Latest Ratios: P/E Ratio 73.0x · EV/EBITDA 37.7x · ROE 8.2%. (2011–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $49.3B | $46.3B | $70.5B | $77.2B | $46.2B | $64.3B | $53.9B | $41.9B | $39.4B | $24.9B | $16.5B |
| Enterprise Value | $51.6B | $48.6B | $72.4B | $78.5B | $47.6B | $64.8B | $54.8B | $42.8B | $39.9B | $25.3B | $16.5B |
| P/E Ratio → | 72.96 | 68.07 | 134.39 | 55.87 | — | 2108.42 | — | — | — | — | — |
| P/S Ratio | 5.16 | 4.84 | 8.35 | 10.64 | 7.44 | 12.51 | 12.49 | 11.56 | 13.94 | 11.62 | 10.46 |
| P/B Ratio | 6.35 | 5.93 | 7.81 | 9.55 | 8.28 | 14.17 | 16.45 | 16.87 | 20.09 | 15.76 | 12.90 |
| P/FCF | 17.75 | 16.66 | 32.23 | 40.41 | 35.65 | 46.63 | 53.28 | 67.65 | 99.96 | 79.54 | 72.29 |
| P/OCF | 16.78 | 15.74 | 28.67 | 35.93 | 27.90 | 38.94 | 42.52 | 48.51 | 64.87 | 53.49 | 47.24 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.09 | 8.57 | 10.81 | 7.66 | 12.62 | 12.69 | 11.80 | 14.15 | 11.79 | 10.46 |
| EV / EBITDA | 37.66 | 35.44 | 97.66 | 168.82 | 335.17 | 284.39 | 1215.83 | — | — | — | — |
| EV / EBIT | 50.42 | 48.15 | 96.23 | 167.02 | — | 1964.88 | — | — | — | — | — |
| EV / FCF | — | 17.49 | 33.06 | 41.08 | 36.70 | 47.04 | 54.13 | 69.00 | 101.40 | 80.68 | 72.26 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 75.7% | 75.7% | 75.5% | 75.6% | 72.5% | 72.2% | 72.3% | 70.6% | 70.4% | 70.6% | 69.3% |
| Operating Margin | 10.7% | 10.7% | 4.9% | 2.5% | -3.6% | -2.3% | -5.8% | -13.8% | -16.4% | -14.1% | -22.4% |
| Net Profit Margin | 7.3% | 7.3% | 6.2% | 19.0% | -5.9% | 0.6% | -6.5% | -13.3% | -14.8% | -15.0% | -24.4% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.2% | 8.2% | 6.1% | 20.2% | -7.3% | 0.7% | -9.8% | -21.6% | -23.6% | -22.5% | -31.9% |
| ROA | 3.8% | 3.8% | 3.1% | 9.2% | -3.1% | 0.3% | -3.6% | -7.8% | -8.0% | -7.8% | -12.8% |
| ROIC | 7.3% | 7.3% | 3.1% | 1.7% | -2.8% | -1.9% | -5.0% | -12.9% | -15.6% | -14.2% | -20.3% |
| ROCE | 8.5% | 8.5% | 3.5% | 1.8% | -3.1% | -2.4% | -6.0% | -14.5% | -15.5% | -12.4% | -18.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.49 | 0.49 | 0.37 | 0.41 | 0.58 | 0.46 | 0.68 | 0.63 | 0.62 | 0.94 | 0.42 |
| Debt / EBITDA | 2.79 | 2.79 | 4.54 | 7.09 | 22.88 | 9.22 | 49.67 | — | — | — | — |
| Net Debt / Equity | — | 0.30 | 0.20 | 0.16 | 0.24 | 0.13 | 0.26 | 0.34 | 0.29 | 0.23 | -0.00 |
| Net Debt / EBITDA | 1.69 | 1.69 | 2.45 | 2.76 | 9.60 | 2.49 | 18.95 | — | — | — | — |
| Debt / FCF | — | 0.84 | 0.83 | 0.67 | 1.05 | 0.41 | 0.84 | 1.35 | 1.44 | 1.14 | -0.02 |
| Interest Coverage | 8.85 | 8.85 | 6.60 | 4.12 | -1.55 | 1.94 | -3.00 | -7.22 | -6.04 | -6.07 | -11.81 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.32 | 1.32 | 1.85 | 1.92 | 1.71 | 1.00 | 1.09 | 1.01 | 1.08 | 1.89 | 1.92 |
| Quick Ratio | 1.32 | 1.32 | 1.85 | 1.92 | 1.71 | 1.00 | 1.09 | 1.01 | 1.08 | 1.89 | 1.92 |
| Cash Ratio | 0.85 | 0.85 | 1.45 | 1.55 | 1.32 | 0.72 | 0.83 | 0.65 | 0.73 | 1.59 | 1.55 |
| Asset Turnover | — | 0.53 | 0.47 | 0.44 | 0.46 | 0.49 | 0.50 | 0.53 | 0.51 | 0.43 | 0.48 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 89.11 | 86.56 | 82.41 | 92.19 | 88.25 | 87.28 | 88.31 | 91.14 | 89.96 | 95.00 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.4% | 1.5% | 0.7% | 1.8% | — | 0.0% | — | — | — | — | — |
| FCF Yield | 5.6% | 6.0% | 3.1% | 2.5% | 2.8% | 2.1% | 1.9% | 1.5% | 1.0% | 1.3% | 1.4% |
| Buyback Yield | 5.9% | 6.3% | 1.0% | 0.5% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 5.9% | 6.3% | 1.0% | 0.5% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $263M | $269M | $265M | $255M | $254M | $237M | $227M | $217M | $208M | $198M |
Includes 30+ ratios · 16 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying WDAY stock.
Workday, Inc.'s current P/E ratio is 73.0x. The historical average is 86.1x. This places it at the 67th percentile of its historical range.
Workday, Inc.'s current EV/EBITDA is 37.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 66.5x.
Workday, Inc.'s return on equity (ROE) is 8.2%. The historical average is -14.6%.
Based on historical data, Workday, Inc. is trading at a P/E of 73.0x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Workday, Inc. has 75.7% gross margin and 10.7% operating margin. Operating margin between 10-20% is typical for established companies.
Workday, Inc.'s Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Valuation premium vulnerable to growth deceleration
Metrics are mathematically derived from official filings.
Premium Valuation Hinges on Margin Expansion
Workday's forward P/E of 18.33 appears to price in significant earnings growth, yet its current operating margin of 12.0% lags peers like Oracle (30.8%) and SAP (26.1%), suggesting the market is betting on a structural shift in profitability that has yet to materialize.
The valuation premium over legacy ERP peers is justified only if Workday can demonstrate a credible path to mature SaaS margins, as its current EV/EBITDA of 39.42 is more than double that of SAP. The forward multiple implies investors expect operating leverage to accelerate, but the historical trend shows gross margin stability without corresponding operating margin expansion. This disconnect suggests the stock is priced for flawless execution on cost discipline and the successful scaling of its Financials module.
Gross Margin Stability Masks Operating Leverage Lag
While gross margins have remained remarkably stable in the 75-76% range, operating margins have only recently expanded to 12.0%, indicating that the high-margin subscription base has not yet translated into proportional bottom-line profitability due to persistent high spending on R&D and sales.
The 75.4% gross margin in 2027Q2 reflects the scalable nature of the SaaS platform, but the 12.0% operating margin reveals that over 60% of revenue is consumed by operating expenses. This margin structure suggests Workday is still in a phase of investing for growth rather than harvesting profits. The key metric for true earning power is likely the subscription margin, which is obscured by the lower-margin professional services segment and substantial stock-based compensation.
Low ROIC Reflects Growth-Phase Capital Intensity
Workday's ROIC of 2.4% in 2027Q2, while improving from 0.5% a year prior, remains significantly below its cost of capital, indicating that the company is still in a phase of heavy investment where returns on invested capital have not yet caught up to the scale of its asset base.
The low ROIC is driven by a combination of modest net margins and a large asset base, particularly goodwill and intangibles which represent 32.7% of total assets. The trend from 0.5% to 2.4% over four quarters is positive, but the absolute level suggests that capital is being deployed faster than it is generating returns. This is typical for a high-growth SaaS company, but investors should monitor whether the improving trend continues as the business matures.
Conservative Leverage Provides Strategic Flexibility
With a Debt-to-Equity ratio of 0.58 and interest coverage of 11.32x, Workday maintains a conservative leverage profile that provides ample financial flexibility, though the recent compression in the current ratio to 0.91 warrants monitoring of near-term liquidity.
The modest leverage is a strategic choice rather than a necessity, as the company generates strong free cash flow. The interest coverage ratio of 11.32x indicates that debt service is extremely comfortable. However, the decline in the current ratio from 1.32 to 0.91 over two quarters suggests that capital deployment (likely buybacks) has tightened the liquidity position. This is not a solvency concern but does reduce the buffer against unexpected cash needs.
Liquidity Tightens Following Capital Deployment
The current ratio has compressed to 0.91 in 2027Q2 from 1.32 in 2026Q4, indicating that Workday's near-term liquidity position has tightened significantly following a period of substantial cash deployment, though the quick ratio remains identical, suggesting no inventory dependence.
The identical current and quick ratios confirm the asset-light, inventory-free nature of the SaaS business model. The compression in the current ratio is driven by a reduction in cash and current assets, likely due to share repurchases. While a ratio below 1.0 can be a red flag for industrial companies, for a software firm with predictable recurring cash flows, it may simply reflect efficient capital management. However, it does reduce the margin of safety.
The Misapplied Metric: Price-to-Earnings
The P/E ratio is the most commonly misapplied metric to Workday because it is distorted by substantial non-cash stock-based compensation, which inflated the TTM P/E to 76.53 while the forward P/E of 18.33 suggests a very different valuation picture.
The TTM P/E of 76.53 is misleading because it is based on GAAP net income, which is heavily reduced by non-cash stock-based compensation expense. The forward P/E of 18.33, based on analyst estimates, provides a more meaningful view of expected profitability. A more appropriate metric for evaluating Workday's valuation is Price-to-Free-Cash-Flow, which stood at 18.62 in 2027Q2, as it better reflects the cash-generative power of the subscription model after accounting for the true economic cost of employee compensation.