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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Western Digital has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Western Digital Corp shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Western Digital's Interest Coverage for the quarter that ended in Jun. 2026 was 114.72.
Western Digital's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.07.
As of today, Western Digital's Altman Z-Score is 24.46.
Western Digital (XSWX:WDC) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Western Digital has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.
Western Digital Financial Strength Related Terms
XSWX:WDC vs STX, SNDK, ANET: Financial Strength Comparison
For the Computer Hardware subindustry, Western Digital's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Hardware Industry
For the Hardware industry and Technology sector, Western Digital's Financial Strength distribution charts can be found below:
* The bar in red indicates where Western Digital's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Western Digital has a Z-score of 24.46, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 24.46 is strong.
* 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.
Western Digital (XSWX:WDC) has a Financial Strength of 10 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Western Digital and its competitors. This is 100% above median its historical median of 5.00. Over the past decade, Western Digital's Financial Strength has ranged from 3.00 to 8.00.
Is Western Digital's Financial Strength too high?
Western Digital's current Financial Strength of 10 is 100% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, Western Digital has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Western Digital's Financial Strength compare to STX and SNDK?
Western Digital's Financial Strength of 10 can be compared against companies in the Hardware industry. Historically, Western Digital's own Financial Strength has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Hardware company?
A good Financial Strength depends on the Hardware industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Western Digital and its competitors. Western Digital's current Financial Strength is 10, which is 100% above median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Digital stock overvalued right now?
Based on GuruFocus' analysis, Western Digital (XSWX:WDC) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF84.52, compared to a current price of CHF384.50 — trading 354.9% above its estimated fair value. The current Financial Strength is 10, which is 100% above median its 10-year median of 5.00. Western Digital's overall GF Score™ is 46/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Western Digital (XSWX:WDC), the current Financial Strength is 10 as of Jun. 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 Western Digital (XSWX:WDC) Overvalued in 2026?
Based on GuruFocus' analysis, Western Digital stock appears to be overvalued.
The current stock price of CHF384.50 is trading 354.9% above its estimated GF Value™ of CHF84.52.
GuruFocus considers Western Digital to be Significantly Overvalued.
Key valuation signals for XSWX:WDC:
Financial Strength: 10 (100% above median its 10-year median of 5.00)
GF Value™: CHF84.52 vs. price of CHF384.50 (354.9% above fair value)
No single metric tells the full story. See the XSWX:WDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Digital is a leading vertically integrated supplier of hard disk drives. The HDD market is a practical duopoly, with Western Digital and Seagate being the two largest players. Western Digital designs and manufactures its HDDs, with much of the manufacturing and workforce located in Asia. The primary consumers of HDDs are data centers.
46GF Score
Get the complete analysis for XSWX:WDC
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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