Workday Stock Valuation

WDAY
 Stock
  

USD 159.45  0.45  0.28%   

Do you wonder what the value of Workday is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Workday, is its stock price multiplied by the total number of shares outstanding, calculating Workday's enterprise value requires a different approach. It uses Workday's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Workday maintains a prevalent Real Value of $197.69 per share. The last-minute price of the company is $159.45. At this time, the company appears to be undervalued. Our model calculates the value of Workday from examining the company fundamentals such as Profit Margin of (0.49) %, current valuation of 37.52 B, and Return On Asset of (0.88) % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we encourage acquiring undervalued securities and dropping overvalued securities since, at some point, asset prices and their ongoing real values will grow together.
  
Workday Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Workday's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 159.45
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.
138.83
Downside
197.69
Real Value
200.24
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:
Hype
Prediction
LowEstimated ValueHigh
151.20153.75156.30
Details
28 Analysts
Consensus
LowTarget PriceHigh
271.00325.91370.00
Details

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 first in beta category among related companies. It is rated first in price to sales category among related companies fabricating about  5.07  of Price to Sales per Beta. . 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.
Workday, Inc. provides enterprise cloud applications in the United States and internationally. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California. Workday operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 15200 people.

Workday Valuation Growth Rates

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.
Quick Ratio1.47
Revenue Growth22.10%
Enterprise Value To Ebitda187.50
Enterprise Value To Revenue6.95
Check out Your Current Watchlist. 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Complementary Tools for Workday Stock analysis

When running Workday 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 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.
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 Workday value 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.