WDC

Western Digital Corporation

Fundamental data last updated:November 3, 2026

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company profile

SECTOR

Technology

industry

Computer Hardware

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for computing devices, such as desktop and notebook personal computers (PCs), smart video systems, gaming consoles, and set top boxes; flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, Internet of Things, industrial, and connected home applications; and flash-based memory wafers. The company also provides data center devices and solutions comprising enterprise helium hard drives; enterprise SSDs consisting of flash-based SSDs and software solutions for use in enterprise servers, online transactions, data analysis, and other enterprise applications; data center solutions for data storage systems and tiered storage models; and data storage platforms. In addition, it offers client solutions, such as external HDD storage products in mobile and desktop form; client portable SSDs; removable cards that are used in consumer devices comprising mobile phones, tablets, imaging systems, and cameras and smart video systems; universal serial bus flash drives for use in the computing and consumer markets; and wireless drive products used in-field back up of created content, as well as wireless streaming of high-definition movies, photos, music, and documents to tablets, smartphones, and PCs. The company sells its products under the G-Technology, SanDisk, and WD brands to original equipment manufacturers, distributors, dealers, resellers, and retailers. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.

 


VALUATION

P/E

28.30

Market Cap ($M USD)

$183.37B

Forward P/E

10.43

PEG

0.06

PRICE TO SALES

15.57

PRICE TO BOOK

18.96

EV / EBITDA

34.34

5-Year Average P/E

Free Cash Flow Yield

1.58%

DCF Value

$-0.46

Graham Number

$108.94

Price to FCF

63.12

EV to FCF

63.01

Earnings Yield

3.53%

FCF Yield

1.58%

DIVIDEND

Yield

0.08%

Annual Payout

$0.45

Payout Ratio

2.68%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$18.80

Next Year EPS Growth Estimate

$51.01

Next Year Revenue Growth Estimate

$33.40B

Return on Equity (ROE)

91.94%

FREE CASH FLOW

Operating Margin

30.78%

Debt-to-Equity

0.96

Piotroski F-Score

7

Altman Z-Score

22.92

Return on Invested Capital (ROIC)

34.83%

Current Ratio

1.49

Quick Ratio

1.20

Net Debt to EBITDA

-0.06

Interest Coverage

16.11

Gross Profit margin

45.43%

FCF PER SHARE

$8.42

REVENUE PER SHARE

$34.14

Gainseekers Quantitative Analysis

Summary

The market appears to be mispricing Western Digital Corporation, with its snapshot price significantly extended above its DCF value. Despite this, the Forward P/E of 10.38 suggests a more reasonable valuation when considering future earnings potential. The Altman Z-score of 21.36 indicates robust financial health, reducing bankruptcy risk. However, the earnings yield of just 3.55% raises questions about the stock’s attractiveness compared to other investment opportunities. Overall, while the company shows strong growth prospects, its current valuation may not fully reflect its intrinsic value.

AI Exposure / Tech Reliance

Operating within the technology sector, Western Digital is well-positioned to capitalize on AI and modern tech advancements. As a key player in computer hardware, it can leverage its expertise to meet increasing data storage demands. This adaptability ensures resilience in a rapidly evolving tech landscape.

The Bull Case

For value or GARP investors, Western Digital offers compelling reasons to buy. The impressive ROIC of 34.83% highlights exceptional capital efficiency, while a Piotroski F-Score of 7 suggests strong financial health. Despite a modest FCF yield of 1.59%, the company's operating margin of 30.78% underscores its pricing power. These metrics collectively paint a picture of a company capable of generating substantial returns on invested capital.

The Bear Case

Despite its strengths, Western Digital faces significant structural risks. The Price/Book ratio of 18.85 and Price/Sales ratio of 15.48 indicate a potentially overvalued stock, especially when trading near its 52-week high. Additionally, the EV to EBITDA of 34.14 suggests the market may be overestimating its earnings potential. With a low FCF yield and high Price to FCF, cash flow generation remains a concern, making the stock vulnerable to corrections.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$452.71

Institutional Ownership %

1-Year Beta

2.16

Insider Buying % (6 Mo)

Distance to 52-Week High

4.04%

Distance to 52-Week Low

90.38%

EARNINGS SURPRISE %

13.81%

50-DAY SMA

$393.65

200-DAY SMA

$228.23

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.