Intrinsiqq
Western Digital Corporation logoWestern Digital CorporationWDC
$331.83-6.91%
Western Digital Corporation logo

Western Digital Corporation

WDC

$331.83

-$24.62 (-6.91%)

⊜ Compare
ProfitabilityStrong marginsGrowthAcceleratingCash FlowStrong conversionValuationAttractively priced
What stands out

Margins and capital returns are both well above average: 34.47% operating margin, ROIC at 39.29%. Consistent with durable pricing power, though that alone doesn't make it a buy.

What's changing

Revenue up 35.7% YoY with margins expanding 10.0pp.

What deserves caution

Even for strong businesses, today's 14x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.

Valuation context

13.7x earnings, 34.1x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.

Price History

+163.5%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$119.64B
EPS$24.28
P/E13.67
P/FCF34.08
EV/EBITDA24.70
FCF Yield2.9%
Div. Yield0.15%
Net Debt/FCF-0.1x
52-Week Range
$120.47$746.23

Profitability & Returns

Revenue (TTM)

$12.92B

▲ +35.7% YoY

Net Income (TTM)

$9.42B

▲ +398.9% YoY

Op. Margin

34.47%

▲ +10.0pp YoY

ROIC

39.29%

▲ +26.5pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$3.51B

▲ +174.5% YoY

Op. Cash Flow (TTM)

$3.93B

▲ +132.3% YoY

Net Debt

-$388M

Net Cash Position

Cash & Equiv.

$1.58B

5Y CAGR: -5.3%

5Y CAGR: +36.1%

Continue Research

SourceComputed from the 10-Q filed 7 Aug 2026, covering the period ending 3 Jul 2026, as reported to the SEC. Data last refreshed 3 Oct 2026. How this is calculated.

Price from market data, last close as of 16 Oct 2026. Fiscal year ends Jul. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Western Digital (WDC) overvalued?

At a P/E of 13.7 and a price-to-free-cash-flow of 34.1, Western Digital (WDC) trades below a two-stage DCF intrinsic value of about $463.75 per share, so at $331.83 the stock looks undervalued (39.8% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Western Digital scores 80/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.1%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Western Digital's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $463.75 per share for WDC, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $347.81. At today's $331.83, that puts the stock about 39.8% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Western Digital a high-quality business?+

Western Digital scores 80 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 34.5% operating margin and a 39.3% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Western Digital (WDC) pay a dividend, and how much?+

Yes, Western Digital pays a regular dividend of about $0.45 per share per year (typically in quarterly installments), a yield of roughly 0.1% at the current price. That is a payout ratio of about 1.8% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For WDC's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Western Digital a good stock to buy right now?+

That depends on valuation and quality together, not either alone. WDC currently trades below its estimated intrinsic value and scores 80/100 on quality (high-quality). It also yields about 0.1%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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