* Note: Prices are in Million (M) USD.
Description:
Workday, Inc. provides business applications in the cloud worldwide. The company is headquartered in Pleasanton, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,264 M
Debt : $791 M
EBITDA : $1,040 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Services-computer processing & data preparation
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 23.34
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 16 overlapping fiscal years (max 20).Average Free Cash Flow: $585 M
Average Revenue: $2,772 M
Revenue Converted To Free Cash Flow (%): 21.1%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $8,416 M
Revenue 4 Years Ago (2021-01-31): $4,299 M
Last 5 Years Average Revenue Growth: 19%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $269 M
Share Count 5 Years Ago (2021-01-31): $237 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $10.58
Trailing 12-Month Earnings Per Share (EPS): $9.00
Average Earnings Per Share (EPS): $9.79
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 13 valid ROE years (max 20).Average ROE: -13.1%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $229
52-Week Low: $205
Threshold Price (15% Above 52-Week Low): $236
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $59,555 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 26 points to above Workday Inc (WDAY) stock.
Last 2 Years Avg PE 40, Fair Value PE 25, Industry Based PE 20, Growth Based PE 19, RCFC Based PE 28.88, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 22.85. Value-Trades has assined P/E value 22.85. Since an average (Current Year EPS + Next Year EPS) earning per share is $9.79.
The fair value of Workday Inc (WDAY) stock should be (22.85 x $9.79) = $223.72.
