---
title: Western Digital (WDC) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/wdc
ticker: WDC
as_of: 2026-10-17
sector: Technology
industry: Computer Hardware
---
# Western Digital (WDC)

Western Digital (WDC) closed at $332.00 on Oct 16, 2026, overvalued by 322% vs its model value of $78.65 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $332.00 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $78.65 |
| Price vs model | overvalued by 322% vs model |
| Range of that model | $59.82 – $113.80 |
| Market value | $124.3B |
| P/E (fiscal 2026) | 13.7 |
| Net margin (fiscal 2026) | 72.9% |
| Free cash flow (fiscal 2026) | $3.5B |
| Dividend yield (trailing twelve months) | 0.17% |
| Beta | 2.17 |
| Cost of capital (WACC) | 12.49% |
| Business classification | Cyclical (Revenue declining (~-0% recent), High profitability (73% net margin), Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Best performing this year | #18 | +92.7% | https://sweetvaluelab.com/lists/best-performing-this-year |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 0.17% |
| Dividends per share, last 12 months | $0.55 |
| Dividends / free cash flow (fiscal 2026) | 5.0% |
| Raised | — |
| Growth over 1 years | -42.4% a year |
| Latest payment | $0.15, ex-date Sep 8, 2026, paid Sep 17, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Sep 4, 2025 | $0.96 |
| Trailing twelve months (to Sep 8, 2026) | $0.55 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $78.65 | $59.82 | $113.80 |
| DCF · Perpetuity growth · 10y | cross check | $124.77 | $92.96 | $184.32 |
| DCF · EBITDA exit · 5y | cross check | $74.77 | $32.82 | $124.38 |
| DCF · EBITDA exit · 10y | cross check | $117.67 | $61.46 | $194.25 |
| P/E · peers | cross check | $206.80 | $179.91 | $233.69 |
| P/E · own history | cross check | $351.53 | $149.65 | $523.75 |
| PEG | sanity check | $513.13 | $513.13 | $513.13 |
| EV/EBITDA · peers | cross check | $110.74 | $93.62 | $127.85 |
| EV/Revenue · peers | cross check | $22.52 | $18.63 | $26.41 |
| Earnings power value | cross check | $20.46 | $18.41 | $23.06 |
| Dividend discount | cross check | $8.03 | $6.13 | $10.68 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 3 open-market sales ($1.9M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 17, 2026 | Tregillis Cynthia L | Chief Legal Officer & Corp Sec | Grant / award | 27.38 | $0 |
| Sep 20, 2026 | Tan Irving | Chief Executive Officer | Option/RSU exercise | 56.762 | $0 |
| Sep 20, 2026 | Tan Irving | Chief Executive Officer | Tax withholding | 1,091.035 | $481,539.2 |
| Sep 17, 2026 | Tan Irving | Chief Executive Officer | Grant / award | 83.3 | $0 |
| Sep 20, 2026 | Tan Irving | Chief Executive Officer | Option/RSU exercise | 56.762 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 5, 2026 | ARS | Annual report to shareholders | https://www.sec.gov/Archives/edgar/data/106040/000162828026064921/wdc015705-ars.pdf |
| Oct 5, 2026 | DEFA14A | Additional proxy materials | https://www.sec.gov/Archives/edgar/data/106040/000162828026064914/a2026wdnoticeaccess.htm |
| Oct 5, 2026 | DEF 14A | Proxy statement | https://www.sec.gov/Archives/edgar/data/106040/000162828026064909/wdc-20261005.htm |
| Sep 14, 2026 | 8-K | 7.01 Regulation FD Disclosure; 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/106040/000119312526389859/d23939d8k.htm |
| Aug 27, 2026 | 8-K | 3.02 Unregistered Sale of Equity | https://www.sec.gov/Archives/edgar/data/106040/000119312526371309/d482249d8ka.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Bridgewater | 2026-06-30 | 172,415 | $110.1M |
| Lee Ainslie | 2026-06-30 | 1,882 | $1.2M |

2 tracked managers in all.

## About

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 b…

---

Source: https://sweetvaluelab.com/stocks/wdc (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.