* Note: Prices are in Million (M) USD.
Description:
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,114 M
Debt : $4,711 M
EBITDA : $1,913 M
Net Debt (Debt - Cash): $2,597 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Data storage
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: 12.18
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $1,099 M
Average Revenue: $12,942 M
Revenue Converted To Free Cash Flow (%): 8.5%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-06-30): $9,520 M
Revenue 4 Years Ago (2021-06-30): $16,922 M
Last 5 Years Average Revenue Growth: -9%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-06-30): $359 M
Share Count 5 Years Ago (2021-06-30): $309 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): $6.81
Trailing 12-Month Earnings Per Share (EPS): $6.66
Average Earnings Per Share (EPS): $6.74
Dividend Per Share (DPS): $0
Payout Ratio: 1%
Dividend Yield: 0%
Since company Payout Ratio is less than 50, 2 points 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 20 valid ROE years (max 20).Average ROE: 12.6%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $82
52-Week Low: $29
Threshold Price (15% Above 52-Week Low): $33
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $26,040 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 21 points to above Western Digital Corporation (WDC) stock.
Last 15 Years Avg PE 12.27, Fair Value PE 25, Industry Based PE 16, RCFC Based PE 16.79, ROE Based PE 20.09, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 6 values, average assigned is 17.87. Value-Trades has assined P/E value 17.87. Since an average (Current Year EPS + Next Year EPS) earning per share is $6.735.
The fair value of Western Digital Corporation (WDC) stock should be (17.87 x $6.735) = $120.37.
