US Equities Analysis

WDAY — Workday, Inc.

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 13.3%
Profit Margins 8.6%
Return on Equity 10.86%
Return on Assets 4.34%
Free Float 0.2B
Short Int % Utilisation 15.44%

2.2 Growth

Metric Value
Revenue Growth 13.5%
Free Cash Flow 3.12B
EBITDA 22.09 (Ratio)
Enterprise Value 33.41B
EV/Revenue 3.39
EV/EBITDA 22.09

Revenue growth of 13.5% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 0.77%
Risk / Std Dev (Ann.)* 53.05%
1-Year Price Return* -12.12%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $198.68
52-Week Range $110.36 – $249.85
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $9.55B
Prior annual revenue $8.45B
EBIT $1.12B
Tax rate 31.30%
NOPAT = EBIT × (1 − tax rate) $771.50M
Forecast start-growth basis 13.09%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $771.50M
Add: depreciation & amortisation $347.00M
Less: capital expenditure -$162.00M
Less/(add): working-capital cash-flow movement -$329.00M
Current unlevered FCFF $627.50M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 13.09% $872.53M $392.44M -$183.21M -$372.08M $709.67M $676.98M
2 10.45% $963.67M $433.43M -$260.12M -$410.95M $726.04M $630.24M
3 7.80% $1.04B $467.23M -$342.68M -$442.99M $720.37M $569.03M
4 5.15% $1.09B $491.29M -$425.81M -$465.80M $691.98M $497.40M
5 2.50% $1.12B $503.57M -$503.57M -$477.45M $642.16M $420.04M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.05
Cost of equity 10.51%
Pre-tax cost of debt 3.17%
WACC 9.89%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $8.90B
Implied terminal EV / EBITDA 4.17x
Terminal value as % of enterprise value 66.54%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $2.79B
Present value of terminal value $5.56B
Indicated enterprise value $8.35B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $8.35B
Less: gross interest-bearing debt $3.82B
Add: cash and equivalents $5.44B
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $9.97B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 268,117,000.00
Share-count basis reported diluted weighted-average shares
Current market price $193.51
DCF indicative value per share $37.19
Indicative value vs. market price -80.78%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:54:12.301126 UTC; latest reported fiscal period: 2026-01-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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