On July 29, 2026, Workday Inc WDAY shares rose 5.2% to $168.01, marking a significant rebound in the stock's price performance. The stock has seen a 52-week range between $110.36 and $249.85, indicating volatility over the past year.
- GF Valueâ„¢ verdict: $168.01 vs $317.13, 47.0% undervalued
- GF Scoreâ„¢: 70/100, indicating above-average performance
- Most notable signal: Insiders sold $144.2M in the last 3 months (no buying)
Is WDAY Overvalued or Undervalued?
According to the GF Valueâ„¢, Workday Inc is significantly undervalued, with a current price of $168.01 compared to the estimated fair value of $317.13. This indicates a margin of safety of 47.0%. Such a substantial difference between the market price and the intrinsic value suggests that there may be a compelling investment opportunity for those who are willing to understand the risks involved. GF Valueâ„¢ is GuruFocus' proprietary estimate of a stock's intrinsic value based on historical trading multiples, historical business growth, and future performance expectations.
While the undervaluation may attract attention, it is essential to consider the broader context, including recent stock performance and insider activity. The recent sell-off by insiders, totaling $144.2 million, raises some questions about their confidence in the company's future prospects. This caution from insiders could suggest potential risks that investors should evaluate closely before making decisions.
How Does WDAY's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 52.5x | 92.1x |
| Forward P/E | 15.8x | - |
The current P/E (TTM) of 52.5x is notably lower than the 5-year median P/E of 92.1x, indicating that the stock is trading at a significantly reduced valuation compared to its historical trading levels. This analysis aligns with the GF Valueâ„¢ assessment of Workday Inc being undervalued, suggesting that investors may have a favorable risk-reward proposition.
What Does WDAY's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ is a composite measure that evaluates a stock based on various factors, including financial strength, profitability, growth, valuation, and momentum. Workday Inc's GF Scoreâ„¢ of 70/100 reflects above-average performance, with strong growth prospects but lower valuation and momentum indicators.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 70 |
| Financial Strength | 7/10 |
| Profitability | 5/10 |
| Growth | 10/10 |
| Valuation | 2/10 |
| Momentum | 2/10 |
Workday Inc shows outstanding growth potential with a growth rank of 10/10, indicating robust business expansion. However, the valuation and momentum ranks of 2/10 point to significant concerns in these areas, suggesting that while the company may have strong growth prospects, its current valuation does not reflect that momentum.
What Are Gurus and Insiders Doing with WDAY?
Currently, 10 gurus hold positions in Workday Inc, with 6 adding to their stakes and 8 trimming their positions in recent quarters. This mixed activity among institutional investors indicates varied sentiments about the company's future prospects. The fact that more gurus are trimming their positions than adding could suggest a cautious outlook among seasoned investors.
In addition to the guru activity, insider selling of $144.2 million in the last three months, without any buying, raises concerns about the company's future performance. This trend may imply that insiders lack confidence in the current valuation or future growth, which potential investors should take into account when evaluating the stock.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, Workday Inc is currently undervalued, presenting a potential investment opportunity for those willing to consider the associated risks. However, caution is warranted due to the significant insider selling and the mixed signals from guru activity. Interested parties should carefully analyze the stock's fundamentals before making decisions.
For a detailed analysis, visit the Workday Inc WDAY stock page, and explore further insights on the GF Valueâ„¢ page or the GuruFocus Stock Screener.
Frequently Asked Questions
What is WDAY's GF Scoreâ„¢?
Workday Inc has a GF Scoreâ„¢ of 70/100, indicating above-average performance relative to its peers.
Is WDAY overvalued or undervalued?
WDAY is currently undervalued, with a GF Valueâ„¢ estimate suggesting a 47.0% upside based on its intrinsic value compared to the current market price.
What is WDAY's P/E ratio?
WDAY has a P/E (TTM) of 52.5x, which is significantly below its 5-year median of 92.1x, indicating it is trading at a lower valuation than in the past.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
