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Western DigitalCHIX:WDCD 50 Degree of Operating Leverage is 16.17 as of Jun. 2026. GuruFocus rates CHIX:WDCD with a GF Score™ of 50/100 and a GF Value™ of €90.78 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,431 Hardware companies, Western Digital ranks worse than 88.93% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Western Digital's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 16.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Western Digital's Degree of Operating Leverage or its related term are showing as below:
CHIX:WDCd's Degree of Operating Leverage is ranked worse than 88.93% of 2431
companies
in the Hardware industry
Industry Median: 1.12
vs CHIX:WDCd: 16.17
Western Digital (CHIX:WDCd) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Western Digital Degree of Operating Leverage Related Terms
Western Digital Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Western Digital's Degree of Operating Leverage 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.
Western Digital Degree of Operating Leverage Chart
CHIX:WDCD vs STX, SNDK, ANET: Degree of Operating Leverage Comparison
For the Computer Hardware subindustry, Western Digital's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
Western Digital Degree of Operating Leverage vs Hardware Industry
For the Hardware industry and Technology sector, Western Digital's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Western Digital's Degree of Operating Leverage 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 16.17 mean?
Western Digital (CHIX:WDCD) has a Degree of Operating Leverage of 16.17 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Western Digital and its competitors. According to the industry distribution chart, Western Digital ranks #2162 out of 2431 companies in the Hardware industry, placing it in the top 88.9%.
Is Western Digital's Degree of Operating Leverage too high?
Western Digital's current Degree of Operating Leverage is 16.17. The Hardware industry median Degree of Operating Leverage is 1.12. Western Digital's value of 16.17 is 1343.8% above this industry median. Based on the distribution chart, Western Digital ranks #2162 out of 2431 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Western Digital has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Western Digital's Degree of Operating Leverage compare to STX and SNDK?
According to the Hardware industry distribution chart, Western Digital ranks #2162 out of 2431 companies for Degree of Operating Leverage. This places Western Digital in the lower half of its industry. The industry median Degree of Operating Leverage is 1.12. Western Digital's value of 16.17 is 1343.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Hardware company?
The median Degree of Operating Leverage among Hardware companies is 1.12, based on 2,431 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Western Digital's current Degree of Operating Leverage of 16.17 is 1343.8% 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 Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Western Digital and its competitors. For the Hardware industry, the median Degree of Operating Leverage is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Digital's current Degree of Operating Leverage is 16.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Digital stock overvalued right now?
Based on GuruFocus' analysis, Western Digital (CHIX:WDCD) is currently considered Significantly Overvalued. The stock's GF Value™ is €90.78, compared to a current price of €401.50 — trading 342.3% above its estimated fair value. The current Degree of Operating Leverage is 16.17 and 1343.8% above the Hardware industry median of 1.12. Western Digital's overall GF Score™ is 50/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Western Digital (CHIX:WDCD), the current Degree of Operating Leverage is 16.17 as of Jun. 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 Western Digital (CHIX:WDCD) Overvalued in 2026?
Based on GuruFocus' analysis, Western Digital stock appears to be overvalued.
The current stock price of €401.50 is trading 342.3% above its estimated GF Value™ of €90.78.
GuruFocus considers Western Digital to be Significantly Overvalued.
Key valuation signals for CHIX:WDCD:
Degree of Operating Leverage: 16.17
GF Value™: €90.78 vs. price of €401.50 (342.3% above fair value)
Industry Position: 1343.8% above the Hardware median (#2162 of 2431)
No single metric tells the full story. See the CHIX:WDCD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Digital is a leading vertically integrated supplier of hard disk drives. The HDD market is a practical duopoly, with Western Digital and Seagate being the two largest players. Western Digital designs and manufactures its HDDs, with much of the manufacturing and workforce located in Asia. The primary consumers of HDDs are data centers.
50GF Score
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