Latest Ratios: P/E Ratio 18.7x · EV/EBITDA 33.4x · ROE 133.0%. (1997–2026 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 | $160.1B | $202.7B | $22.7B | $18.7B | $9.1B | $10.4B | $16.4B | $9.6B | $10.5B | $18.0B | $19.8B |
| Enterprise Value | $159.6B | $202.1B | $25.7B | $24.9B | $15.6B | $15.7B | $21.7B | $16.1B | $17.6B | $24.1B | $26.6B |
| P/E Ratio → | 18.73 | 21.73 | 12.36 | — | — | 6.91 | 19.94 | — | — | 26.59 | 49.96 |
| P/S Ratio | 12.40 | 15.69 | 2.39 | 2.95 | 1.46 | 0.55 | 0.97 | 0.57 | 0.63 | 0.87 | 1.04 |
| P/B Ratio | 19.71 | 22.86 | 4.28 | 1.73 | 0.83 | 0.85 | 1.53 | 1.00 | 1.05 | 1.56 | 1.74 |
| P/FCF | 45.61 | 57.72 | 17.70 | — | — | 13.41 | 18.32 | 53.99 | 13.28 | 5.29 | 6.88 |
| P/OCF | 40.76 | 51.58 | 13.44 | — | — | 5.51 | 8.64 | 11.60 | 6.78 | 4.27 | 5.77 |
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 | — | 15.65 | 2.70 | 3.95 | 2.49 | 0.83 | 1.29 | 0.96 | 1.06 | 1.17 | 1.39 |
| EV / EBITDA | 33.36 | 42.25 | 9.22 | 151.13 | 55.59 | 4.72 | 8.94 | 8.46 | 9.25 | 4.25 | 6.52 |
| EV / EBIT | 35.41 | 20.21 | 17.28 | — | — | 6.33 | 17.36 | 43.83 | 96.48 | 8.74 | 16.47 |
| EV / FCF | — | 57.57 | 20.01 | — | — | 20.25 | 24.30 | 90.87 | 22.23 | 7.10 | 9.24 |
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 | 48.9% | 48.9% | 38.8% | 28.1% | 22.2% | 31.3% | 26.7% | 22.6% | 22.6% | 37.3% | 31.8% |
| Operating Margin | 34.9% | 34.9% | 24.5% | -6.4% | -8.8% | 12.7% | 7.2% | 2.0% | 0.5% | 17.5% | 10.2% |
| Net Profit Margin | 72.9% | 72.9% | 19.5% | -12.6% | -26.9% | 8.2% | 4.9% | -1.5% | -4.6% | 3.3% | 2.1% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 133.0% | 133.0% | 23.1% | -7.3% | -14.5% | 13.5% | 8.1% | -2.6% | -7.0% | 5.9% | 3.5% |
| ROA | 67.6% | 67.6% | 9.7% | -3.3% | -6.6% | 5.9% | 3.2% | -1.0% | -2.7% | 2.3% | 1.3% |
| ROIC | 40.7% | 40.7% | 13.8% | -1.8% | -2.4% | 10.7% | 5.7% | 1.5% | 0.4% | 15.1% | 7.7% |
| ROCE | 49.5% | 49.5% | 17.5% | -2.2% | -2.7% | 11.3% | 5.7% | 1.5% | 0.4% | 14.4% | 7.6% |
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 | 0.12 | 0.12 | 0.96 | 0.72 | 0.77 | 0.62 | 0.81 | 1.00 | 1.06 | 0.97 | 1.15 |
| Debt / EBITDA | 0.22 | 0.22 | 1.82 | 47.42 | 30.26 | 2.29 | 3.59 | 5.04 | 5.54 | 1.97 | 3.22 |
| Net Debt / Equity | — | -0.06 | 0.56 | 0.58 | 0.59 | 0.43 | 0.50 | 0.68 | 0.71 | 0.53 | 0.60 |
| Net Debt / EBITDA | -0.11 | -0.11 | 1.07 | 38.02 | 23.04 | 1.59 | 2.20 | 3.43 | 3.72 | 1.09 | 1.67 |
| Debt / FCF | — | -0.15 | 2.31 | — | — | 6.84 | 5.98 | 36.88 | 8.95 | 1.82 | 2.36 |
| Interest Coverage | 66.24 | 66.24 | 4.17 | -0.79 | -1.74 | 8.14 | 3.84 | 0.89 | 0.39 | 4.08 | 1.91 |
Net cash position: cash ($1.6B) exceeds total debt ($1.1B)
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 | 1.33 | 1.33 | 1.08 | 1.32 | 1.45 | 1.81 | 2.00 | 2.05 | 2.22 | 2.39 | 2.55 |
| Quick Ratio | 0.97 | 0.97 | 0.84 | 1.10 | 0.77 | 1.11 | 1.26 | 1.36 | 1.36 | 1.73 | 2.01 |
| Cash Ratio | 0.37 | 0.37 | 0.46 | 0.25 | 0.37 | 0.44 | 0.69 | 0.69 | 0.91 | 1.12 | 1.46 |
| Asset Turnover | — | 0.93 | 0.68 | 0.26 | 0.25 | 0.72 | 0.65 | 0.65 | 0.63 | 0.71 | 0.64 |
| Inventory Turnover | 4.37 | 4.37 | 4.51 | 3.28 | 1.32 | 3.55 | 3.43 | 4.22 | 3.90 | 4.40 | 5.56 |
| Days Sales Outstanding | — | 57.24 | 56.97 | 71.13 | 93.25 | 54.46 | 48.68 | 51.88 | 26.52 | 38.84 | 37.24 |
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 | 0.1% | 0.1% | 0.2% | — | — | — | — | 6.2% | 5.6% | 3.3% | 2.9% |
| Payout Ratio | 2.0% | 2.0% | 2.4% | — | — | — | — | — | — | 87.9% | 144.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.3% | 4.6% | 8.1% | — | — | 14.5% | 5.0% | — | — | 3.8% | 2.0% |
| FCF Yield | 2.2% | 1.7% | 5.7% | — | — | 7.5% | 5.5% | 1.9% | 7.5% | 18.9% | 14.5% |
| Buyback Yield | 1.6% | 1.3% | 0.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 5.4% | 3.3% | 0.0% |
| Total Shareholder Yield | 1.7% | 1.4% | 0.8% | 0.0% | 0.0% | 0.0% | 0.0% | 6.2% | 10.9% | 6.6% | 2.9% |
| Shares Outstanding | — | $376M | $359M | $326M | $318M | $316M | $309M | $298M | $292M | $307M | $296M |
Includes 30+ ratios · 30 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying WDC stock.
Western Digital Corporation's current P/E ratio is 18.7x. The historical average is 13.5x. This places it at the 77th percentile of its historical range.
Western Digital Corporation's current EV/EBITDA is 33.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.0x.
Western Digital Corporation's return on equity (ROE) is 133.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.8%.
Based on historical data, Western Digital Corporation is trading at a P/E of 18.7x. This is at the 77th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Western Digital Corporation's current dividend yield is 0.11% with a payout ratio of 2.0%.
Western Digital Corporation has 48.9% gross margin and 34.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Western Digital Corporation's Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
AI demand concentration and tax benefit non-recurrence
Metrics are mathematically derived from official filings.
Margin Expansion Driven by Pricing and Mix
Gross margin surged from 29.6% in 2024Q3 to 54.1% in 2026Q4, per reported financials, reflecting favorable NAND pricing and richer product mix, though net margin of 85.3% is inflated by a one-time tax benefit.
The gross margin trajectory indicates a structural shift in pricing power, likely from high-capacity enterprise drives and disciplined NAND supply. Operating margin expanded to 41.7% in 2026Q4, demonstrating significant operating leverage. However, the net margin of 85.3% far exceeds operating margin, suggesting a substantial non-recurring tax gain; investors should normalize for this to assess sustainable earning power.
ROIC Inflection Signals Cyclical Recovery
ROIC improved from 0.4% in 2024Q3 to 13.3% in 2026Q4, as per ratio data, indicating a sharp cyclical recovery, though still below the 20%+ levels typical of peak semiconductor cycles.
The ROIC expansion is driven by both margin recovery and improved asset efficiency, with asset turnover rising from 0.07 to 0.26. This suggests the company is generating higher returns on a leaner asset base, partly due to divestitures and reduced capital intensity. However, the absolute ROIC remains modest relative to peers like Micron (13.2% ROIC), implying room for further improvement if the upcycle persists.
Working Capital Efficiency Improves Sharply
Cash conversion cycle compressed from 196 days in 2024Q3 to 35 days in 2026Q4, per reported figures, driven by faster inventory turnover and extended payables, indicating improved working capital management.
DSO fell from 86 to 48 days, DIO from 237 to 76 days, while DPO rose from 128 to 89 days, collectively reducing cash tied up in operations. This efficiency gain is a key driver of the robust free cash flow margin of 26.4%. The improvement suggests stronger customer demand and better inventory discipline, though the sustainability depends on maintaining favorable NAND pricing.
Leverage Nearly Eliminated, Coverage Robust
Debt-to-equity fell from 0.90 in 2024Q3 to 0.12 in 2026Q4, with interest coverage soaring to 390.75, as per balance sheet data, indicating minimal refinancing risk and ample capacity for capital returns.
Total debt declined from $9.1B to $1.1B over the period, reflecting aggressive deleveraging. The D/EBITDA ratio of 0.63 is exceptionally low, providing a fortress-like balance sheet. This financial flexibility supports the planned business separation and potential for increased shareholder returns, though investors should monitor any new debt issuance associated with the spin-off.
Liquidity Adequate but Quick Ratio Tightens
Current ratio improved to 1.33 in 2026Q4 from 1.08 in 2025Q4, but quick ratio of 0.97 indicates reliance on inventory, per ratio data, suggesting moderate liquidity under stress.
The current ratio is adequate, but the quick ratio below 1.0 implies that inventory is a significant component of current assets. In a downturn, inventory write-downs could pressure liquidity. However, with cash of $1.6B and minimal debt, the company appears well-positioned to weather short-term shocks, though the reliance on inventory warrants monitoring.
P/E Misleading Due to Cyclical Earnings
The trailing P/E of 18.53 appears low, but forward P/E of 46.94 suggests the market expects earnings to normalize, as per valuation data, making P/E a misleading gauge for this cyclical business.
The wide gap between trailing and forward P/E reflects the market's anticipation of a cyclical peak. Using P/E on peak earnings understates risk, while EV/EBITDA of 32.99 is elevated relative to historical norms. Investors should instead focus on mid-cycle earnings power or EV/Sales, which at 12.26 is rich, implying high growth expectations. The PEG of 0.33 is distorted by the current growth spike and should be used cautiously.