Workday, Inc.

NasdaqGS:WDAY Stock Report

Market Cap: US$68.6b

Workday Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: WDAY ($259.44) is trading below our estimate of fair value ($551.86)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WDAY. This is calculated by dividing WDAY's market cap by their current earnings.
What is WDAY's PE Ratio?
PE Ratio44.4x
EarningsUS$1.54b
Market CapUS$68.59b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WDAY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average59.5x
SNPS Synopsys
55x12.7%US$82.0b
ADSK Autodesk
62.6x15.7%US$65.6b
CDNS Cadence Design Systems
80.2x16.4%US$82.2b
ROP Roper Technologies
40.2x10.7%US$58.8b
WDAY Workday
44.4x13.6%US$68.6b

Price-To-Earnings vs Peers: WDAY is good value based on its Price-To-Earnings Ratio (44.4x) compared to the peer average (59.5x).

Price to Earnings Ratio vs Industry

How does WDAY's PE Ratio compare vs other companies in the US Software Industry?

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AISP Airship AI Holdings
4.5x-27.8%US$74.21m
GRRR Gorilla Technology Group
2x-67.4%US$45.52m
NISN Nisun International Enterprise Development Group
2.1xn/aUS$35.53m
NXTT Next Technology Holding
0.5xn/aUS$19.19m
WDAY 44.4xIndustry Avg. 41.0xNo. of Companies12PE020406080100+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WDAY is expensive based on its Price-To-Earnings Ratio (44.4x) compared to the US Software industry average (41x).

Price to Earnings Ratio vs Fair Ratio

What is WDAY'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.

WDAY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio44.4x
Fair PE Ratio44.5x

Price-To-Earnings vs Fair Ratio: WDAY is good value based on its Price-To-Earnings Ratio (44.4x) compared to the estimated Fair Price-To-Earnings Ratio (44.5x).

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 WDAY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$259.44
US$292.00
+12.5%
8.4%US$350.00US$200.00n/a36
Nov ’25US$239.12
US$288.89
+20.8%
8.3%US$350.00US$200.00n/a35
Oct ’25US$240.66
US$288.57
+19.9%
8.4%US$350.00US$200.00n/a34
Sep ’25US$263.19
US$288.81
+9.7%
9.4%US$350.00US$200.00n/a34
Aug ’25US$222.58
US$276.14
+24.1%
11.0%US$350.00US$190.00n/a34
Jul ’25US$224.72
US$279.08
+24.2%
11.0%US$350.00US$190.00n/a35
Jun ’25US$211.45
US$282.39
+33.6%
11.4%US$350.00US$190.00n/a36
May ’25US$244.96
US$316.30
+29.1%
8.9%US$350.00US$190.00n/a37
Apr ’25US$272.44
US$316.30
+16.1%
8.9%US$350.00US$190.00n/a37
Mar ’25US$291.92
US$312.81
+7.2%
9.6%US$350.00US$190.00n/a37
Feb ’25US$294.00
US$286.05
-2.7%
10.5%US$330.00US$175.00n/a37
Jan ’25US$276.06
US$278.30
+0.8%
9.6%US$320.00US$175.00n/a36
Dec ’24US$272.92
US$276.69
+1.4%
9.5%US$310.00US$175.00n/a35
Nov ’24US$211.46
US$253.10
+19.7%
8.8%US$295.00US$169.00US$239.1236
Oct ’24US$214.85
US$251.53
+17.1%
9.8%US$295.00US$169.00US$240.6637
Sep ’24US$248.49
US$255.07
+2.6%
9.9%US$295.00US$169.00US$263.1937
Aug ’24US$239.80
US$237.74
-0.9%
11.0%US$281.00US$142.00US$222.5836
Jul ’24US$225.89
US$234.35
+3.7%
9.9%US$275.00US$142.00US$224.7236
Jun ’24US$215.31
US$231.49
+7.5%
9.7%US$260.00US$142.00US$211.4536
May ’24US$186.34
US$214.84
+15.3%
9.7%US$250.00US$142.00US$244.9636
Apr ’24US$206.54
US$212.48
+2.9%
10.9%US$250.00US$142.00US$272.4436
Mar ’24US$184.12
US$211.81
+15.0%
11.2%US$250.00US$142.00US$291.9236
Feb ’24US$185.33
US$203.44
+9.8%
11.6%US$245.00US$142.00US$294.0036
Jan ’24US$167.33
US$204.63
+22.3%
11.5%US$245.00US$142.00US$276.0635
Dec ’23US$169.48
US$202.43
+19.4%
11.0%US$240.00US$142.00US$272.9236
Nov ’23US$151.60
US$214.02
+41.2%
12.3%US$282.00US$142.00US$211.4635

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

Discover undervalued companies

Akamai Technologies

US$13.1b

Provides cloud computing, security, and content delivery services in the United States and internationally.

AKAM

US$87.96

7D

-0.9%

1Y

-22.6%

Dye & Durham

CA$1.2b

Provides cloud-based software and technology solutions for law firms, financial service institutions, sole-practitioner law firms, and government organizations in Canada, Australia, South Africa, Ireland, and the United Kingdom.

DYND.F

CA$13.30

7D

8.6%

1Y

39.5%

Capgemini

€26.4b

Engages in the provision of consulting, digital transformation, technology, and engineering services primarily in North America, France, the United Kingdom, Ireland, the rest of Europe, the Asia-Pacific, and Latin America.

CAPM.F

€159.66

7D

-2.8%

1Y

-18.8%