Workday's cloud-native platform deeply embeds HR and finance processes. This creates significant switching costs for enterprises, making it difficult and expensive to migrate away.

↑AI Agent Ecosystem Development

New tools for developers to build and verify AI agents on Workday, coupled with Agent Passport for monitoring, foster a proprietary ecosystem. This enhances platform stickiness and innovation.

↑Governed Data Cloud Access

Integration with AWS for zero-copy, bi-directional access to Workday's governed HR and finance data empowers developers. This unlocks advanced AI and analytics capabilities within their ecosystem.

INVESTMENT RISKS

↓Intense Competition

The enterprise software market is highly competitive, with established players and emerging startups vying for market share. Workday faces pressure from both sides.

↓AI Development Pace

While Workday is investing in AI, the rapid evolution of AI technology means they must constantly innovate to stay ahead. Falling behind could erode their competitive edge.

↓Data Security & Privacy

Handling sensitive HR and finance data necessitates robust security and privacy measures. Any breaches or compliance failures could severely damage trust and reputation.

Base case

WDAY base case PE valuation

A base case PE valuation for WDAY estimates a fair value of about $141.01 per share, against a current price of $130.8. The model assumes 9.1% annual earnings growth, a 39x target PE multiple, and a 10% discount rate.

Intrinsic Value

$141.01

Margin of safety

+7.2%

Expected annual return

+1.5%

Base case assumptions: 9.1% annual earnings growth, 39x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.

Customize the WDAY PE valuation

Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Workday, Inc. respond.

Open PE Calculator for WDAY

Or try DCF Valuation for WDAY →

Company Overview

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.

Financial Metrics — WDAY PE Stock Valuation Data

PE Ratio (TTM)

39.2x

PEG Ratio

0.52

Earnings Yield

2.55%

ROE (TTM)

10.4%

Revenue/Share (TTM)

$38.81

Debt/Equity

0.57x

Frequently Asked Questions

What is the PE ratio of WDAY?

The trailing twelve-month PE ratio of WDAY reflects how much investors pay per dollar of Workday, Inc.'s earnings. This metric is most useful when compared to Software - Application peers and the company's own historical range.

Is WDAY overvalued based on PE ratio?

WDAY's PE of 39.2x combined with a PEG ratio of 0.52 provides a growth-adjusted perspective. A PEG below 1.0 suggests WDAY may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Software - Application, a DCF analysis may be more appropriate.

How do I value WDAY stock using PE ratio?

To value Workday, Inc. using PE: (1) Compare the current PE (39.2x) against the Software - Application median to assess relative pricing, (2) check the PEG ratio (0.52) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.

What is the PEG ratio of WDAY?

WDAY's PEG ratio is 0.52, calculated by dividing the PE ratio (39.2x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.

Should I use PE ratio or DCF for WDAY stock valuation?

PE ratio gives a quick relative read — how WDAY is priced versus Software - Application peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.

Learn More

See WDAY DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
PE Methodology — Step-by-step guide to PE ratio stock valuation
DCF Methodology — Guide to discounted cash flow analysis
PE Ratio — Understanding the price-to-earnings ratio
Intrinsic Value — How to evaluate stock fair value

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P/E and DCF value WDAY with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.