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WorkdayWDAY +5.84%70 EV-to-EBITDA is 19.03 as of Jul. 25, 2026, which is 58% below its 10-year median of 45.27. GuruFocus rates WDAY with a GF Score™ of 70/100 and a GF Value™ of $316.59 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,957 Software companies, Workday ranks worse than 68.98% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Workday's enterprise value is $32,877 Mil.
Workday's EBITDA for the trailing twelve months (TTM) ended in Apr. 2026 was $1,728 Mil. Therefore, Workday's EV-to-EBITDA for today is 19.03.
The historical rank and industry rank for Workday's EV-to-EBITDA or its related term are showing as below:
WDAY'
s EV-to-EBITDA Range Over the Past 10 Years
Min: -866.22 Med: 45.27 Max: 2125.32
Current: 19.03
During the past 13 years, the highest EV-to-EBITDA of Workday was 2125.32. The lowest was -866.22. And the median was 45.27.
WDAY's EV-to-EBITDA is ranked worse than 68.98% of 1957
companies
in the Software industry
Industry Median: 10.33
vs WDAY: 19.03
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Workday (NAS:WDAY) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Workday's share price for today is $135.34.
Workday's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.200.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Workday's EV-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 EV-to-EBITDA, along with its competitors' market caps and EV-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 EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Workday's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Workday's EV-to-EBITDA falls into.
Workday's current Enterprise Value is $32,877 Mil.
Workday's EBITDA for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,728 Mil.
* 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.
Workday (WDAY) has a EV-to-EBITDA of 19.03 as of Jul. 25, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Workday. This is 58% below median its historical median of 45.27. According to the industry distribution chart, Workday ranks #1350 out of 1957 companies in the Software industry, placing it in the top 69%.
Is Workday's EV-to-EBITDA too high?
Workday's current EV-to-EBITDA of 19.03 is 58% below median its 10-year median of 45.27. The Software industry median EV-to-EBITDA is 10.33. Workday's value of 19.03 is 84.2% above this industry median. Based on the distribution chart, Workday ranks #1350 out of 1957 companies in the Software industry, which is below the industry midpoint. Overall, Workday has a GF Score™ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Workday's EV-to-EBITDA compare to MSTR and FICO?
According to the Software industry distribution chart, Workday ranks #1350 out of 1957 companies for EV-to-EBITDA. This places Workday in the lower half of its industry. The industry median EV-to-EBITDA is 10.33. Workday's value of 19.03 is 84.2% above this benchmark. While the company's 10-year median is 45.27 vs. the industry median of 10.33, 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 EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.33, based on 1,957 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Workday's current EV-to-EBITDA of 19.03 is 84.2% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Workday. For the Software industry, the median EV-to-EBITDA is 10.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Workday's current EV-to-EBITDA is 19.03, which is 58% below median its own 10-year median of 45.27. 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?
Based on GuruFocus' analysis, Workday (WDAY) is currently considered Significantly Undervalued. The stock's GF Value™ is $316.59, compared to a current price of $135.34 — trading 57.3% below its estimated fair value. The current EV-to-EBITDA is 19.03, which is 58% below median its 10-year median of 45.27 and 84.2% above the Software industry median of 10.33. 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 EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Workday (WDAY), the current EV-to-EBITDA is 19.03 as of Jul. 25, 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 (WDAY) Overvalued in 2026?
Based on GuruFocus' analysis, Workday stock appears to be undervalued.
The current stock price of $135.34 is trading 57.3% below its estimated GF Value™ of $316.59.
GuruFocus considers Workday to be Significantly Undervalued.
Key valuation signals for WDAY:
EV-to-EBITDA: 19.03 (58% below median its 10-year median of 45.27)
GF Value™: $316.59 vs. price of $135.34 (57.3% below fair value)
Industry Position: 84.2% above the Software median (#1350 of 1957)
No single metric tells the full story. See the 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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