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Western Digital PE Ratio

: 14.09 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-01-18), Western Digital's share price is $66.64. Western Digital's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $4.73. Therefore, Western Digital's PE Ratio for today is 14.09.


The historical rank and industry rank for Western Digital's PE Ratio or its related term are showing as below:

NAS:WDC' s PE Ratio Range Over the Past 10 Years
Min: 4.4   Med: 15.33   Max: 183.53
Current: 14.09

4.4
183.53

During the past 13 years, the highest PE Ratio of Western Digital was 183.53. The lowest was 4.40. And the median was 15.33.


NAS:WDC's PE Ratio is ranked higher than
68% of the 1643 Companies
in the Hardware industry.

( Industry Median: 22.23 vs. NAS:WDC: 14.09 )

Western Digital's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $1.93. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $4.73.

As of today (2022-01-18), Western Digital's share price is $66.64. Western Digital's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $4.73. Therefore, Western Digital's PE Ratio without NRI for today is 14.09.

During the past 13 years, Western Digital's highest PE Ratio without NRI was 183.53. The lowest was 4.40. And the median was 15.33.

Western Digital's EPS without NRI for the three months ended in Sep. 2021 was $1.93. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $4.73.

During the past 3 years, the average EPS without NRI Growth Rate was 6.50% per year.

During the past 13 years, Western Digital's highest 3-Year average EPS without NRI Growth Rate was 85.40% per year. The lowest was -41.50% per year. And the median was 23.55% per year.

Western Digital's EPS (Basic) for the three months ended in Sep. 2021 was $1.97. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2021 was $4.84.


Western Digital PE Ratio Historical Data

The historical data trend for Western Digital's PE Ratio 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.

Western Digital Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 66.12 35.19 At Loss At Loss 26.76

Western Digital Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only At Loss 100.71 59.60 26.76 11.93

Competitive Comparison

For the Computer Hardware subindustry, Western Digital's PE Ratio, along with its competitors' market caps and PE Ratio 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 PE Ratio Distribution

For the Hardware industry and Technology sector, Western Digital's PE Ratio distribution charts can be found below:

* The bar in red indicates where Western Digital's PE Ratio falls into.



Western Digital PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Western Digital's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=66.64/4.730
=14.09

Western Digital's Share Price of today is $66.64.
Western Digital's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.73.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Western Digital  (NAS:WDC) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Western Digital PE Ratio Related Terms

Thank you for viewing the detailed overview of Western Digital's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Western Digital Business Description

Western Digital logo
Industry
Technology » Hardware NAICS : 334112 SIC : 3572
Address
5601 Great Oaks Parkway, San Jose, CA, USA, 95119
Western Digital is a leading vertically-integrated supplier of data storage solutions, spanning both hard disk drives (HDDs) and solid state drives (SSDs). In the HDD market it forms a practical duopoly with Seagate, and it is the largest global producer of NAND flash chips for SSDs in a joint venture with competitor Kioxia.
Executives
Soderbery Robert officer: EVP & GM, Flash Business C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Ray Michael Charles officer: EVP, Chief Legal Officer & Sec C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Sivaram Srinivasan officer: President, Tech & Strategy C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Sundberg Lori S officer: EVP & Chief Human Res Officer 400 NORTH FIFTH STREET PHOENIX AZ 85004
Goeckeler David director, officer: Chief Executive Officer C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Zamiska Gene M. officer: Principal Accounting Officer C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Hunkler Sean officer: EVP, Global Operations C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Eulau Robert K officer: EVP & CFO 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Price Paula A director ONE CVS DRIVE WOONSOCKET RI 02895
Cote Kathleen A director 12061 BLUEMONT WAY RESTON VA 20190
Alexy Kimberly director 500 MCCARTHY BLVD. MILPITAS CA 95035
Doluca Tunc director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: DOLUCA TUNC a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Milligan Stephen D director C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Streeter Stephanie A director LIBBEY INC. 300 MADISON AVENUE TOLEDO OH 43604
Massengill Matthew E director C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119

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