Workday, Inc. (WDAY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-38.9%

$123.55

vs $202.21 price

Levered DCF

$162.62

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.94

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	67.55×	132.35×	55.13×	-125.99×	2,108.42×	-198.9×	-87.09×	-94.06×
P/B	5.88×	7.69×	9.41×	8.27×	13.79×	17.11×	16.84×	20.09×
P/S	4.8×	8.23×	10.48×	7.43×	12.17×	12.99×	11.54×	13.94×
EV / EBITDA	35.55×	66.17×	102.86×	230.93×	167.44×	652.18×	-289.53×	-241.31×
Gross margin	75.7%	75.5%	75.6%	72.5%	72.2%	72.3%	70.6%	70.4%
Operating margin	10.7%	4.9%	2.5%	-3.6%	-2.3%	-5.8%	-13.8%	-16.4%
Net margin	7.3%	6.2%	19.0%	-5.9%	0.6%	-6.5%	-13.3%	-14.8%
Current ratio	1.32×	1.85×	1.92×	1.71×	1×	1.09×	1.01×	1.08×
Debt / equity	0.49×	0.37×	0.41×	0.58×	0.46×	0.68×	0.63×	0.62×
Interest coverage	8.98×	3.64×	1.61×	-2.18×	-6.82×	-3.61×	-8.56×	-7.69×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	8.9%	5.8%	17.1%	-6.6%	0.6%	-8.6%	-19.3%	-21.4%
Return on invested capital	5.9%	2.7%	1.6%	-2.5%	-1.7%	-4.4%	-12.0%	-13.8%
Return on assets	3.8%	2.9%	8.4%	-2.7%	0.3%	-3.2%	-7.1%	-7.6%
Free cash flow yield	6.1%	3.1%	2.5%	2.8%	2.2%	1.8%	1.5%	1.0%
Earnings yield	1.5%	0.8%	1.8%	-0.8%	0.0%	-0.5%	-1.1%	-1.1%
Enterprise value	$48.2B	$71.3B	$77.4B	$47.6B	$63.1B	$57B	$42.7B	$39.9B
Net debt / EBITDA	1.71×	1.69×	1.71×	6.62×	1.51×	9.78×	-5.69×	-3.42×
Cash conversion cycle (days)	67	68	66	59	74	64	69	78