Based on the provided data and current valuation metrics, here's a concise analysis of whether WDAY is overvalued:
Valuation Analysis: WDAY's current P/E ratio of 31.97 shows a declining trend from 36.26 in Q1 2025, indicating improving valuation efficiency.
Growth Metrics: The company demonstrates strong revenue growth with Q3 2025 revenue reaching $2.16B, up from $1.99B in Q1 2025, while net income significantly improved from $107M to $193M in the same period.
Profitability Improvement: Net margin expanded impressively from 5.38% to 8.94% over three quarters, showing enhanced operational efficiency.
Analyst Consensus: Recent analyst actions are predominantly positive, with Goldman Sachs raising the price target to $310 and multiple "Strong Buy" ratings, suggesting the stock still has upside potential despite current valuation levels.
Conclusion: Given the strong growth trajectory, improving margins, and positive analyst sentiment, WDAY's current valuation appears justified by its fundamental performance and future growth prospects.