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Workday, Inc. — Intrinsic Value & Fair Price

WDAY
NASDAQTechnologySoftware - ApplicationCIK 0001327811workday.comAbout WDAY
Last close · Oct 16, 2026190.81−5.82 (−2.96%)
Market cap$46.0B
Model value · DCF · Perpetuity growth · 5y
43.46
Workday closed at $190.81 — overvalued by 339% vs model.
26.52the model's range99.96

DCF · Perpetuity growth · 5y leads for a software company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
53.54 – 287.72
Wall St. target
217.00 12% below
Above model, 1y
19 of 20 days

Price and model value

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What the marks mean
Daily close

Valuation models

price $190.81 · as of Oct 17, 2026

DCF · Perpetuity growth · 5y leads for a software company — positive operating income and three years of positive free cash flow. How we value a stock walks through every input. The price is 339% above the model value: the models see only the filed business, and a company priced on businesses with no revenue line yet is better taken apart, as Tesla is.

engine pkg:0.1.0

Research on WDAY

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How it is valued

Valued asSoftware
Moderate growth (~15% recent)Moderate margins (7% net margin)Highly cyclical earningsStrong FCF yield (6.0%)
What growth the price implies: the reverse DCF

Key figures

FY2026 · chosen for software companies
Price / sales
5.2×
Revenue growth
13.1%
Gross margin
75.7%
FCF margin
29.1%
Rule of 40
42.2%
Operating margin
10.7%
Full financials

Analyst actions

third-party, quoted
10-15UBS · target175.00
10-14Mizuho Securities · target210.00
10-08Jefferies · target210.00
08-28Freedom Broker · “Hold” from “Buy”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
3 more companies list WDAY as a comparable
Side by side:vs NOW

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just WDAY. No account.

About Workday

Workday, Inc. delivers comprehensive, cloud-hosted enterprise software solutions to clients worldwide. These platforms empower organizations to strategize, operate, examine performance, integrate with existing systems, and oversee their overall business functions. A core offering includes a robust suite of financial management tools. These are designed to assist Chief Financial Officers (CFOs) in meticulously maintaining general ledger accounting data, streamlining financial workflows, gaining instant insights into financial and operational metrics, optimizing consolidation, accelerating month-end closes, bolstering internal controls and audit readiness, and ensuring uniformity throughout their financial activities. Workday also provides cloud-based spend management solutions. These facilitate smoother supplier engagement and contract administration, optimize the handling of indirect expenditures, and enable the effective execution of sourcing initiatives, including requests for proposals (RFPs). Its Human Capital Management (HCM) platform stands out, offering a comprehensive set of applications for overseeing the entire employee journey—from initial recruitment through to retirement. This empowers HR departments to efficiently handle hiring, onboarding, payroll, talent development, reskilling programs, and to cultivate exceptional employee experiences. Furthermore, the company offers dedicated applications for business planning, alongside powerful analytics and reporting capabilities. These advanced tools feature augmented analytics that translate complex data into easily digestible narratives for business users, leverage machine learning for enhanced operational efficiency and automation, and provide benchmarking features to compare performance against industry peers. Workday's diverse clientele spans numerous sectors, including professional and business services, financial institutions, healthcare providers, educational bodies, government agencies, technology firms, media organizations, retailers, and the hospitality industry. Originally incorporated in 2005 as North Tahoe Power Tools, Inc., the company adopted the name Workday, Inc. in July of the same year. Its corporate headquarters are located in Pleasanton, California.

CEO
Aneel Bhusri
Headquarters
Pleasanton, CA
Employees
20,896
IPO
2012-10-12
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.