Workday (XTER:W7D) EV-to-FCF: 17.50 (As of Aug. 29, 2026) — 65% Below Median

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
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XTER:W7D Workday Inc XTER:W7D
62 GF Score
Price €176.04
GF Value €281.29
Valuation Significantly Undervalued
! 4 Warning Signs
View Full Analysis

What is Workday EV-to-FCF?

Workday XTER:W7D +3.85% 62 EV-to-FCF is 17.50 as of Aug. 29, 2026, which is 65% below its 10-year median of 49.86. GuruFocus rates XTER:W7D with a GF Score™ of 62/100 and a GF Value™ of €281.29 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,595 Software companies, Workday ranks worse than 50.16% on this metric.

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Workday's Enterprise Value is €42,659 Mil. Workday's Free Cash Flow for the trailing twelve months (TTM) ended in Jul. 2026 was €2,438 Mil. Therefore, Workday's EV-to-FCF for today is 17.50.

The historical rank and industry rank for Workday's EV-to-FCF or its related term are showing as below:

XTER:W7D' s EV-to-FCF Range Over the Past 10 Years
Min: 9.82   Med: 49.86   Max: 136.58
Current: 16.21

During the past 13 years, the highest EV-to-FCF of Workday was 136.58. The lowest was 9.82. And the median was 49.86.

XTER:W7D's EV-to-FCF is ranked worse than
50.16% of 1595 companies
in the Software industry
Industry Median: 15.87 vs XTER:W7D: 16.21

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.

As of today (2026-08-29), Workday's stock price is €176.04. Workday's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2026 was €4.268. Therefore, Workday's PE Ratio (TTM) for today is 41.25.


Workday  (XTER:W7D) EV-to-FCF Explanation

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=176.04/4.268
=41.25

Workday's share price for today is €176.04.
Workday's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €4.268.

* 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.

Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.


Workday EV-to-FCF Related Terms


Workday EV-to-FCF Historical Data

* Premium members only.

The historical data trend for Workday's EV-to-FCF 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.

Workday EV-to-FCF Chart

Workday Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
EV-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 44.93 34.15 37.91 29.76 15.80

Workday Quarterly Data
Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26 Jul26
EV-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.76 23.32 15.80 10.07 0.00

XTER:W7D vs : EV-to-FCF Comparison

For the Software - Application subindustry, Workday's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry

For the Software industry and Technology sector, Workday's EV-to-FCF distribution charts can be found below:

* The bar in red indicates where Workday's EV-to-FCF falls into.


XTER:W7D
62GF Score
Workday Inc XTER:W7D
EV-to-FCF is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Workday EV-to-FCF Calculation

Workday's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=42659.229/2438.148
=17.50

Workday's current Enterprise Value is €42,659 Mil.
Workday's Free Cash Flow for the trailing twelve months (TTM) ended in Jul. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,438 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.

Frequently Asked Questions Learn more about EV-to-FCF →
What does a EV-to-FCF of 17.50 mean?
Workday (XTER:W7D) has a EV-to-FCF of 17.50 as of Aug. 29, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Workday and its competitors. This is 65% below median its historical median of 49.86. Over the past decade, Workday's EV-to-FCF has ranged from 9.82 to 136.58. According to the industry distribution chart, Workday ranks #800 out of 1595 companies in the Software industry, placing it in the top 50.2%.
Is Workday's EV-to-FCF too high?
Workday's current EV-to-FCF of 17.50 is 65% below median its 10-year median of 49.86. Over the past 10 years, this metric has ranged from a low of 9.82 to a high of 136.58. The Software industry median EV-to-FCF is 15.87. Workday's value of 17.50 is 10.3% above this industry median. Based on the distribution chart, Workday ranks #800 out of 1595 companies in the Software industry, which is below the industry midpoint. Overall, Workday has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Workday's EV-to-FCF compare to ?
According to the Software industry distribution chart, Workday ranks #800 out of 1595 companies for EV-to-FCF. This places Workday in the lower half of its industry. The industry median EV-to-FCF is 15.87. Workday's value of 17.50 is 10.3% above this benchmark. Historically, Workday's own EV-to-FCF has ranged from 9.82 to 136.58 over the past decade. While the company's 10-year median is 49.86 vs. the industry median of 15.87, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 15.87, based on 1,595 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Workday's current EV-to-FCF of 17.50 is 10.3% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Workday and its competitors. For the Software industry, the median EV-to-FCF is 15.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Workday's current EV-to-FCF is 17.50, which is 65% below median its own 10-year median of 49.86. 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 (XTER:W7D) is currently considered Significantly Undervalued. The stock's GF Value™ is €281.29, compared to a current price of €176.04 — trading 37.4% below its estimated fair value. The current EV-to-FCF is 17.50, which is 65% below median its 10-year median of 49.86 and 10.3% above the Software industry median of 15.87. Workday's overall GF Score™ is 62/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Workday (XTER:W7D), the current EV-to-FCF is 17.50 as of Aug. 29, 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 (XTER:W7D) Overvalued in 2026?

Based on GuruFocus' analysis, Workday stock appears to be undervalued. The current stock price of €176.04 is trading 37.4% below its estimated GF Value™ of €281.29. GuruFocus considers Workday to be Significantly Undervalued.

Key valuation signals for XTER:W7D:

  • EV-to-FCF: 17.50 (65% below median its 10-year median of 49.86)
  • GF Value™: €281.29 vs. price of €176.04 (37.4% below fair value)
  • GF Score™: 62/100 with 4 warning signs
  • Industry Position: 10.3% above the Software median (#800 of 1595)

No single metric tells the full story. See the XTER:W7D stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Workday Business Description

Comparable Companies
Address 6110 Stoneridge Mall Road, Pleasanton, CA, USA, 94588
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.
62GF Score

Get the complete analysis for XTER:W7D

EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€176.04
Price
€281.29
GF Value