WDAY Relative Valuation
WDAY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WDAY is overvalued; if below, it's undervalued.
Historical Valuation
Workday Inc (WDAY) is now in the Undervalued zone, suggesting that its current forward PE ratio of 21.28 is considered Undervalued compared with the five-year average of 46.26. The fair price of Workday Inc (WDAY) is between 339.62 to 661.26 according to relative valuation methord. Compared to the current price of 216.62 USD , Workday Inc is Undervalued By 36.22%.
Relative Value
Fair Zone
339.62-661.26
Current Price：216.62
36.22%
Undervalued
21.28
PE
1Y
3Y
5Y
Trailing
Forward
15.18
EV/EBITDA
Workday Inc. (WDAY) has a current EV/EBITDA of 15.18. The 5-year average EV/EBITDA is 28.83. The thresholds are as follows: Strongly Undervalued below 8.98, Undervalued between 8.98 and 18.91, Fairly Valued between 38.75 and 18.91, Overvalued between 38.75 and 48.68, and Strongly Overvalued above 48.68. The current Forward EV/EBITDA of 15.18 falls within the Undervalued range.
16.84
EV/EBIT
Workday Inc. (WDAY) has a current EV/EBIT of 16.84. The 5-year average EV/EBIT is 35.73. The thresholds are as follows: Strongly Undervalued below 6.39, Undervalued between 6.39 and 21.06, Fairly Valued between 50.40 and 21.06, Overvalued between 50.40 and 65.06, and Strongly Overvalued above 65.06. The current Forward EV/EBIT of 16.84 falls within the Undervalued range.
5.43
PS
Workday Inc. (WDAY) has a current PS of 5.43. The 5-year average PS is 8.16. The thresholds are as follows: Strongly Undervalued below 3.92, Undervalued between 3.92 and 6.04, Fairly Valued between 10.29 and 6.04, Overvalued between 10.29 and 12.41, and Strongly Overvalued above 12.41. The current Forward PS of 5.43 falls within the Undervalued range.
17.32
P/OCF
Workday Inc. (WDAY) has a current P/OCF of 17.32. The 5-year average P/OCF is 29.09. The thresholds are as follows: Strongly Undervalued below 12.23, Undervalued between 12.23 and 20.66, Fairly Valued between 37.51 and 20.66, Overvalued between 37.51 and 45.94, and Strongly Overvalued above 45.94. The current Forward P/OCF of 17.32 falls within the Undervalued range.
18.76
P/FCF
Workday Inc. (WDAY) has a current P/FCF of 18.76. The 5-year average P/FCF is 35.73. The thresholds are as follows: Strongly Undervalued below 12.42, Undervalued between 12.42 and 24.08, Fairly Valued between 47.39 and 24.08, Overvalued between 47.39 and 59.04, and Strongly Overvalued above 59.04. The current Forward P/FCF of 18.76 falls within the Undervalued range.
Workday Inc (WDAY) has a current Price-to-Book (P/B) ratio of 6.44. Compared to its 3-year average P/B ratio of 8.07 , the current P/B ratio is approximately -20.20% higher. Relative to its 5-year average P/B ratio of 10.42, the current P/B ratio is about -38.18% higher. Workday Inc (WDAY) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.01%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.74% , the current FCF yield is about -100.00% lower.
6.44
P/B
Median3y
8.07
Median5y
10.42
4.57
FCF Yield
Median3y
3.01
Median5y
2.74
Competitors Valuation Multiple
The average P/S ratio for WDAY's competitors is , providing a benchmark for relative valuation. Workday Inc Corp (WDAY) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 12.59%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WDAY decreased by 16.05% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.94 to 10.36.
The secondary factor is the Revenue Growth, contributed 12.59%to the performance.
Overall, the performance of WDAY in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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