Assessing Workday (WDAY) After A 27% Slide And Conflicting Valuation Signals

Simply Wall St.01-21

Some investors may be wondering whether Workday is starting to look interesting at its current price, or whether the shares still carry a premium that is hard to justify. After closing at US$182.99, ...

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After closing at US$182.99, ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-wday/workday/news/assessing-workday-wday-after-a-27-slide-and-conflicting-valu\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Assessing Workday (WDAY) After A 27% Slide And Conflicting Valuation Signals</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing Workday (WDAY) After A 27% Slide And Conflicting Valuation Signals\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-21 22:37 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nasdaq-wday/workday/news/assessing-workday-wday-after-a-27-slide-and-conflicting-valu><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Some investors may be wondering whether Workday is starting to look interesting at its current price, or whether the shares still carry a premium that is hard to justify. After closing at US$182.99, ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-wday/workday/news/assessing-workday-wday-after-a-27-slide-and-conflicting-valu\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE0009356076.USD","symbol_name":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nasdaq-wday/workday/news/assessing-workday-wday-after-a-27-slide-and-conflicting-valu","article_id":"2605649484","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/23815047-main-header/1756202856990"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nasdaq-wday/workday/news/assessing-workday-wday-after-a-27-slide-and-conflicting-valu","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2605649484","pubTimestamp":1769006277,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Some investors may be wondering whether Workday is starting to look interesting at its current price, or whether the shares still carry a premium that is hard to justify.\nAfter closing at US$182.99, the stock has seen a 16.3% decline over the last 30 days and a 27.0% decline over the last year. 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After closing at US$182.99, the stock has seen a 16.3% decline over the last 30 days and a 27.0% decline over the last year. These moves may have changed how some investors think about its growth potential and risk. Recent coverage has focused on Workday's position in enterprise software and its ongoing push to win and retain large corporate customers. This helps explain why investors keep a close eye on sentiment around the stock. Commentary has also highlighted how shifts in expectations for business spending on software can quickly affect Workday's share price, particularly after sharp moves like those seen over the past month. On our valuation checks, Workday currently scores a 3 out of 6. Next we look at what different valuation methods imply for that score, before finishing with a more complete way of thinking about what the stock might be worth.  Find out why Workday's -27.0% return over the last year is lagging behind its peers. AdvertisementApproach 1: Workday Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a company might be worth by projecting its future cash flows and then discounting them back to today’s value. It is essentially asking what those future dollars are worth in today’s terms. For Workday, the model used is a 2 Stage Free Cash Flow to Equity approach, based on its last twelve months Free Cash Flow of about $2.51b. Analyst and extrapolated projections suggest Free Cash Flow reaching about $5.03b by 2030, with a path of annual forecasts and longer term estimates provided out to 2035. Simply Wall St extrapolates beyond the first few analyst years to build a consistent 10 year cash flow profile. When all those projected cash flows are discounted back, the model arrives at an estimated intrinsic value of about $346.05 per share. Compared with the recent share price of $182.99, this implies the stock is 47.1% undervalued according to this DCF output. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Workday is undervalued by 47.1%. Track this in your watchlist or portfolio, or discover 874 more undervalued stocks based on cash flows. WDAY Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Workday. Approach 2: Workday Price vs Earnings For a profitable business, the P/E ratio is a useful shorthand because it links what you pay for the stock to the earnings the company is already generating. It is a simple way of asking how many dollars investors are currently willing to pay for each dollar of earnings. What counts as a “fair” P/E usually reflects how quickly earnings are expected to grow and how much risk investors see in those earnings. Higher growth and lower perceived risk often support a higher P/E, while slower growth or higher risk tend to pull that multiple down. Workday is currently trading on a P/E of 74.96x, compared with the Software industry average of 30.88x and a peer group average of 34.24x. Simply Wall St also calculates a proprietary “Fair Ratio” of 46.26x for Workday. This Fair Ratio is intended to be a more tailored benchmark because it incorporates factors such as earnings growth, profit margins, industry, market cap and company specific risks, rather than relying only on broad peer or sector comparisons. Comparing the current P/E of 74.96x with the Fair Ratio of 46.26x points to the shares trading above that modeled range. Result: OVERVALUED NasdaqGS:WDAY P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Workday Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These let you attach a clear story to your view of Workday by linking your assumptions for fair value, future revenue, earnings and margins to the numbers you see on screen. A Narrative connects three things in one place: the company story you believe, the financial forecast that follows from that story, and the fair value that results from those forecasts, all inside Simply Wall St’s Community page that is used by millions of investors. Once you have a Narrative set up, you can quickly compare your fair value estimate to the current share price to help decide whether you want to buy, hold or sell. The platform updates those Narratives automatically as new information such as news or earnings is released. For example, one Workday Narrative on the Community page might assume a higher fair value based on stronger revenue and margins, while another assumes a lower fair value with more modest revenue and profitability. This shows how different investors can look at the same stock and reach very different conclusions about what it is worth. Do you think there's more to the story for Workday? Head over to our Community to see what others are saying! NasdaqGS:WDAY 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Workday might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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