Stock Price & Analysis

Based on the analysis of Workday, Inc. (WDAY), the stock presents a compelling opportunity. The strong fundamentals, positive analyst sentiment, and favorable technical indicators suggest that buying WDAY is advisable at this time.

Buy WDAY stock as it shows strong fundamentals and positive analyst sentiment with a price target upside of 14-32%.

The price prediction for WDAY stock in 2025 is expected to reach $260 per share, driven by strong earnings, revenue growth, and AI investments. Analysts have raised targets, with some as high as $315, indicating confidence in its future performance.

The S1 support level for WDAY Stock is $232.97 ,The R1 resistant level for WDAY Stock is $252.23.

As of the end of day on 2025-04-02, the price of WDAY Stock was $228.81.

The target price for WDAY Stock according to analyst rating is 312.90, with the highest price target at 360.00 and the lowest at 250.00. Analysts have a Moderate Buy rating on WDAY Stock overall.

The market cap of WDAY is $62.6B.

Analysis and Insights

To determine if Workday (WDAY) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

Workday's valuation metrics are elevated compared to industry averages:

• PE Ratio: 134.12 (2025/Q4)
• EV/EBITDA: 58.01 (2025/Q3)
• PS Ratio: 7.72 (2025/Q4)

These metrics suggest the stock is trading at a premium.

Financial Performance:

• Revenue Growth: Steady, with Q4 revenue at $2.21B, up 15.2% YoY.
• Net Income: Inconsistent, with Q1 net income dropping to $107M from $1.18B in Q4.

This indicates revenue growth without consistent profitability.

Analyst Sentiment:

Analysts are mixed. Some raise targets citing strong execution and AI potential, while others lower targets due to growth concerns. The average price target is $305, with a 21.7% upside.

Conclusion:

Workday appears overvalued due to high multiples, inconsistent profits, and mixed sentiment. Investors should exercise caution.

Workday, Inc. is a provider of enterprise cloud applications for finance and human resources. The Company provides approximately 10,000 organizations with software-as-a-service solutions to help solve business challenges, including supporting and empowering their workforce, managing their finances and spending in an ever-changing environment, and planning for the unexpected. The Company provides organizations with a unified system that can help them plan, execute, analyze, and extend to other applications and environments, thereby helping them continuously adapt how they manage their business and operations. The Company sells its solutions worldwide primarily through direct sales. The Company also offers professional services, both directly and through its Workday Services Partners to help customers deploy its solutions. The Company offers applications for Financial Management, Spend Management, Human Capital Management (HCM), Planning, and Analytics and Benchmarking.

Workday (WDAY) is expected to reach a price of $400 by 2030, driven by strong financial performance and increasing demand for cloud-based HR and financial solutions. The stock is currently trading at $252.05 as of March 24, 2025, with a positive outlook from analysts. Key drivers include the company's focus on AI innovation and its ability to maintain strong margins despite economic challenges.

WDAY has a total of 18800 employees.