Workday, Inc.
Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational,…
Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; perform financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contract management, build and execute sourcing events, such as requests for proposals, and manage indirect spend; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; Workday Extend for customers and their developers to build custom applications. The company serves the professional and business services, financial services, healthcare, manufacturing, media, education, government, technology, media, retail, and hospitality industries. It sells its solutions through its direct sales organization. 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.Priced within the modelled range
5-year outlook: Not shown because confidence is low: Earnings-based DCF disagrees strongly.
Other models: USD 62.57–140.76 (median 78.56). The recommended value is 103% above that median, so treat the upside with extra caution.
Why: Latest free cash flow is depressed by heavy investment or one-off items, so a three-year average is used instead.
Details and the full model are below.
Market price within modeled range
Normalised free-cash-flow DCF using a three-year average of free cash flow, because the latest figure is depressed by heavy investment or one-off items, with cash, debt, and shares from the latest report. Base assumptions are 11.54% growth, 3.25% terminal growth, and 11.5% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 11.54%, discount rate 11.50%, terminal growth 3.25% (sector defaults). See a worked example.
Blended growth assumption: 11.5% (sector default 8.5%, own revenue history 16.8%, analyst revenue consensus 10.4%).
Analyst consensus expects revenue growth of 10.4% a year; the growth assumption used is 11.5%.
Adjust assumptions
Why this model: Latest free cash flow is depressed by heavy investment or one-off items, so a three-year average is used instead.
Compare models- Recommended: Normalised free-cash-flow DCF — USD 159.44 (-20.3%)
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EPS-based Gordon proxy
— USD 62.57 (-68.7%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 197.90 (-1.1%)
Not used: Free cash flow is 2.3x net income, which usually means costs such as lease payments sit outside operating cash flow, so it may be overstated.
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FCFF (steady state)
— USD 140.76 (-29.7%)
Not used: Free cash flow is 2.3x net income, which usually means costs such as lease payments sit outside operating cash flow, so it may be overstated.
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EV/EBITDA (12x)
— USD 78.56 (-60.8%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 195.81 (-2.2%)
Not used: Free cash flow is 2.3x net income, which usually means costs such as lease payments sit outside operating cash flow, so it may be overstated.
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EV/Sales (Rule of 40)
— USD 225.60 (+12.7%)
Not used: Used only when cash-flow models land far below the price; here they do not.
| Bear USD 120.97 | -65.5% |
| Base USD 159.44 | -25.5% |
| Bull USD 223.55 | 10.5% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 200.17 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.3%, discount 11.5%).
Compare: the market implies 17.3% a year, this model assumes 11.5%. The market expects more than this model does, which is why it reads as overvalued.
How the Normalised free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 9.5% | 10.5% | 11.5% | 12.5% | 13.5% |
|---|---|---|---|---|---|
| 7.5% | 180.43 | 154.88 | 135.54 | 120.39 | 108.21 |
| 9.5% | 196.25 | 168.26 | 147.08 | 130.50 | 117.17 |
| 11.5% | 213.20 | 182.59 | 159.44 | 141.32 | 126.76 |
| 13.5% | 231.35 | 197.93 | 172.66 | 152.88 | 137.00 |
| 15.5% | 250.76 | 214.32 | 186.78 | 165.23 | 147.93 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 86 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 4 of 5 years profitable | 16 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +13.1% a year | 20 / 20 |
| Balance sheet | net debt 0.2x EBITDA | 20 / 20 |
| Margins | EBITDA margin 16% | 10 / 20 |
Peers in Information Technology
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| WDAY (this company) | USD 200.17 | -25.5% | 40.0 | 7.8 | – | 86 |
| SMCI Supermicro | USD 27.08 | 50.8% | 8.5 | 1.3 | – | 68 |
| SNDK Sandisk | USD 806.43 | 44.1% | 6.4 | 6.8 | – | 76 |
| ADBE Adobe Inc. | USD 246.44 | 42.5% | 13.4 | 8.3 | – | 100 |
| IT Gartner | USD 198.07 | 35.7% | 13.3 | – | – | 92 |
| INTU Intuit | USD 354.84 | 31.9% | 21.1 | 5.1 | 1.4% | 100 |
| HPQ HP Inc. | USD 29.44 | 31.6% | 11.1 | – | 4.0% | 64 |
| GIB-A.TO CGI Inc. | CAD 115.51 | 26.9% | 13.9 | 2.4 | 0.6% | 90 |
| FSLR First Solar | USD 195.76 | 25.9% | 11.3 | 1.9 | – | 84 |
| Peer median | 12.3 | 3.7 | ||||
Trailing 12-month financials
TTM through 31 Jul 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 13:46
| Revenue | USD 10,157,000,000 |
|---|---|
| EBITDA | USD 1,669,000,000 |
| EBIT | USD 1,303,000,000 |
| Net income | USD 1,251,000,000 |
| Free cash flow | USD 2,844,000,000 |
| Capital expenditures | USD 238,000,000 |
| Debt | USD 3,772,000,000 |
| Cash | USD 3,403,000,000 |
| Working capital | USD -604,000,000 |
| Shares outstanding | 250,238,000 |