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WDAY (Workday) Graham Number : $52.87 (As of Oct. 2024)


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What is Workday Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-12-13), the stock price of Workday is $273.67. Workday's graham number for the quarter that ended in Oct. 2024 was $52.87. Therefore, Workday's Price to Graham Number ratio for today is 5.18.

The historical rank and industry rank for Workday's Graham Number or its related term are showing as below:

WDAY' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 4.42   Med: 18   Max: 62.56
Current: 5.18

During the past 13 years, the highest Price to Graham Number ratio of Workday was 62.56. The lowest was 4.42. And the median was 18.00.

WDAY's Price-to-Graham-Number is ranked worse than
78.47% of 1426 companies
in the Software industry
Industry Median: 2.42 vs WDAY: 5.18

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Workday Graham Number Historical Data

The historical data trend for Workday's Graham Number 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.

* Premium members only.

Workday Graham Number Chart

Workday Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 3.71 - 49.78

Workday Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Graham Number 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 29.22 38.15 44.56 46.87 52.87

Competitive Comparison of Workday's Graham Number

For the Software - Application subindustry, Workday's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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's Price-to-Graham-Number Distribution in the Software Industry

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

* The bar in red indicates where Workday's Price-to-Graham-Number falls into.



Workday Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Workday's Graham Number for the fiscal year that ended in Jan. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*18.862*5.84)
=49.78

Workday's Graham Number for the quarter that ended in Oct. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*17.872*6.95)
=52.87

* 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  (NAS:WDAY) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Workday's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Oct. 2024 )
=273.67/52.87
=5.18

* 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.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


Workday Graham Number Related Terms

Thank you for viewing the detailed overview of Workday's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


Workday Business Description

Address
6110 Stoneridge Mall Road, Pleasanton, CA, USA, 94588
Workday is a software company that offers human capital management, or HCM, financial management, and business planning solutions. Known for being a cloud-only software provider, Workday was founded in 2005 and is headquartered in Pleasanton, California.
Executives
David A Duffield 10 percent owner C/O WORKDAY, INC., 6230 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Sayan Chakraborty officer: Co-President 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Frederick Wayne A.i. director 500 W MAIN ST., LOUISVILLE KY 40202
Richard Harry Sauer officer: EVP, General Counsel & Secty 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Still George J Jr director NORWEST VENTURE PARTNERS, 525 UNIVERSITY AVENUE, SUITE 800, PALO ALTO CA 94301
Douglas A. Robinson officer: Co-President 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
James Bozzini officer: Senior Vice President 6230 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Aneel Bhusri director, 10 percent owner, officer: Co-CEO and Chairman
Zane Rowe officer: Chief Financial Officer 1600 SMITH STREET, HQSEO, HOUSTON TX 77002
Carl M. Eschenbach director C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, PALO ALTO CA 94025
Christa Davies director AON CORPORATE LAW DEPT, 200 EAST RANDOLPH ST, 8TH FL, CHICAGO IL 60601
Barbara A Larson officer: Chief Financial Officer 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Mark J Hawkins director C/O LOGITECH, INC., 6505 KAISER DRIVE, FREMONT CA 94555
Robynne Sisco officer: Chief Financial Officer 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Gomez Luciano Fernandez officer: Co-President 1A SHAWFIELD STREET,, RICHARDSON HOUSE, LONDON X0 SW3 4BA