Workday Valuation

WDAY Stock  USD 273.62  3.76  1.36%   
At this time, the company appears to be fairly valued. Workday maintains a prevalent Real Value of $266.93 per share. The last-minute price of the company is $273.62. Our model calculates the value of Workday from examining the company fundamentals such as Return On Asset of 0.0076, current valuation of 67.78 B, and Profit Margin of 0.19 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors encourage acquiring undervalued securities and dropping overvalued securities since, at some point, asset prices and their ongoing real values will grow together.
Price Book
8.9449
Enterprise Value
67.8 B
Enterprise Value Ebitda
90.1269
Price Sales
9.9583
Forward PE
42.0168
Fairly Valued
Today
273.62
Please note that Workday's price fluctuation is very steady at this time. Calculation of the real value of Workday is based on 3 months time horizon. Increasing Workday's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Workday is useful when determining the fair value of the Workday stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Workday. Since Workday is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Workday Stock. However, Workday's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  273.62 Real  266.93 Target  254.16 Hype  273.62 Naive  290.42
The real value of Workday Stock, also known as its intrinsic value, is the underlying worth of Workday Company, which is reflected in its stock price. It is based on Workday's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Workday's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Workday's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
265.37
Downside
266.93
Real Value
300.98
Upside
Estimating the potential upside or downside of Workday helps investors to forecast how Workday stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Workday more accurately as focusing exclusively on Workday's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.361.581.68
Details
Hype
Prediction
LowEstimatedHigh
272.06273.62275.18
Details
Naive
Forecast
LowNext ValueHigh
288.86290.42291.98
Details
39 Analysts
Consensus
LowTarget PriceHigh
231.29254.16282.12
Details

Workday Investments

(1.66 Billion)

Workday Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Workday's current stock value. Our valuation model uses many indicators to compare Workday value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Workday competition to find correlations between indicators driving Workday's intrinsic value. More Info.
Workday is rated fourth in net asset category among related companies. It is rated first in price to sales category among related companies . The ratio of Net Asset to Price To Sales for Workday is about  1,652,089,212 . Price To Sales Ratio is likely to rise to 171.08 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Workday by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Workday's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Workday's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Workday's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Workday and how it compares across the competition.

About Workday Valuation

The stock valuation mechanism determines the current worth of Workday on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Workday. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Workday based exclusively on its fundamental and basic technical indicators. By analyzing Workday's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Workday's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Workday. We calculate exposure to Workday's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Workday's related companies.
Last ReportedProjected for 2024
Gross Profit5.5 B5.8 B
Pretax Profit Margin 0.05 (0.82)
Operating Profit Margin 0.03 (0.82)
Net Loss 0.19 (0.83)
Gross Profit Margin 0.76  0.41 

8 Steps to conduct Workday's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Workday's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Workday's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Workday's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Workday's revenue streams: Identify Workday's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Workday's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Workday's growth potential: Evaluate Workday's management, business model, and growth potential.
  • Determine Workday's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Workday's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Workday Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Workday does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding265.3 M
Forward Price Earnings42.0168

Workday Current Valuation Indicators

Valuation refers to the process of determining the present value of Workday and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Workday we look at many different elements of the entity such as Workday's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Workday's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Workday's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Workday, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Workday's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Workday's worth.
When determining whether Workday offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Workday's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Workday Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Workday Stock:
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Workday. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For more information on how to buy Workday Stock please use our How to Invest in Workday guide.
Note that the Workday information on this page should be used as a complementary analysis to other Workday's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Complementary Tools for Workday Stock analysis

When running Workday's price analysis, check to measure Workday's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Workday is operating at the current time. Most of Workday's value examination focuses on studying past and present price action to predict the probability of Workday's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Workday's price. Additionally, you may evaluate how the addition of Workday to your portfolios can decrease your overall portfolio volatility.
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Is Workday's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Workday. If investors know Workday will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Workday listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
5.2
Revenue Per Share
27.776
Quarterly Revenue Growth
0.168
Return On Assets
0.0076
Return On Equity
0.2021
The market value of Workday is measured differently than its book value, which is the value of Workday that is recorded on the company's balance sheet. Investors also form their own opinion of Workday's value that differs from its market value or its book value, called intrinsic value, which is Workday's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Workday's market value can be influenced by many factors that don't directly affect Workday's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Workday's value and its price as these two are different measures arrived at by different means. Investors typically determine if Workday is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Workday's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.