WDAY PE Ratio & Valuation,Is WDAY Overvalued

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 20.19 is considered Undervalued compared with the five-year average of 45.15. The fair price of Workday Inc (WDAY) is between 333.77 to 653.72 according to relative valuation methord. Compared to the current price of 210.22 USD , Workday Inc is Undervalued By 37.02%.

Relative Value

Fair Zone

333.77-653.72

Current Price：210.22

37.02%

Undervalued

20.19

14.50

EV/EBITDA

Workday Inc. (WDAY) has a current EV/EBITDA of 14.50. The 5-year average EV/EBITDA is 28.27. The thresholds are as follows: Strongly Undervalued below 8.84, Undervalued between 8.84 and 18.55, Fairly Valued between 37.99 and 18.55, Overvalued between 37.99 and 47.71, and Strongly Overvalued above 47.71. The current Forward EV/EBITDA of 14.50 falls within the Undervalued range.

16.07

EV/EBIT

Workday Inc. (WDAY) has a current EV/EBIT of 16.07. The 5-year average EV/EBIT is 34.89. The thresholds are as follows: Strongly Undervalued below 6.34, Undervalued between 6.34 and 20.61, Fairly Valued between 49.17 and 20.61, Overvalued between 49.17 and 63.44, and Strongly Overvalued above 63.44. The current Forward EV/EBIT of 16.07 falls within the Undervalued range.

5.20

Workday Inc. (WDAY) has a current PS of 5.20. The 5-year average PS is 8.06. The thresholds are as follows: Strongly Undervalued below 3.87, Undervalued between 3.87 and 5.96, Fairly Valued between 10.15 and 5.96, Overvalued between 10.15 and 12.25, and Strongly Overvalued above 12.25. The current Forward PS of 5.20 falls within the Undervalued range.

16.58

P/OCF

Workday Inc. (WDAY) has a current P/OCF of 16.58. The 5-year average P/OCF is 28.54. The thresholds are as follows: Strongly Undervalued below 12.34, Undervalued between 12.34 and 20.44, Fairly Valued between 36.64 and 20.44, Overvalued between 36.64 and 44.74, and Strongly Overvalued above 44.74. The current Forward P/OCF of 16.58 falls within the Undervalued range.

17.96

P/FCF

Workday Inc. (WDAY) has a current P/FCF of 17.96. The 5-year average P/FCF is 34.87. The thresholds are as follows: Strongly Undervalued below 12.99, Undervalued between 12.99 and 23.93, Fairly Valued between 45.81 and 23.93, Overvalued between 45.81 and 56.76, and Strongly Overvalued above 56.76. The current Forward P/FCF of 17.96 falls within the Undervalued range.

Workday Inc (WDAY) has a current Price-to-Book (P/B) ratio of 6.12. Compared to its 3-year average P/B ratio of 8.03 , the current P/B ratio is approximately -23.81% higher. Relative to its 5-year average P/B ratio of 10.22, the current P/B ratio is about -40.10% higher. Workday Inc (WDAY) has a Forward Free Cash Flow (FCF) yield of approximately 4.78%. Compared to its 3-year average FCF yield of 3.06%, the current FCF yield is approximately 55.91% lower. Relative to its 5-year average FCF yield of 2.79% , the current FCF yield is about 70.90% lower.

6.12

P/B

Median3y

8.03

Median5y

10.22

4.78

FCF Yield

Median3y

3.06

Median5y

2.79

Competitors Valuation Multiple

The average P/S ratio for WDAY's competitors is 10.15, providing a benchmark for relative valuation. Workday Inc Corp (WDAY) exhibits a P/S ratio of 5.20, which is -48.81% above the industry average. Given its robust revenue growth of 12.59%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of WDAY decreased by 19.43% 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.

12.59%

2.16B → 2.43B

Revenue Growth

15.88%

8.94 → 10.36

Margin Expansion

-47.90%

166.37 → 86.68

P/E Change

-19.43%

262.06 → 211.14

Mkt Cap Growth

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Frequently Asked Questions

Is Workday Inc (WDAY) currently overvalued or undervalued?

What is Workday Inc (WDAY) fair value?

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. The fair price of Workday Inc (WDAY) is between 333.77 to 653.72 according to relative valuation methord.

How does WDAY's valuation metrics compare to the industry average?

What is the current P/B ratio for Workday Inc (WDAY) as of Jan 08 2026?

As of Jan 08 2026, Workday Inc (WDAY) has a P/B ratio of 6.12. This indicates that the market values WDAY at 6.12 times its book value.

What is the current FCF Yield for Workday Inc (WDAY) as of Jan 08 2026?

As of Jan 08 2026, Workday Inc (WDAY) has a FCF Yield of 4.78%. This means that for every dollar of Workday Inc’s market capitalization, the company generates 4.78 cents in free cash flow.

What is the current Forward P/E ratio for Workday Inc (WDAY) as of Jan 08 2026?

As of Jan 08 2026, Workday Inc (WDAY) has a Forward P/E ratio of 20.19. This means the market is willing to pay $20.19 for every dollar of Workday Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Workday Inc (WDAY) as of Jan 08 2026?

As of Jan 08 2026, Workday Inc (WDAY) has a Forward P/S ratio of 5.20. This means the market is valuing WDAY at $5.20 for every dollar of expected revenue over the next 12 months.

WDAY Valuation