Western Digital Corporation

DB:WDC Stock Report

Market Cap: €20.6b

Western Digital Valuation

Is WDC 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 WDC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WDC (€60.8) is trading below our estimate of fair value (€90.47)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WDC. This is calculated by dividing WDC's market cap by their current earnings.
What is WDC's PE Ratio?
PE Ratio67.9x
EarningsUS$329.00m
Market CapUS$21.71b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WDC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.6x
STX Seagate Technology Holdings
24.9x12.1%US$20.5b
NTAP NetApp
22.5x7.4%US$24.0b
992 Lenovo Group
12.1x17.5%HK$111.4b
HPE Hewlett Packard Enterprise
15x7.3%US$27.4b
WDC Western Digital
67.9x20.4%€21.7b

Price-To-Earnings vs Peers: WDC is expensive based on its Price-To-Earnings Ratio (67.9x) compared to the peer average (18.6x).

Price to Earnings Ratio vs Industry

How does WDC's PE Ratio compare vs other companies in the European Tech Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WDC 67.9xIndustry Avg. 21.2xNo. of Companies4PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WDC is expensive based on its Price-To-Earnings Ratio (67.9x) compared to the Global Tech industry average (21.9x).

Price to Earnings Ratio vs Fair Ratio

What is WDC'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.

WDC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio67.9x
Fair PE Ratio19.1x

Price-To-Earnings vs Fair Ratio: WDC is expensive based on its Price-To-Earnings Ratio (67.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.1x).

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 WDC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€60.80
€82.66
+36.0%
11.7%€105.73€55.16n/a21
Nov ’25€60.04
€81.56
+35.8%
13.8%€105.89€55.25n/a21
Oct ’25€61.99
€78.15
+26.1%
14.6%€103.81€54.16n/a21
Sep ’25€57.55
€81.28
+41.2%
12.7%€105.21€54.89n/a21
Aug ’25€54.96
€83.39
+51.7%
12.4%€106.57€55.60n/a21
Jul ’25€71.01
€81.61
+14.9%
14.4%€107.05€47.48n/a22
Jun ’25€69.80
€77.81
+11.5%
19.8%€106.01€30.42n/a22
May ’25€66.93
€77.30
+15.5%
20.6%€107.50€30.85n/a22
Apr ’25€63.25
€62.55
-1.1%
17.6%€81.25€30.47n/a22
Mar ’25€58.91
€60.13
+2.1%
16.5%€76.12€30.63n/a21
Feb ’25€52.99
€58.94
+11.2%
18.0%€75.71€30.47n/a21
Jan ’25€47.63
€45.80
-3.8%
16.2%€62.38€30.27n/a22
Dec ’24€44.69
€45.99
+2.9%
13.6%€62.32€37.57n/a21
Nov ’24€37.71
€46.05
+22.1%
14.3%€61.51€29.34€60.0421
Oct ’24€43.17
€43.78
+1.4%
15.5%€56.27€29.07€61.9922
Sep ’24€41.34
€42.12
+1.9%
14.9%€55.52€28.68€57.5523
Aug ’24€38.01
€41.47
+9.1%
15.2%€54.63€28.23€54.9622
Jul ’24€34.50
€40.53
+17.5%
17.7%€55.21€28.52€71.0121
Jun ’24€36.10
€40.71
+12.8%
18.3%€54.73€28.28€69.8023
May ’24€29.57
€41.75
+41.2%
16.7%€54.33€28.07€66.9323
Apr ’24€34.10
€43.72
+28.2%
16.3%€56.73€29.31€63.2523
Mar ’24€36.20
€43.34
+19.7%
16.0%€56.18€30.90€58.9123
Feb ’24€38.55
€40.90
+6.1%
18.1%€54.62€27.31€52.9923
Jan ’24€29.36
€40.79
+38.9%
19.1%€56.62€26.42€47.6324
Dec ’23€34.85
€43.54
+24.9%
19.4%€60.05€27.12€44.6924
Nov ’23€34.78
€45.59
+31.1%
19.3%€62.76€28.34€37.7124

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

KATEK

€221.7m

Provides electronics value chain services in Germany, Europe, and internationally.

KTEK

€15.10

7D

0%

1Y

1.0%

UniDevice

€1.8m

Together with its subsidiary, PPA International AG, engages in wholesale of electronic entertainment and communication devices.

UDC

€0.12

7D

0%

1Y

-92.0%

Lenovo Group

HK$111.4b

An investment holding company, develops, manufactures, and markets technology products and services.

LHL

HK$1.11

7D

-7.2%

1Y

-3.6%