Stock analysis · Bull Rankings model

WDAY analysis

Workday, Inc. Class A Common StockSoftware - Application. Scored on the same transparent model behind the daily rankings.

Cloud & SaaS
WDAY
Workday, Inc. Class A Common Stock · Software - Application
FCF$3.0bB
Rev+13.3%B+
D/E0.57C+
P/E62.4xC
PEG0.78A-
68.7Score
$199.76$49.3B
1Y Target$182.29Analyst consensus · 38 analysts
5Y Target$266.89Compound horizon
10Y Target$395.91Long-dated conviction
FCF$3.0bTTM
B
FCF $3.0b — solid, comfortably covers operations and capital return
Rev+13.3%TTM YoY
B+
Revenue +13.3% — above sector median, healthy trajectory
D/E0.57
C+
D/E 0.57 — above the Technology debt median (≈75th pctile)
P/E62.4x
C
P/E 62.4 — expensive vs Technology peers (≈90th pctile)
PEG0.78
A-
PEG 0.78 — strong; Lynch's preferred zone

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 68.7
Quality57.9
Growth81.6
Value68.7
Why this score
  • Diluting shareholders
Entry · Margin of safety
52-week rangeMid-range
20% off the 12-month high
vs DCF fair value14% belowest. fair value ~$232
What the price assumes: free cash flow compounding at ~7% a year for the next decade — vs the ~17% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability60% · Agross profit ÷ total assets (Novy-Marx)
ROIC8.3% · Breturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Workday’s enterprise‑cloud financial management suite is entrenched in large‑scale corporate back‑offices, and its 13.3% FY revenue growth together with a PE of 53.2 and a free cash flow of $3.0B give the business a high‑margin, cash‑generating engine that can keep compounding. Our model’s strongest pillar – Growth at 87 – confirms that the spend‑management and finance‑automation platform will continue to win multi‑year contracts, driving compounding earnings. The thesis hinges on the ability to sustain this revenue acceleration while converting cash flow into shareholder returns.
Moat
Workday’s moat lies in its integrated financial and spend‑management applications that lock in enterprise customers through deep data integration and audit‑ready reporting, creating switching costs that are hard for best‑of‑breed rivals to match. The 12.7% ROE reflects pricing power derived from being the de‑facto platform for finance transformation in enterprise software, reinforcing durable cash conversion.
Risk
The bear case centers on the elevated valuation – a PE of 53.2 far above the sector average – which assumes continued high‑growth; any slowdown from the current 13.3% revenue pace would expose the premium. A debt‑to‑equity of 0.57 adds leverage risk if cash flow falters, and the Bull Rankings model flags diluting shareholder actions as a warning. A miss on revenue growth or a share‑issuance would confirm the downside and crush the bull thesis.
Horizon
1-3 yr $182.29 (38-analyst consensus) — fundamentals + valuation re-rating. 5 yr $266.89 at ~6% CAGR — compounding case rests on the competitive position widening. 10 yr $395.91 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

WDAY vs the Top Picks average

PillarWDAYBook avgDiff
Quality0.580.84-0.26
Growth0.820.84-0.02
Value0.690.78-0.10

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-7.0 over 47 daily scores
From 75.7 (Jun 22) → 68.7 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change-0.1%
90-day change+0.0%
Forward EPS estimate$12.64

Over the last 90 days, what analysts expect WDAY to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
10
Position size
$1,998
4.0% of portfolio
Stop price
$149.82
25% below $199.76
$ at risk if stopped
$499.40
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Workday, Inc. Class A Common Stock (WDAY): score, valuation & FAQ

Workday, Inc. Class A Common Stock (WDAY) is a Software - Application company that scores 68.7 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are PEG (A-) and Rev (B+). On valuation, WDAY sits about 14% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 7% annual free-cash-flow growth over the next decade.

Is WDAY a good stock to buy?

Bull Rankings scores WDAY 68.7 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by PEG (A-) and Rev (B+). A score is a quantitative screen of Workday, Inc. Class A Common Stock's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does WDAY score 68.7 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). WDAY earns its highest marks on PEG (A-) and Rev (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is WDAY overvalued or undervalued?

Based on $199.76, WDAY sits about 14% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 7% annual free-cash-flow growth over the next decade. It trades at a 62.4x P/E (graded C). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in WDAY?

The bear case centers on the elevated valuation – a PE of 53.2 far above the sector average – which assumes continued high‑growth; any slowdown from the current 13.3% revenue pace would expose the premium. A debt‑to‑equity of 0.57 adds leverage risk if cash flow falters, and the Bull Rankings model flags diluting shareholder actions as a warning. A miss on revenue growth or a share‑issuance would confirm the downside and crush the bull thesis.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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