
[?] Free Cash Flow Jitter 20%
[?] Dividend Yield 1%
Shares Shorted 1,979,735

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 1,979,735 shares shorted. With 121,250,536 shares available for purchase and an average trading volume over the past 10 trading days of 769,042, it would take at least 2.574 days for all of the short holders to cover their shorts.

Is CDK Global Stock on Sale?

We believe that CDK Global may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

CDK Global looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy CDK Stock?

Does CDK Global have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.