Is Workday Inc (WDAY) overvalued?
On Equity Rank's model estimate, WDAY trades close to its fair value (6% above it). Workday Inc (WDAY) last closed at $192.90; the multi-method model fair value is $182.85.
| Price | Model fair value | Price vs model |
|---|---|---|
| $192.90 | $182.85 | 6% above |
What the answer rests on
- 1 of 8 valuation methods put WDAY's value above its price and 7 put it below, so the methods mostly agree.
- To justify today's price, WDAY's free cash flow would need to grow about 4.6% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 28.9% a year.
- Over the past year the price sat below the model fair value on 42% of trading days. The gap ranged from 31% below to 21% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind WDAY's fair value · What prices assume · Other companies