Latest Ratios: P/E Ratio 55.7x · EV/EBITDA 29.1x · 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 | $37.6B | $46.3B | $70.5B | $77.2B | $46.2B | $64.3B | $53.9B | $41.9B | $39.4B | $24.9B | $16.5B |
| Enterprise Value | $39.9B | $48.6B | $72.4B | $78.5B | $47.6B | $64.8B | $54.8B | $42.8B | $39.9B | $25.3B | $16.5B |
| P/E Ratio → | 55.68 | 68.07 | 134.39 | 55.87 | — | 2108.42 | — | — | — | — | — |
| P/S Ratio | 3.94 | 4.84 | 8.35 | 10.64 | 7.44 | 12.51 | 12.49 | 11.56 | 13.94 | 11.62 | 10.46 |
| P/B Ratio | 4.85 | 5.93 | 7.81 | 9.55 | 8.28 | 14.17 | 16.45 | 16.87 | 20.09 | 15.76 | 12.90 |
| P/FCF | 13.55 | 16.66 | 32.23 | 40.41 | 35.65 | 46.63 | 53.28 | 67.65 | 99.96 | 79.54 | 72.29 |
| P/OCF | 12.80 | 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 | 29.14 | 35.44 | 97.66 | 168.82 | 335.17 | 284.39 | 1215.83 | — | — | — | — |
| EV / EBIT | 39.01 | 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 | 1.8% | 1.5% | 0.7% | 1.8% | — | 0.0% | — | — | — | — | — |
| FCF Yield | 7.4% | 6.0% | 3.1% | 2.5% | 2.8% | 2.1% | 1.9% | 1.5% | 1.0% | 1.3% | 1.4% |
| Buyback Yield | 7.7% | 6.3% | 1.0% | 0.5% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 7.7% | 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 |
Market saturation and competition
According to recent market data, Workday trades at a P/E of 48.14, a multiple that appears increasingly difficult to justify as revenue growth decelerates and the company faces intensifying competition from both legacy ERP incumbents and agile, AI-native software entrants in the enterprise HCM space.
The current valuation suggests that investors are pricing in a long-term growth trajectory that may not align with the reality of a maturing large-enterprise market. When compared to peers like SAP or Oracle, the premium multiple warrants caution, as any further contraction in growth rates could lead to a significant de-rating of the stock.
Based on reported financial figures, Workday's ROIC has remained stagnant, hovering between 0.3% and 2.5% over the last ten quarters, which suggests that the company is struggling to generate meaningful returns on its invested capital despite its dominant position in the enterprise software market.
The low ROIC is largely a function of the heavy reliance on stock-based compensation, which inflates the equity base and masks the underlying efficiency of the core business. Investors should monitor whether management can improve these returns as the company shifts its focus toward more disciplined margin expansion and operational efficiency.
As reported in recent SEC filings, Workday's asset turnover ratio remains low at 0.15, reflecting the capital-intensive nature of maintaining a global cloud infrastructure and the inherent friction involved in the long-cycle implementation of enterprise-grade financial and human capital management software systems.
The DSO trend, which has fluctuated between 54 and 74 days, indicates that the company's ability to collect on its large-scale contracts is subject to the timing of enterprise billing cycles. This volatility in working capital suggests that the company's cash conversion efficiency is highly sensitive to the macro-environment and the pace of customer onboarding.
As evidenced by financial statements, Workday maintains a manageable debt-to-equity ratio of 0.57, which provides the company with sufficient flexibility to navigate potential market downturns while simultaneously funding aggressive share repurchase programs that have recently reached $1.6 billion in a single quarter.
While the debt levels appear conservative, the rapid depletion of cash reserves to fund buybacks warrants close investigation, as it may limit the company's ability to pursue strategic M&A or respond to unforeseen competitive threats. The interest coverage ratio remains healthy, suggesting that debt service is not currently a primary risk factor.
The most commonly misapplied metric for Workday is GAAP net income, which, as reported in recent filings, is significantly distorted by massive stock-based compensation expenses that do not reflect the company's actual cash-generating power or its true economic profitability for long-term shareholders.
Analysts should instead focus on free cash flow and adjusted operating margins to better understand the underlying health of the subscription business. Relying on GAAP earnings obscures the true cost of talent acquisition and retention, which is a critical, albeit non-cash, expense in the competitive software industry.
Includes 30+ ratios · 16 years · Updated daily
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Quick answers to the most common questions about buying WDAY stock.
Workday, Inc.'s current P/E ratio is 55.7x. The historical average is 86.1x.
Workday, Inc.'s current EV/EBITDA is 29.1x. 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 55.7x. 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.