WDC PE Ratio & Valuation,Is WDC Overvalued

WDC Relative Valuation

WDC'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, WDC is overvalued; if below, it's undervalued.

Historical Valuation

Western Digital Corp (WDC) is now in the Overvalued zone, suggesting that its current forward PS ratio of 5.29 is considered Overvalued compared with the five-year average of 2.98. The fair price of Western Digital Corp (WDC) is between 50.00 to 94.42 according to relative valuation methord. Compared to the current price of 181.88 USD , Western Digital Corp is Overvalued By 92.63%.

Relative Value

Fair Zone

50.00-94.42

Current Price：181.88

92.63%

Overvalued

22.87

15.40

EV/EBITDA

Western Digital Corp. (WDC) has a current EV/EBITDA of 15.40. The 5-year average EV/EBITDA is 14.31. The thresholds are as follows: Strongly Undervalued below -15.31, Undervalued between -15.31 and -0.50, Fairly Valued between 29.12 and -0.50, Overvalued between 29.12 and 43.93, and Strongly Overvalued above 43.93. The current Forward EV/EBITDA of 15.40 falls within the Historic Trend Line -Fairly Valued range.

16.77

EV/EBIT

Western Digital Corp. (WDC) has a current EV/EBIT of 16.77. The 5-year average EV/EBIT is 7.37. The thresholds are as follows: Strongly Undervalued below -32.75, Undervalued between -32.75 and -12.69, Fairly Valued between 27.42 and -12.69, Overvalued between 27.42 and 47.48, and Strongly Overvalued above 47.48. The current Forward EV/EBIT of 16.77 falls within the Historic Trend Line -Fairly Valued range.

5.29

Western Digital Corp. (WDC) has a current PS of 5.29. The 5-year average PS is 1.37. The thresholds are as follows: Strongly Undervalued below -0.24, Undervalued between -0.24 and 0.57, Fairly Valued between 2.18 and 0.57, Overvalued between 2.18 and 2.99, and Strongly Overvalued above 2.99. The current Forward PS of 5.29 falls within the Strongly Overvalued range.

23.76

P/OCF

Western Digital Corp. (WDC) has a current P/OCF of 23.76. The 5-year average P/OCF is 4.13. The thresholds are as follows: Strongly Undervalued below -27.64, Undervalued between -27.64 and -11.76, Fairly Valued between 20.01 and -11.76, Overvalued between 20.01 and 35.89, and Strongly Overvalued above 35.89. The current Forward P/OCF of 23.76 falls within the Overvalued range.

22.22

P/FCF

Western Digital Corp. (WDC) has a current P/FCF of 22.22. The 5-year average P/FCF is -12.21. The thresholds are as follows: Strongly Undervalued below -200.96, Undervalued between -200.96 and -106.59, Fairly Valued between 82.17 and -106.59, Overvalued between 82.17 and 176.54, and Strongly Overvalued above 176.54. The current Forward P/FCF of 22.22 falls within the Historic Trend Line -Fairly Valued range.

Western Digital Corp (WDC) has a current Price-to-Book (P/B) ratio of 10.90. Compared to its 3-year average P/B ratio of 2.68 , the current P/B ratio is approximately 307.37% higher. Relative to its 5-year average P/B ratio of 2.22, the current P/B ratio is about 391.94% higher. Western Digital Corp (WDC) has a Forward Free Cash Flow (FCF) yield of approximately 3.02%. Compared to its 3-year average FCF yield of -3.12%, the current FCF yield is approximately -196.94% lower. Relative to its 5-year average FCF yield of -0.20% , the current FCF yield is about -1636.47% lower.

10.90

P/B

Median3y

2.68

Median5y

2.22

3.02

FCF Yield

Median3y

-3.12

Median5y

-0.20

Competitors Valuation Multiple

The average P/S ratio for WDC's competitors is 4.35, providing a benchmark for relative valuation. Western Digital Corp Corp (WDC) exhibits a P/S ratio of 5.29, which is 21.58% above the industry average. Given its robust revenue growth of 27.40%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of WDC increased by 206.89% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.92 to 41.94.

The secondary factor is the Revenue Growth, contributed 27.40%to the performance.

Overall, the performance of WDC in the past 1 year is driven by Margin Expansion. Which is more sustainable.

27.40%

2.21B → 2.82B

Revenue Growth

506.07%

6.92 → 41.94

Margin Expansion

-326.58%

-11.58 → 26.23

P/E Change

206.89%

65.13 → 199.88

Mkt Cap Growth

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Frequently Asked Questions

Is Western Digital Corp (WDC) currently overvalued or undervalued?

What is Western Digital Corp (WDC) fair value?

WDC'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 Western Digital Corp (WDC) is between 50.00 to 94.42 according to relative valuation methord.

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

What is the current P/B ratio for Western Digital Corp (WDC) as of Jan 08 2026?

As of Jan 08 2026, Western Digital Corp (WDC) has a P/B ratio of 10.90. This indicates that the market values WDC at 10.90 times its book value.

What is the current FCF Yield for Western Digital Corp (WDC) as of Jan 08 2026?

As of Jan 08 2026, Western Digital Corp (WDC) has a FCF Yield of 3.02%. This means that for every dollar of Western Digital Corp’s market capitalization, the company generates 3.02 cents in free cash flow.

What is the current Forward P/E ratio for Western Digital Corp (WDC) as of Jan 08 2026?

As of Jan 08 2026, Western Digital Corp (WDC) has a Forward P/E ratio of 22.87. This means the market is willing to pay $22.87 for every dollar of Western Digital Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Western Digital Corp (WDC) as of Jan 08 2026?

As of Jan 08 2026, Western Digital Corp (WDC) has a Forward P/S ratio of 5.29. This means the market is valuing WDC at $5.29 for every dollar of expected revenue over the next 12 months.

WDC Valuation