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DCF Valuation
Base-case fair value
$292.15
Intrinsic $389.54 · 25% MOS
Current price: $116.93
Base-case summary
Our base-case DCF for Workday, Inc. (WDAY) projects 10 years of free cash flow growth at 12.8% for years 1–5 and 6.4% for years 6–10, anchored to 12.8% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $3.0B in trailing free cash flow, this produces an intrinsic value of $389.54 per share. A 25% safety margin gives a fair value of $292.15, suggesting the stock is currently 150% undervalued against the $116.93 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$3.0B
Cash & equivalents
$4.4B
Total debt
$3.8B
Shares outstanding
254M