Workday Inc (WDAY) Fair Value & Analysis
Technology · US · Market cap $34.5B · ISIN US98138H1014
What is Workday Inc really worth?
Workday Inc
WDAY · US
A solid business, but trading 114% above our fair value of $96.54.
Strengths
Risks
Fair value as of: Aug 29, 2026
From 24 valuation models · updated 6 days ago
Share price +20.8% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($120.67). The favourable scenario is already priced in.
- Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.
How to read this chart
60‑month range $112.50 – $307.21 · fair‑value band $72.40 – $120.67 · the $206.92 price screens above the $96.54 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.
Analysis
Workday Inc (WDAY) currently trades at $206.92, while our model-based Fair Value estimate is $96.54, implying the stock looks roughly 114.3% overvalued today. The Quality Score stands at 69/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of $220.15 per share, and 7 of the 24 models we run sit above the $206.92 price. Bear case: the Asset-Based group reads lowest at $26.02, and 17 of the 24 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, Workday Inc generated revenue of $9.9B at a net margin of 8.6%. Revenue grew 13.5% year over year. It earns a return on equity of 10.9%. Net debt stands at $2.3B. Fundamentals as of Aug 29, 2026
Our scenario range runs from $72.40 (bear case) to $120.67 (bull case); at $206.92, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 20% below its 52-week high and 87% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −38% fair-value upside, at −53%, WDAY screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2026 figures, and about 7 months have passed since. In that time the company retained roughly $1.90 per share, which is 2.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: DCF Models ($220.15) versus Asset-Based ($26.02). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 70 · Market factors (momentum, volatility) 50
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; perform financial consolidation; …
Full company description
Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; perform financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contract management, build and execute sourcing events, such as requests for proposals, and manage indirect spend; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; Workday Extend for customers and their developers to build custom applications. The company serves the professional and business services, financial services, healthcare, manufacturing, media, education, government, technology, media, retail, and hospitality industries. It sells its solutions through its direct sales organization. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Workday Inc reported revenue of $9.6B in FY2026 versus $5.1B in FY2022, a compound +16.8%/yr. Reported net income was $693M in FY2026, compounding +121.1%/yr from FY2022. FY2022 was a trough year, so the rate overstates the trend.
WDAY screens 114% overvalued. Compare with SAP SE →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Workday (WDAY) Stock Could Be A Bargain On Cash Flow Yet Fair On Earnings
- How AI-Driven Subscription Gains and New Buyback Plan May Shape Workday (WDAY) Investors
- Workday (WDAY) Says AI Drove 25% of New Annual Contract Value. Why Did Total Subscription Backlog Grow Only 8%?
- Why Is Workday (WDAY) Stock Soaring Today
Peer Group
Software - Application · 691 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Software - Application median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SAP SE SAP | €191.32 | €169.59 | −11% |
| Shopify Inc SHOP | C$209.78 | C$28.76 | −86% |
| Uber Technologies, Inc UBER | $78.82 | $43.66 | −45% |
| Salesforce, Inc CRM | $252.05 | $249.28 | −1% |
| ServiceNow, Inc NOW | $138.43 | $43.73 | −68% |
| Cadence Design Systems, Inc CDNS | $340.39 | $112.57 | −67% |
| Snowflake Inc SNOW | $329.11 | $42.27 | −87% |
| Adobe Inc ADBE | $289.15 | $454.04 | +57% |
| Automatic Data Processing, Inc ADP | $284.68 | $177.51 | −38% |
| Intuit Inc INTU | $348.00 | $363.46 | +4% |
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