Information Technology · Technology Hardware, Storage & Peripherals · US stock · price as of 16 Oct 2026
Key indicators
Price
$332.00
52-week range
$117.01 – $799.62
Market cap
$127.2B
P/E (trailing)
13.4×
EV / EBITDA
26.2×
Free-cash-flow yield
2.8%
Dividend yield
0.2%
Revenue (last 12 months)
$12.9B
Revenue growth (3y a year)
27.4%
Operating margin
34.5%
Return on invested capital
47.3%
Net debt / EBITDA
-0.1×
Fair value
Blended fair value$157.17 range $151 – $163
Versus priceOvervalued−53% to fair value
Peer multiples
$100.14
Fundamentals-adjusted multiple
$198.05
10-year DCF (market-scaled)
$173.33
Earnings power value (floor, not blended)
$33.15
Model uncertainty
High
X-Ray Score
55/ 100 · Medium confidence · ahead of 60% of sector peers
Valuation38
Growth75
Profitability51
Financial health67
Dividends41
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Western Digital makes hard disk drives and related data storage products used in data centers, personal computers and consumer devices. Its drives hold the data that cloud companies, businesses and individual users store. Revenue comes from selling drives to large cloud customers, computer makers, distributors and retailers, and demand depends on data growth and on the spending cycles of the biggest data center operators.
Revenue over the last twelve months came to $12.9 billion. Across three years, revenue grew 27.4% a year. It posts an operating margin of 34.5%, with return on invested capital of 47%. With net debt to EBITDA at negative 0.1 times, cash exceeds debt. The dividend yield is 0.2%.
StocksXray gives Western Digital Corp an X-Ray Score of 55 out of 100 (medium confidence), ahead of 60% of the S&P 500 stocks in its sector. Its strongest lens is growth (75) and its weakest is valuation (38).
Our fair value blend is $157.17 (range $151.40 to $163.00). At $332.00 the stock trades 111% above that blend, so the label is "Overvalued" with high model uncertainty. Fair value is a range, not a price target.
XStocksXray
Western Digital Corp (WDC)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2023
FY2024
FY2025
FY2026
Now
Price
$32.66
$28.53
$56.99
$63.10
$538.83
$332.00
Market cap
$10.3B
$9.1B
$18.6B
$22.7B
$206.4B
$127.2B
P/E
6.7×
–
–
12.3×
22.2×
13.4×
EV / revenue
0.8×
2.3×
3.9×
2.7×
15.9×
9.8×
EV / EBITDA
4.5×
50.4×
148.3×
9.1×
42.6×
26.2×
Price / free cash flow
13.6×
–
–
17.7×
58.8×
36.2×
Free-cash-flow yield
7.3%
−13.5%
−4.2%
5.6%
1.7%
2.8%
Price / book
0.8×
0.8×
1.7×
4.3×
23.3×
14.3×
Dividend yield
–
–
–
0.16%
0.09%
0.17%
Fundamentals checklist ● 7 Good · ● 5 Average · ● 2 Bad · each check graded against the sector
Cash quality
Earnings backed by cash39.6%Bad
Free-cash-flow yield2.8%Average
Risk models
Altman Z score7.0×Good
Piotroski F-Score7 of 9Good
Growth
Revenue growth (3y)27.4%Good
Growth consistency90%Average
Balance sheet
Current ratio1.3×Average
Net debt / EBITDA-0.1×Good
Interest cover27.0×Average
Valuation
Fair value vs price0.5×Bad
EBIT / EV yield3.5%Average
Profitability
Return on invested capital47.3%Good
Operating margin34.5%Good
Gross profitability45.5%Good
Red flags
Possible earnings-quality issue (Beneish M) — M-score -0.18 is above the -1.78 threshold even with sales growth held neutral (-0.50): profits are not well backed by cash or other accounting ratios look unusual.
Heavy dilution — Share count up more than 5% year on year
XStocksXray
Western Digital Corp (WDC)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY23
FY24
FY25
FY26
LTM
Revenue
18,793
6,255
6,317
9,520
12,919
12,919
Gross profit
5,874
1,391
1,773
3,692
6,311
6,311
Operating income
2,391
-548
-403
2,334
4,453
4,453
Net income
1,546
-902
-765
1,643
9,424
9,424
Diluted EPS ($)
4.89
-5.37
-2.61
5.12
24.28
24.69
Free cash flow
758
-1,229
-781
1,279
3,511
3,511
Gross margin
31.3%
22.2%
28.1%
38.8%
48.9%
48.9%
Operating margin
12.7%
−8.8%
−6.4%
24.5%
34.5%
34.5%
Net margin
8.2%
−14.4%
−12.1%
17.3%
72.9%
72.9%
Balance sheet
FY22
FY23
FY24
FY25
FY26
LTM
Total assets
26,259
24,546
24,188
14,002
13,861
13,861
Cash
2,327
2,023
1,551
2,114
1,579
1,579
Total debt
7,022
7,070
7,434
4,711
1,052
1,052
Equity
12,323
10,964
10,818
5,311
8,864
8,864
Dividend per share ($)
0.00
–
–
0.10
0.50
0.50
Revenue and net income US$ billions: navy revenue, teal net income
Margins blue gross, teal operating, brown net
Latest quarters
Mar 2025
Jun 2025
Oct 2025
Jan 2026
Apr 2026
Jul 2026
Revenue ($M)
2,294
2,605
2,818
3,017
3,337
3,747
Growth vs a year earlier
+30.9%
+30.0%
+27.4%
+25.2%
+45.5%
+43.8%
Net income ($M)
520
282
1,182
1,842
3,205
3,195
Diluted EPS ($)
1.42
0.75
3.07
4.73
8.20
–
XStocksXray
Western Digital Corp (WDC)
Peers in Technology Hardware, Storage & Peripherals
Return on invested capital of 47.3% is ahead of 79% of its sector peers.
Operating margin of 34.5% is ahead of 78% of its sector peers.
Revenue growth of 27.4% a year over three years is ahead of 91% of its sector peers.
Holds more cash than debt (net debt to EBITDA of -0.1×).
Piotroski F-Score of 7 out of 9: most of the nine accounting health tests pass.
Risks and weak spots
Earnings backed by cash is weak against Information Technology peers (39.6%).
Fair value vs price is weak against Information Technology peers (0.5×).
The price is above our fair value range, so good news may already be in the price.
Red flag: Possible earnings-quality issue (Beneish M) (M-score -0.18 is above the -1.78 threshold even with sales growth held neutral (-0.50): profits are not well backed by cash or other accounting ratios look unusual.).
Red flag: Heavy dilution (Share count up more than 5% year on year).
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.