Workday, Inc.

DB:W7D Stock Report

Market Cap: €69.6b

Workday Valuation

Is W7D undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of W7D when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: W7D (€261.95) is trading below our estimate of fair value (€410.95)

Significantly Below Fair Value: W7D is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for W7D?

Key metric: As W7D is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for W7D. This is calculated by dividing W7D's market cap by their current earnings.
What is W7D's PE Ratio?
PE Ratio44.8x
EarningsUS$1.62b
Market CapUS$72.63b

Price to Earnings Ratio vs Peers

How does W7D's PE Ratio compare to its peers?

The above table shows the PE ratio for W7D vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average53.7x
SAP SAP
100.3x41.4%€275.4b
NEM Nemetschek
63x18.5%€10.8b
AOF ATOSS Software
39.6x7.7%€1.7b
TMV TeamViewer
11.9x10.7%€1.4b
W7D Workday
44.8x10.6%€72.6b

Price-To-Earnings vs Peers: W7D is good value based on its Price-To-Earnings Ratio (44.8x) compared to the peer average (53.7x).

Price to Earnings Ratio vs Industry

How does W7D's PE Ratio compare vs other companies in the European Software Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
W7D 44.8xIndustry Avg. 26.2xNo. of Companies18PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: W7D is expensive based on its Price-To-Earnings Ratio (44.8x) compared to the European Software industry average (26.2x).

Price to Earnings Ratio vs Fair Ratio

What is W7D's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

W7D PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio44.8x
Fair PE Ratio37.9x

Price-To-Earnings vs Fair Ratio: W7D is expensive based on its Price-To-Earnings Ratio (44.8x) compared to the estimated Fair Price-To-Earnings Ratio (37.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst W7D forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€261.95
€282.04
+7.7%
9.7%€337.72€192.98n/a36
Dec ’25€235.95
€273.69
+16.0%
9.1%€331.28€189.30n/a36
Nov ’25€220.00
€266.79
+21.3%
8.3%€323.23€184.70n/a35
Oct ’25€216.30
€259.28
+19.9%
8.4%€314.48€179.70n/a34
Sep ’25€237.30
€258.23
+8.8%
9.4%€312.94€178.82n/a34
Aug ’25€205.70
€254.49
+23.7%
11.0%€322.56€175.10n/a34
Jul ’25€207.00
€260.52
+25.9%
11.0%€326.73€177.37n/a35
Jun ’25€192.42
€260.76
+35.5%
11.4%€323.19€175.45n/a36
May ’25€230.10
€292.04
+26.9%
8.9%€323.16€175.43n/a37
Apr ’25€252.50
€292.04
+15.7%
8.9%€323.16€175.43n/a37
Mar ’25€271.65
€288.66
+6.3%
9.6%€322.98€175.33n/a37
Feb ’25€270.50
€262.85
-2.8%
10.5%€303.24€160.81n/a37
Jan ’25€248.20
€255.29
+2.9%
9.6%€293.54€160.53n/a36
Dec ’24€249.25
€254.41
+2.1%
9.5%€285.05€160.91€235.9535
Nov ’24€199.22
€239.48
+20.2%
8.8%€279.13€159.91€220.0036
Oct ’24€203.35
€237.92
+17.0%
9.8%€279.04€159.86€216.3037
Sep ’24€229.95
€236.12
+2.7%
9.9%€273.08€156.44€237.3037
Aug ’24€218.05
€215.65
-1.1%
11.0%€254.90€128.81€205.7036
Jul ’24€206.90
€214.71
+3.8%
9.9%€251.96€130.10€207.0036
Jun ’24€199.86
€216.61
+8.4%
9.7%€243.28€132.87€192.4236
May ’24€168.42
€196.88
+16.9%
9.7%€229.10€130.13€230.1036
Apr ’24€184.74
€199.84
+8.2%
10.9%€235.13€133.55€252.5036
Mar ’24€172.92
€198.65
+14.9%
11.2%€234.48€133.18€271.6536
Feb ’24€169.56
€187.23
+10.4%
11.6%€225.47€130.68€270.5036
Jan ’24€154.80
€192.78
+24.5%
11.5%€230.81€133.78€248.2035
Dec ’23€162.02
€194.30
+19.9%
11.0%€230.35€136.29€249.2536

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 10:57
End of Day Share Price 2024/12/20 00:00
Earnings2024/10/31
Annual Earnings2024/01/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Workday, Inc. is covered by 74 analysts. 37 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Adam ShepherdArete Research Services LLP
Dimitri KallianiotisAtlantic Equities LLP
Mark MarconBaird