Workday, Inc. provides enterprise cloud applications in the United States and internationally. The company offers a suite of financial management applications to maintain accounting information; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; perform financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (41 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $151.24 Implied EV: $36.82B |
What growth rate is the market pricing in at $188?
The market implies +20.7% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +3.8%, reflecting heavy growth investment.
Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.
"Market is pricing this stock without strong emotion in either direction"
Price appears to exceed estimated intrinsic value — limited margin of safety at current levels
