Western Digital Corporation (WDC) 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

-91.9%

$28.11

vs $347.69 price

Levered DCF

$10.06

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

20.25

Safe zone

Rating

A-

Overall 4 / 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	20.02×	11.92×	-21.93×	-5.34×	6.82×	19.72×	-38.18×	-14.54×
P/B	20.98×	4.14×	1.73×	0.83×	0.84×	1.51×	1×	1.1×
P/S	14.39×	2.31×	2.95×	1.46×	0.54×	0.96×	0.57×	0.66×
EV / EBITDA	37.07×	10.08×	54.21×	1,556.49×	4.33×	9.28×	8.32×	8.86×
Gross margin	48.9%	38.8%	28.1%	22.2%	32.3%	26.3%	22.6%	22.6%
Operating margin	34.5%	24.5%	-6.4%	-8.8%	12.7%	7.2%	2.0%	0.5%
Net margin	72.9%	19.8%	-12.6%	-26.9%	8.2%	4.9%	-1.5%	-4.6%
Current ratio	1.33×	1.08×	1.32×	1.45×	1.81×	2×	2.05×	2.22×
Debt / equity	0.12×	0.96×	0.72×	0.77×	0.62×	0.81×	1×	1.06×
Interest coverage	32.04×	6.54×	-0.97×	-1.77×	7.87×	3.74×	0.81×	0.19×
Dividend yield	0.1%	0.2%	0.0%	0.0%	0.0%	0.0%	6.2%	5.3%
Payout ratio	2.0%	2.3%	0.0%	0.0%	0.0%	0.0%	-238.0%	-77.5%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	106.3%	35.6%	-7.4%	-15.4%	12.7%	7.7%	-2.6%	-7.6%
Return on invested capital	39.7%	21.5%	-2.0%	-2.7%	8.1%	5.0%	1.6%	0.4%
Return on assets	68.0%	13.5%	-3.3%	-6.9%	5.9%	3.1%	-1.0%	-2.9%
Free cash flow yield	1.9%	5.8%	-4.2%	-13.3%	7.6%	5.5%	1.9%	7.2%
Earnings yield	5.1%	8.6%	-4.3%	-18.5%	15.1%	5.1%	-2.6%	-6.9%
Enterprise value	$185.4B	$24.9B	$24.9B	$15.6B	$15.5B	$21.5B	$16.1B	$18B
Net debt / EBITDA	-0.11×	1.2×	13.64×	645.1×	1.47×	2.31×	3.37×	3.47×
Cash conversion cycle (days)	43	59	98	252	95	86	72	66