WDAY

Workday, Inc.

Fundamental data last updated:November 3, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company's applications help its customers to plan, execute, analyze, and extend to other applications and environments, and to manage their business and operations. It offers a suite of financial management applications, which enable chief financial officers to maintain accounting information in the general ledger; manage financial processes; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. The company also provides cloud spend management solutions that helps organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; Human Capital Management (HCM) solution, a suite of human capital management applications that allows organizations to manage the entire employee lifecycle from recruitment to retirement, and enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences; Workday applications for planning; and applications for analytics and reporting, including augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. It serves professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.

 


VALUATION

P/E

42.92

Market Cap ($M USD)

$37.51B

Forward P/E

10.22

PEG

0.03

PRICE TO SALES

3.81

PRICE TO BOOK

5.44

EV / EBITDA

24.35

5-Year Average P/E

Free Cash Flow Yield

7.92%

DCF Value

$143.67

Graham Number

$44.45

Price to FCF

12.62

EV to FCF

13.71

Earnings Yield

2.33%

FCF Yield

7.92%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.34

Next Year EPS Growth Estimate

$14.01

Next Year Revenue Growth Estimate

$16.22B

Return on Equity (ROE)

10.41%

FREE CASH FLOW

Operating Margin

11.66%

Debt-to-Equity

0.49

Piotroski F-Score

8

Altman Z-Score

3.03

Return on Invested Capital (ROIC)

12.02%

Current Ratio

1.01

Quick Ratio

1.01

Net Debt to EBITDA

1.94

Interest Coverage

10.26

Gross Profit margin

75.77%

FCF PER SHARE

$11.71

REVENUE PER SHARE

$38.81

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing Workday, Inc. relative to its intrinsic value. Based on the data at the time of this analysis, the stock traded below its DCF Value, suggesting potential undervaluation. The Forward P/E of 9.12 indicates a more attractive valuation compared to its current P/E, hinting at expected earnings growth. Despite a modest Altman Z-score of 2.81, which suggests moderate financial stability, the earnings yield of 2.07% is not particularly compelling. Overall, the financial health appears robust, but the market may not fully appreciate its growth prospects.

AI Exposure / Tech Reliance

In the rapidly evolving tech landscape, Workday is well-positioned to leverage AI advancements. As a player in the Software - Application industry, it stands to benefit from increased demand for AI-driven solutions. This positioning could enhance its competitive edge and drive future growth.

The Bull Case

For the discerning GARP investor, Workday presents a compelling opportunity. With a solid ROIC of 7.27% and a Piotroski F-Score of 7, the company demonstrates efficient capital allocation and financial health. Its FCF Yield of 8.19% and strong operating margin of 8.90% highlight its ability to generate cash and maintain pricing power. These metrics suggest a company capable of sustaining growth while delivering shareholder value.

The Bear Case

However, Workday is not without its challenges. The Price/Book ratio of 4.28 and Price/Sales ratio of 3.55 indicate a potentially overvalued stock relative to its book and sales values. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension. While its debt levels are manageable, the valuation multiples suggest caution for those wary of paying a premium.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$182.58

Institutional Ownership %

1-Year Beta

1.04

Insider Buying % (6 Mo)

Distance to 52-Week High

79.53%

Distance to 52-Week Low

22.93%

EARNINGS SURPRISE %

5.98%

50-DAY SMA

$125.21

200-DAY SMA

$186.24

⚠️ 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.