We’ve recently updated our valuation analysis.

Workday Valuation

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

[object Object] Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WDAY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.7x
Enterprise Value/EBITDA310.8x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for WDAY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average9.9x
ADSK Autodesk
8.7x10.8%US$42.8b
CDNS Cadence Design Systems
13.3x10.1%US$45.7b
SNPS Synopsys
10x11.1%US$50.7b
ROP Roper Technologies
7.5x5.8%US$46.3b
WDAY Workday
7.1x15.1%US$42.3b

Price-To-Sales vs Peers: WDAY is good value based on its Price-To-Sales Ratio (7.1x) compared to the peer average (9.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.8%
n/an/an/a

Price-To-Sales vs Industry: WDAY is expensive based on its Price-To-Sales Ratio (7.1x) compared to the US Software industry average (3.9x)


Price to Sales Ratio vs Fair Ratio

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

WDAY PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.1x
Fair PS Ratio10x

Price-To-Sales vs Fair Ratio: WDAY is good value based on its Price-To-Sales Ratio (7.1x) compared to the estimated Fair Price-To-Sales Ratio (10x).


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 ($164.61) is trading below our estimate of fair value ($248.08)

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


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$164.61
US$202.16
+22.8%
10.9%US$240.00US$142.00n/a35
Nov ’23US$151.60
US$214.02
+41.2%
12.3%US$282.00US$142.00n/a35
Oct ’23US$152.22
US$216.78
+42.4%
12.1%US$282.00US$142.00n/a34
Sep ’23US$161.09
US$217.53
+35.0%
11.7%US$282.00US$142.00n/a34
Aug ’23US$155.58
US$215.88
+38.8%
13.5%US$310.00US$160.00n/a32
Jul ’23US$142.35
US$219.63
+54.3%
13.4%US$310.00US$160.00n/a32
Jun ’23US$156.56
US$222.47
+42.1%
14.2%US$310.00US$160.00n/a32
May ’23US$206.70
US$306.94
+48.5%
9.7%US$360.00US$229.00n/a33
Apr ’23US$237.93
US$309.64
+30.1%
9.6%US$360.00US$229.00n/a33
Mar ’23US$240.33
US$313.15
+30.3%
8.1%US$360.00US$229.00n/a33
Feb ’23US$252.74
US$324.03
+28.2%
8.7%US$370.00US$229.00n/a33
Jan ’23US$273.18
US$329.09
+20.5%
8.6%US$370.00US$229.00n/a33
Dec ’22US$260.86
US$329.09
+26.2%
8.6%US$370.00US$229.00US$169.4833
Nov ’22US$288.07
US$305.22
+6.0%
8.6%US$360.00US$229.00US$151.6032
Oct ’22US$254.55
US$303.57
+19.3%
8.2%US$340.00US$229.00US$152.2230
Sep ’22US$273.37
US$294.22
+7.6%
8.3%US$340.00US$229.00US$161.0928
Aug ’22US$234.40
US$276.47
+17.9%
9.5%US$320.00US$195.00US$155.5830
Jul ’22US$235.51
US$276.47
+17.4%
9.5%US$320.00US$195.00US$142.3530
Jun ’22US$226.41
US$276.97
+22.3%
9.6%US$320.00US$195.00US$156.5630
May ’22US$247.00
US$279.27
+13.1%
10.7%US$325.00US$195.00US$206.7030
Apr ’22US$254.97
US$274.40
+7.6%
12.3%US$325.00US$180.00US$237.9330
Mar ’22US$252.80
US$273.45
+8.2%
11.4%US$325.00US$180.00US$240.3331
Feb ’22US$236.69
US$257.94
+9.0%
12.1%US$305.00US$165.00US$252.7431
Jan ’22US$239.61
US$254.55
+6.2%
12.3%US$305.00US$165.00US$273.1829
Dec ’21US$225.70
US$253.39
+12.3%
12.1%US$296.00US$165.00US$260.8631

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


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