Market Pulse44Neutral

Workday, Inc.Opportunity Rank #113(WDAY) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$113.04

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$113.04
Price
$337.19
Intrinsic Value
Undervalued by 198%MOS: $269.75

Fundamental Score

79/100
Bullish

Weighted across 6 signals

Narrative Score

54/100
Weak

No change vs previous

Trend Score

14/100
Weak

As of 2026-06-22

The intrinsic value of Workday, Inc. (WDAY) is estimated at $337.19 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $113.04, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.91% long-term growth rate and a 9.00% discount rate (calculated: 8.72%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Workday, Inc. (WDAY) is estimated at $337.19 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $113.04, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.91% long-term growth rate and a 9.00% discount rate (calculated: 8.72%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$337.19
198.29% upside
20% margin of safety: $269.75
Years: 10Growth Rate: 9.91%
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Capital Efficiency

Average Quarterly ROIC
4.59%
Cost of Capital (estimated)9%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

79/100
BullishWeighted across 6 signals
DCF Discount
198.3% discount to price
100
FCF Yield
11.4% trailing FCF yield
100
ROIC vs WACC
ROIC 4.6% vs WACC 9.0% (0.5x)
26
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
17.3% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC.

Narrative Details

54/100
Weak
Vs 6-Month Baseline:Average (55th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 87%Updated: 1h ago
Sources: 78 (66 News · 12 Analyst)
Drivers(last 30 days)
57 news sentiment+0.4
Legal risk-0.2
4 regulatory scrutiny+0.2
3 earnings beat+0.1
Analyst downgrades-0.0
Layoffs-0.0

Trend Details

14/100
WeakAs of 2026-06-22308 daily bars used
Distance from 52-Week High-54.4%
6M Relative Strength vs SPY-58.5%
3M Relative Strength vs SPY-31.6%
Price vs 21 EMA3 · -13.0%
Price vs 50 EMA4 · -14.2%
21 EMA vs 50 EMA38 · -1.4%
3M RS vs SPY1 · -31.6%
6M RS vs SPY0 · -58.5%
Distance from 52W High0 · -54.4%

Investment Coach

Updating... 12d ago
BUYConfidence: 65%
Thesis
Workday, Inc. is significantly undervalued with an estimated fair value 148.9% above its current price, supported by strong fundamentals including a healthy free cash flow yield of 9.4%. Despite trailing returns relative to its cost of capital, the company demonstrates robust growth potential and solid financial health.
Key Risk
The negative spread between ROIC and WACC indicates potential challenges in generating returns above the cost of capital.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 9.91%5 Year CAGR: 17.29%

Free Cash Flow (in millions)

TTM2025202420232022202120202019201820172016201520142013201220112010
$3,384$2,733$2,387$2,017$1,923$1,525$1,109$820$618$469$392$206$122$27-$9-$12-$26

How Intrinziq Estimates Fair Value

Intrinziq estimates Workday, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Workday, Inc.Technology

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.