WorkdayXSWX:WDAY 70 Debt-to-EBITDA is 2.21 as of Apr. 2026, which is 25% below its 10-year median of 2.95. GuruFocus rates XSWX:WDAY with a GF Score™ of 70/100 and a GF Value™ of CHF242.94. The stock has 3 warning signs investors should review. Among 1,704 Software companies, Workday ranks worse than 67.14% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Workday's Debt-to-EBITDA or its related term are showing as below:
XSWX:WDAY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -11.09 Med: 2.95 Max: 25.63
Current: 2.24
During the past 13 years, the highest Debt-to-EBITDA Ratio of Workday was 25.63. The lowest was -11.09. And the median was 2.95.
XSWX:WDAY's Debt-to-EBITDA is ranked worse than 67.14% of 1704
companies
in the Software industry
Industry Median: 1.1
vs XSWX:WDAY: 2.24
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Workday Debt-to-EBITDA Related Terms
Workday Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Workday's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Workday's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Workday Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Workday's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Workday's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
Workday (XSWX:WDAY) has a Debt-to-EBITDA of 2.21 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Workday. This is 25% below median its historical median of 2.95. According to the industry distribution chart, Workday ranks #1144 out of 1704 companies in the Software industry, placing it in the top 67.1%.
Is Workday's Debt-to-EBITDA too high?
Workday's current Debt-to-EBITDA of 2.21 is 25% below median its 10-year median of 2.95. The Software industry median Debt-to-EBITDA is 1.10. Workday's value of 2.21 is 100.9% above this industry median. Based on the distribution chart, Workday ranks #1144 out of 1704 companies in the Software industry, which is below the industry midpoint. Overall, Workday has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Workday's Debt-to-EBITDA compare to ?
According to the Software industry distribution chart, Workday ranks #1144 out of 1704 companies for Debt-to-EBITDA. This places Workday in the lower half of its industry. The industry median Debt-to-EBITDA is 1.10. Workday's value of 2.21 is 100.9% above this benchmark. While the company's 10-year median is 2.95 vs. the industry median of 1.10, Workday has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.10, based on 1,704 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Workday's current Debt-to-EBITDA of 2.21 is 100.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Workday. For the Software industry, the median Debt-to-EBITDA is 1.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Workday's current Debt-to-EBITDA is 2.21, which is 25% below median its own 10-year median of 2.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Workday stock overvalued right now?
Workday (XSWX:WDAY) has a current Debt-to-EBITDA of 2.21. The stock's GF Value™ is CHF242.94, compared to a current price of CHF106.52 — trading 56.2% below its estimated fair value. The current Debt-to-EBITDA is 2.21, which is 25% below median its 10-year median of 2.95 and 100.9% above the Software industry median of 1.10. Workday's overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Workday (XSWX:WDAY), the current Debt-to-EBITDA is 2.21 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Workday (XSWX:WDAY) Overvalued in 2026?
Based on GuruFocus' analysis, Workday stock appears to be undervalued.
The current stock price of CHF106.52 is trading 56.2% below its estimated GF Value™ of CHF242.94.
Key valuation signals for XSWX:WDAY:
Debt-to-EBITDA: 2.21 (25% below median its 10-year median of 2.95)
GF Value™: CHF242.94 vs. price of CHF106.52 (56.2% below fair value)
Industry Position: 100.9% above the Software median (#1144 of 1704)
No single metric tells the full story. See the XSWX:WDAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Workday is a software company that offers human capital management, financial management, and business planning solutions for enterprises. Known for being a cloud-only software provider, Workday was founded in 2005 and is headquartered in Pleasanton, California.
70GF Score
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