Workday (WDAY)
Forward P/E 17.03x against a peer median of 18.61x gives a ratio of 0.92x, just inside the fairly-priced band and just above the 0.90x undervalued line — the discount is real but too small to call a bargain. PEG 0.90 supports the price being reasonable for the growth on offer, and latest-quarter revenue grew +12.8% YoY (PRIMARY/EDGAR), close to the application-software cluster median of +14.9%. Trailing P/E 42.32x is much higher than the forward figure, which reflects earnings still building rather than a stretched price, but it also means the fair call depends on the forward earnings arriving. Delivered demand check: the Application software group's median latest-quarter revenue growth was 14.9% year over year (SEC filings) — demand rising, and Workday is growing broadly with it.
What would change this label: Moves to UNDERVALUED if the forward P/E falls below ~16.7x (ratio under 0.90x) while revenue growth holds at or above +12% YoY; moves to OVERVALUED if the forward P/E re-rates above ~24x (ratio over 1.30x) without revenue growth accelerating above +20% YoY, or if growth falls below +6% YoY at an unchanged multiple.
Workday sells cloud software that companies use for payroll, hiring and finance. Sales grew about 13% last quarter, in line with similar software firms, and the shares cost about 17 times next year's expected profits — a touch less than rivals at about 19 times. That small discount is not enough to call it a bargain, so the price looks fair.
Both lines start at 100 on 2020-09-01. Over the full window Workday returned -15.01% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Workday: -63.4% (2024-02-26 to 2026-04-10). Source: Nasdaq official daily history.
What the label rests on
Forward P/E 17.03x against a peer median of 18.61x gives a ratio of 0.92x, just inside the fairly-priced band and just above the 0.90x undervalued line — the discount is real but too small to call a bargain. PEG 0.90 supports the price being reasonable for the growth on offer, and latest-quarter revenue grew +12.8% YoY (PRIMARY/EDGAR), close to the application-software cluster median of +14.9%. Trailing P/E 42.32x is much higher than the forward figure, which reflects earnings still building rather than a stretched price, but it also means the fair call depends on the forward earnings arriving. Delivered demand check: the Application software group's median latest-quarter revenue growth was 14.9% year over year (SEC filings) — demand rising, and Workday is growing broadly with it. The company’s forward P/E is 17.0× against a peer median of 18.6×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Application software group's median latest-quarter revenue growth was 14.9% year over year (SEC filings) — demand rising. Latest-quarter sales growth was +12.8% versus a year earlier (SEC filings).
| Company | Price (Oct 27, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Workday (WDAY) | $205.46 | 17.0× | 42.3× |
| ADSK | $241.91 | 18.6× | 31.4× |
| PTC | $194.62 | 23.2× | 18.9× |
| TYL | $378.62 | 26.3× | 49.9× |
| FICO | $702.40 | 15.2× | 20.4× |
| TRMB | $63.16 | 16.3× | — |
| Peer median | 18.6× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
This company does not report a gross-profit line in its SEC facts (normal for banks, payment networks and some health insurers), so profit is shown as net income instead — gross margin is marked UNVERIFIED-absent rather than estimated.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Jul 2026 2026-07-31 | $2.6B | — | $632M | 2.57 | $460M |
| Q/E Apr 2026 2026-04-30 | $2.5B | — | $222M | 0.87 | $616M |
| Q/E Jan 2026 2026-01-31 | $2.5B | — | $145M | — | $1.2B |
| Q/E Oct 2025 2025-10-31 | $2.4B | — | $252M | 0.94 | $550M |
| Q/E Jul 2025 2025-07-31 | $2.3B | — | $228M | 0.84 | $588M |
| Q/E Apr 2025 2025-04-30 | $2.2B | — | $68M | 0.25 | $421M |
| Q/E Jan 2025 2025-01-31 | $2.2B | — | $94M | — | $1.0B |
| Q/E Oct 2024 2024-10-31 | $2.2B | — | $193M | 0.72 | $359M |
| Q/E Jul 2024 2024-07-31 | $2.1B | — | $132M | 0.49 | $516M |
| Q/E Apr 2024 2024-04-30 | $2.0B | — | $107M | 0.40 | $291M |
| Q/E Jan 2024 2024-01-31 | $1.9B | — | $1.2B | — | $947M |
| Q/E Oct 2023 2023-10-31 | $1.9B | — | $114M | 0.43 | $391M |
The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | Workday, Inc. |
| Chief executive | Aneel Bhusri (source: https://anz.peoplemattersglobal.com/news/appointments/aneel-bhusri-returns-as-ceo-of-workday-ushering-in-a-new-era-of-ai-driven-innovation-48349) |
| Sector | Technology — Application Software — cloud software for human-capital management (HR) and financial management |
| Share price (Oct 27, 2026) | $205.46 |
| Market value (market cap) | $50.6B — share price times shares outstanding of 246,307,000 (SEC filings; SEC EDGAR WeightedAverageNumberOfDilutedSharesOutstanding (latest quarter; dei EntityCommonStockSharesOutstanding series is stale for this filer)) |
| Sales, last twelve months | $10.2B |
| Net income, last twelve months | $1.3B |
| Free cash flow, last twelve months | $2.8B |
| Latest reported quarter | Q/E Jul 2026 (of 24 quarters in the data pack) |
| Six-year price return vs S&P 500 | -15.01% vs +118.28% |
| Worst peak-to-trough fall | -63.4% (2024-02-26 to 2026-04-10) |
What we could not verify
- Gross profit / gross margin: not tagged as a standalone line in this company's EDGAR company facts (common for banks, payment networks and some healthcare payers) — shown as UNVERIFIED-absent; the page charts revenue and net income instead.
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Free cash flow is absent for one or more quarters: either the filer does not separately tag PP&E purchases in its EDGAR cash-flow facts (common for banks), or — for a successor registrant's newest quarter — the cash-flow lines are year-to-date without the prior-quarter rung needed to difference them. Affected quarters are null in the data, never estimated.
- Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
- Multiples provenance: the brief's fetch notes record that the direct statistics-page fetch failed with a 429 rate limit and the multiples were taken from the stockanalysis.com statistics result as printed in a search snippet — same source, indirect capture.
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0001327811.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0001327811.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/WDAY/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.