Market Pulse50Neutral

Workday, Inc.Opportunity Rank #43(WDAY) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$137.06

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$137.06
Price
$298.40
Intrinsic Value
Undervalued by 118%MOS: $238.72

Fundamental Score

79/100
Bullish

Weighted across 6 signals

Narrative Score

54/100
Weak

+1 vs previous

The intrinsic value of Workday, Inc. (WDAY) is estimated at $298.40 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $137.06, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.85% long-term growth rate and a 9.07% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Workday, Inc. (WDAY) is estimated at $298.40 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $137.06, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.85% long-term growth rate and a 9.07% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$298.40
117.71% upside
20% margin of safety: $238.72
Years: 10Growth Rate: 9.85%
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Capital Efficiency

Average Quarterly ROIC
4.06%
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
117.7% discount to price
100
FCF Yield
8.5% trailing FCF yield
100
ROIC vs WACC
ROIC 4.1% vs WACC 9.0% (0.5x)
23
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
15.3% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC.

Narrative Details

54/100
Weak
+1 vs previous · +1 new driversVs 6-Month Baseline:Above Avg (71st pct)Weighted across 6 recent drivers
Trend: Deteriorating downConfidence: 93%Updated: 54m ago
Sources: 157 (119 News · 38 Analyst)
Drivers(last 30 days)
88 news sentiment+0.4
3 earnings beat+0.1
3 analyst downgrades-0.1
2 downgrade headlines-0.0
23 regulatory scrutiny+0.0
Analyst upgrades+0.0

Investment Coach

Updated 13h ago
BUYConfidence: 65%
Thesis
Workday, Inc. is significantly undervalued with an estimated fair value 120.9% above its current price, supported by strong fundamentals including a healthy free cash flow yield of 8.5%. Despite trailing returns relative to cost of capital, the company shows bullish indicators and improving narrative confidence.
Key Risk
The key risk is the negative spread between ROIC and WACC, indicating returns are currently below the cost of capital, which could pressure valuation if not improved.
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: 9.85%5 Year CAGR: 15.25%

Free Cash Flow (in millions)

TTM2025202420232022202120202019201820172016201520142013201220112010
$3,101$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. provides enterprise cloud applications in the United States and internationally. The company's applications help its customers to plan, execute, analyze, and extend to other applications and environments, and to manage their business and operations. It offers a suite of financial management applications, which enable chief financial officers to maintain accounting information in the general ledger; manage financial processes; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. The company also provides cloud spend management solutions that helps organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; Human Capital Management (HCM) solution, a suite of human capital management applications that allows organizations to manage the entire employee lifecycle from recruitment to retirement, and enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences; Workday applications for planning; and applications for analytics and reporting, including augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. It serves professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. 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.