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Western Digital Corporation — Intrinsic Value & Fair Price

WDC
NASDAQTechnologyComputer HardwareCIK 0000106040westerndigital.comAbout WDC
Last close · Oct 16, 2026332.00−24.45 (−6.86%)
Market cap$124.3B
Model value · DCF · Perpetuity growth · 5y
78.65
Western Digital closed at $332.00 — overvalued by 322% vs model.
59.82the model's range113.80

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

Other models
8.03 – 513.13
Wall St. target
590.00 44% below
Above model, 1y
78 of 78 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
0.17%
Past 2 years
low 0.07%high 1.06%
Dividends per share, a year at a time
$0.96Sep ’25$0.55TTM
Dividends / free cash flow, FY2026
5.0%
Raised
—
Growth, 1 yr
-42.4% a year
Last change
+20.0% · Jun 2026
Every payment, with ex-dates · latest $0.15, paid Sep 17, 2026

Research on WDC

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How it is valued

Valued asCyclical
Revenue declining (~-0% recent)High profitability (73% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2026 · chosen for cyclical companies
P/E
13.7×
EV / EBITDA
12.0×
FCF yield
3.1%
Dividend yield, TTM
0.17%
Beta
2.17
Cost of capital (WACC)
12.49%
Full financials

Analyst actions

third-party, quoted
10-16Wells Fargo · target450.00
10-12UBS · target470.00
08-06Morgan Stanley · target676.00
05-01JP Morgan · “Overweight” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label

The weekly

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About Western Digital

Western Digital Corporation designs, manufactures, and markets a broad range of data storage devices and software solutions across the United States, China, Hong Kong, Europe, the Middle East, Africa, and the rest of Asia, serving an international market. The company's product lineup includes client devices such as hard disk drives (HDDs) and solid-state drives (SSDs) for computing platforms like desktops, notebooks, smart video systems, gaming consoles, and set-top boxes. They also provide flash-based embedded storage solutions for mobile phones, tablets, laptops, and various portable and wearable technologies, extending into automotive, Internet of Things (IoT), industrial, and connected home applications. Additionally, Western Digital produces flash-based memory wafers. For data centers, their offerings comprise enterprise helium hard drives and sophisticated flash-based SSDs, often bundled with software tailored for enterprise servers, online transaction processing, data analysis, and other business applications. This segment also includes comprehensive data storage systems, tiered storage models, and various data storage platforms. Consumer-oriented client solutions consist of external HDDs in both mobile and desktop configurations, portable SSDs, and removable memory cards compatible with mobile phones, tablets, imaging systems, cameras, and smart video systems. Furthermore, they offer universal serial bus (USB) flash drives for computing and general consumer markets, alongside wireless drive products designed for on-the-go content backup and high-definition streaming of media and documents to tablets, smartphones, and PCs. Western Digital sells its diverse portfolio through original equipment manufacturers (OEMs), distributors, dealers, resellers, and retailers, utilizing its prominent G-Technology, SanDisk, and WD brands. Founded in 1970, the corporation is headquartered in San Jose, California.

CEO
Tiang Yew Tan
Headquarters
San Jose, CA
Employees
40,000
IPO
1978-10-31
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.