This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Workday's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2023 was $25.132. Workday's 10-Year median PS Ratio is 12.7125. Therefore, the Median PS Value for today is $319.49.
As of today (2023-06-08), Workday's share price is $204.49. Workday's Median PS Value is $319.49. Therefore, Workday's Price to Median PS Value for today is 0.64.
The historical rank and industry rank for Workday's Median PS Value or its related term are showing as below:
WDAY'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.51 Med: 0.58 Max: 0.74
Current: 0.64
During the past 13 years, the highest Price to Median PS Value of Workday was 0.74. The lowest was 0.51. And the median was 0.58.
WDAY's Price-to-Median-PS-Value is ranked better than 78.17% of 1026
companies
in the Software industry
Industry Median: 0.99
vs WDAY: 0.64
Workday Median PS Value Historical Data
The historical data trend for Workday's Median PS Value 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 Annual Data
Trend
Jan14
Jan15
Jan16
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Jan23
Median PS Value
-
-
-
-
311.97
Workday Quarterly Data
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Median PS Value
279.88
293.36
303.01
311.97
319.49
Competitive Comparison
For the Software - Application subindustry, Workday's Median PS Value, along with its competitors' market caps and Median PS Value 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 Median PS Value Distribution
For the Software industry and Technology sector, Workday's Median PS Value distribution charts can be found below:
* The bar in red indicates where Workday's Median PS Value falls in comparison to its industry or sector. The grey bar indicates the Median PS Value's extreme value range as defined by GuruFocus.
Workday Median PS Value Calculation
Workday's Median PS Value for today is calculated as
10-Year Median PS Ratio is 12.7125.
Workday's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $25.132.
* 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) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Workday's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
204.49
/
319.49
=
0.64
* 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 Median PS Value Related Terms
Thank you for viewing the detailed overview of Workday's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
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 is headquartered in Pleasanton, California. Founded in 2005, Workday now employs over 12,000 employees.
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