Workday (WDAY) Stock Still Does Not Look Cheap After Its 47% Rebound

Simply Wall St.08-25

Workday stock has rebounded sharply in the past month, while valuation checks are mixed. An intrinsic value estimate from a Discounted Cash Flow (DCF) model points to upside, whereas market multiples ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2662305377?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/company-cover/23815047-main-header/1756202856990","is_english":true,"pubTime":"2026-08-25 21:21","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2662305377","market":"nz","top_or_hot":-1,"title":"Workday (WDAY) Stock Still Does Not Look Cheap After Its 47% Rebound","media":"Simply Wall St.","content":"<div>\n<p>Workday stock has rebounded sharply in the past month, while valuation checks are mixed. An intrinsic value estimate from a Discounted Cash Flow (DCF) model points to upside, whereas market multiples ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-wday/workday/news/workday-wday-stock-still-does-not-look-cheap-after-its-47-re\">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>Workday (WDAY) Stock Still Does Not Look Cheap After Its 47% Rebound</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\">\nWorkday (WDAY) Stock Still Does Not Look Cheap After Its 47% Rebound\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-25 21:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nasdaq-wday/workday/news/workday-wday-stock-still-does-not-look-cheap-after-its-47-re><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Workday stock has rebounded sharply in the past month, while valuation checks are mixed. An intrinsic value estimate from a Discounted Cash Flow (DCF) model points to upside, whereas market multiples ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-wday/workday/news/workday-wday-stock-still-does-not-look-cheap-after-its-47-re\">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":"BK4548","symbol_name":"巴美列捷福持仓","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nasdaq-wday/workday/news/workday-wday-stock-still-does-not-look-cheap-after-its-47-re","article_id":"2662305377","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/workday-wday-stock-still-does-not-look-cheap-after-its-47-re","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2662305377","pubTimestamp":1787664103,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Workday stock has rebounded sharply in the past month, while valuation checks are mixed. An intrinsic value estimate from a Discounted Cash Flow (DCF) model points to upside, whereas market multiples suggest the shares are not cheap.\n\nThe stock is up 47.1% over the past month, which puts recent price action well ahead of its returns over longer periods.\nOngoing buyout talks with private equity firm Silver Lake and Workday's push into enterprise AI research can support optimism about future...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4548":"巴美列捷福持仓","BK4585":"ETF&股票定投概念","LU1823568750.SGD":"Fidelity Global Technology A-ACC SGD","LU1691799644.USD":"Amundi Funds Polen Capital Global Growth A2 (C) USD","LU1989763005.USD":"东方汇理教育基金A2 Acc","LU1804176565.USD":"EASTSPRING INV GLOBAL GROWTH EQUITY \"A\" (USD) ACC","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","WDAY":"Workday","BK4613":"AI应用软件","LU1235294995.USD":"FIDELITY GLOBAL TECHNOLOGY \"A\" (USDHDG) ACC","BK4581":"高盛持仓","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","BK4588":"碎股","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H","LU1046421795.USD":"富达环球科技A-ACC","LU1935042991.SGD":"MANULIFE GF GLOBAL MULTI-ASSET DIVERSIFIED INCOME  \"AA\" (SGDHDG) INC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","BK4528":"SaaS概念","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","BK4023":"应用软件","LU2517655028.SGD":"WELLINGTON NEXT GENERATION EDUCATION \"A\" (SGDHDG) ACC","LU1989773731.SGD":"CPR Invest - Education A2 Acc SGD-H","LU2517655291.USD":"WELLINGTON NEXT GENERATION EDUCATION \"A\" (USD) ACC","LU1935043536.SGD":"MANULIFE GF GLOBAL MULTI-ASSET DIVERSIFIED INCOME \"AA\" (SGDHDG) INC A","LU0082616367.USD":"摩根大通美国科技A（dist）","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","LU2517655374.HKD":"WELLINGTON NEXT GENERATION EDUCATION \"A\" (HKD) ACC"},"translate_title":"Workday (WDAY) 股票在反弹 47% 后看起来仍然不便宜","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"WDAY":1.5},"content_text":"Workday stock has rebounded sharply in the past month, while valuation checks are mixed. An intrinsic value estimate from a Discounted Cash Flow (DCF) model points to upside, whereas market multiples suggest the shares are not cheap.  The stock is up 47.1% over the past month, which puts recent price action well ahead of its returns over longer periods. Ongoing buyout talks with private equity firm Silver Lake and Workday's push into enterprise AI research can support optimism about future cash flows. However, any disruption to these plans or changing deal expectations may weigh heavily on what investors are willing to pay for the stock. Workday only passes 2 of 6 valuation checks on Simply Wall St's broader framework. This indicates that the stock leans expensive on several measures even though the DCF suggests it may be undervalued by 41.1%.  The issue now is whether investors should treat the recent rally and takeover interest as pricing Workday fairly or as leaving a margin between the current share price and the intrinsic value estimate. Find out why Workday's -10.9% return over the last year is lagging behind its peers. AdvertisementIs Workday Still Cheap on Cash Flow? The Discounted Cash Flow (DCF) method estimates what Workday is worth today based on the cash it can generate for shareholders in the future. Workday is currently generating trailing twelve month free cash flow of about $2.9b, and the model applies a growing cash flow profile over time using a 2 Stage Free Cash Flow to Equity approach. On this basis, the DCF points to an estimated intrinsic value of about $338 per share, which implies the stock is 41.1% undervalued relative to the current price. Because the Silver Lake buyout talks show how a financial buyer might value Workday, the gap between the DCF estimate and the market price provides a useful reference point for assessing that potential deal premium. Overall, the discounted cash flow analysis indicates that Workday stock currently appears undervalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests Workday is undervalued by 41.1%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks. WDAY Discounted Cash Flow as at Aug 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Workday. Is Workday Getting Expensive on Earnings? The P/E ratio is a useful cross check for Workday because earnings are a key focus for many software investors who want a quick read on what they are paying for each dollar of profit. Workday currently trades on a P/E of about 58.1x. That is above both the Software industry average of 31.1x and the peer group average of 53.5x. The fair P/E ratio implied by Simply Wall St's model is 42.6x, which is lower than where the stock trades now. This means the current share price embeds a premium to what the model would expect given Workday's growth profile, margins, size and risk, as well as a premium to broader software peers. The gap between the current multiple and the fair P/E indicates that investors are paying more for the stock on an earnings basis compared with these benchmarks. On the P/E multiple, Workday stock currently appears overvalued relative to both its tailored fair ratio and sector peers. NasdaqGS:WDAY P/E Ratio as at Aug 2026 See what the numbers say about this price — find out in our valuation breakdown. The Workday Narrative: What Would Justify Today's Price? Simply Wall St Narratives for Workday pick up where this valuation puzzle leaves off. They spell out the specific paths for Workday's growth, margins and earnings that would need to unfold for the stock to be worth materially more or less than today's price, based on different viewpoints. Each narrative links its number to a clear view on how growth, profitability and risk might evolve, which you can revisit on the Community page as new information comes through. Community views on Workday stock are split between a deep discount on intrinsic value and a tighter, earnings based reset. Bull case: 64% undervalued \"The core thesis is simple, three independent data sources, contracted backlog, realized free cash flow, and forward guidance, all moved in the same direction this quarter...\" Read the full Bull Case to see why Workday could be undervalued Bear case: 16% overvalued \"Rapidly evolving competition and regulatory complexity threaten Workday's pricing power, growth momentum, and profitability, while heavy investments may not yield corresponding efficiency improvements...\" Read the full Bear Case to see why Workday could be overvalued Do you think there's more to the story for Workday? Head over to our Community to see what others are saying! The Bottom Line For Workday, the Discounted Cash Flow (DCF) model points to meaningful upside, while the P/E based view shows the stock as overvalued relative to peers and its own tailored fair ratio. The split comes from what each lens prioritises. The intrinsic value estimate leans on future cash generation, funding needs and capital intensity, whereas the multiple view reflects current growth expectations, sentiment and where comparable software stocks trade. Since broader checks are weak overall, the key question is whether Workday can deliver the cash flow path implied by the DCF without disappointing on growth or deal execution. That tension is what drives the current bull versus bear debate.  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. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.48.0","shortVersion":"4.48.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2662305377","isCrawlerRequest":true}