Latest Ratios: P/E Ratio 103.9x · EV/EBITDA 65.8x · ROE 23.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $180.4B | $22.7B | $18.7B | $9.1B | $10.4B | $16.4B | $9.6B | $10.5B | $18.0B | $19.8B | $8.6B |
| Enterprise Value | $183.4B | $25.7B | $24.9B | $15.6B | $15.7B | $21.7B | $16.1B | $17.6B | $24.1B | $26.6B | $17.5B |
| P/E Ratio → | 103.93 | 12.36 | — | — | 6.91 | 19.94 | — | — | 26.59 | 49.96 | 35.71 |
| P/S Ratio | 18.95 | 2.39 | 2.95 | 1.46 | 0.55 | 0.97 | 0.57 | 0.63 | 0.87 | 1.04 | 0.67 |
| P/B Ratio | 35.97 | 4.28 | 1.73 | 0.83 | 0.85 | 1.53 | 1.00 | 1.05 | 1.56 | 1.74 | 0.78 |
| P/FCF | 140.50 | 17.70 | — | — | 13.41 | 18.32 | 53.99 | 13.28 | 5.29 | 6.88 | 6.18 |
| P/OCF | 106.68 | 13.44 | — | — | 5.51 | 8.64 | 11.60 | 6.78 | 4.27 | 5.77 | 4.36 |
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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.70 | 3.95 | 2.49 | 0.83 | 1.29 | 0.96 | 1.06 | 1.17 | 1.39 | 1.35 |
| EV / EBITDA | 65.84 | 9.22 | 151.13 | 55.59 | 4.72 | 8.94 | 8.46 | 9.25 | 4.25 | 6.52 | 10.79 |
| EV / EBIT | 78.56 | 17.28 | — | — | 6.33 | 17.36 | 43.83 | 96.48 | 8.74 | 16.47 | 41.73 |
| EV / FCF | — | 20.01 | — | — | 20.25 | 24.30 | 90.87 | 22.23 | 7.10 | 9.24 | 12.50 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.8% | 38.8% | 28.1% | 22.2% | 31.3% | 26.7% | 22.6% | 22.6% | 37.3% | 31.8% | 26.4% |
| Operating Margin | 24.5% | 24.5% | -6.4% | -8.8% | 12.7% | 7.2% | 2.0% | 0.5% | 17.5% | 10.2% | 3.6% |
| Net Profit Margin | 19.5% | 19.5% | -12.6% | -26.9% | 8.2% | 4.9% | -1.5% | -4.6% | 3.3% | 2.1% | 1.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.1% | 23.1% | -7.3% | -14.5% | 13.5% | 8.1% | -2.6% | -7.0% | 5.9% | 3.5% | 2.4% |
| ROA | 9.7% | 9.7% | -3.3% | -6.6% | 5.9% | 3.2% | -1.0% | -2.7% | 2.3% | 1.3% | 1.0% |
| ROIC | 13.8% | 13.8% | -1.8% | -2.4% | 10.7% | 5.7% | 1.5% | 0.4% | 15.1% | 7.7% | 2.6% |
| ROCE | 17.5% | 17.5% | -2.2% | -2.7% | 11.3% | 5.7% | 1.5% | 0.4% | 14.4% | 7.6% | 2.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.96 | 0.96 | 0.72 | 0.77 | 0.62 | 0.81 | 1.00 | 1.06 | 0.97 | 1.15 | 1.52 |
| Debt / EBITDA | 1.82 | 1.82 | 47.42 | 30.26 | 2.29 | 3.59 | 5.04 | 5.54 | 1.97 | 3.22 | 10.49 |
| Net Debt / Equity | — | 0.56 | 0.58 | 0.59 | 0.43 | 0.50 | 0.68 | 0.71 | 0.53 | 0.60 | 0.79 |
| Net Debt / EBITDA | 1.07 | 1.07 | 38.02 | 23.04 | 1.59 | 2.20 | 3.43 | 3.72 | 1.09 | 1.67 | 5.46 |
| Debt / FCF | — | 2.31 | — | — | 6.84 | 5.98 | 36.88 | 8.95 | 1.82 | 2.36 | 6.32 |
| Interest Coverage | 4.17 | 4.17 | -0.79 | -1.74 | 8.14 | 3.84 | 0.89 | 0.39 | 4.08 | 1.91 | 1.58 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.08 | 1.08 | 1.32 | 1.45 | 1.81 | 2.00 | 2.05 | 2.22 | 2.39 | 2.55 | 1.81 |
| Quick Ratio | 0.84 | 0.84 | 1.10 | 0.77 | 1.11 | 1.26 | 1.36 | 1.36 | 1.73 | 2.01 | 1.50 |
| Cash Ratio | 0.46 | 0.46 | 0.25 | 0.37 | 0.44 | 0.69 | 0.69 | 0.91 | 1.12 | 1.46 | 1.21 |
| Asset Turnover | — | 0.68 | 0.26 | 0.25 | 0.72 | 0.65 | 0.65 | 0.63 | 0.71 | 0.64 | 0.40 |
| Inventory Turnover | 4.51 | 4.51 | 3.28 | 1.32 | 3.55 | 3.43 | 4.22 | 3.90 | 4.40 | 5.56 | 4.49 |
| Days Sales Outstanding | — | 56.97 | 71.13 | 93.25 | 54.46 | 48.68 | 51.88 | 26.52 | 38.84 | 37.24 | 41.04 |
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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.0% | 0.2% | — | — | — | — | 6.2% | 5.6% | 3.3% | 2.9% | 5.4% |
| Payout Ratio | 2.4% | 2.4% | — | — | — | — | — | — | 87.9% | 144.6% | 191.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.0% | 8.1% | — | — | 14.5% | 5.0% | — | — | 3.8% | 2.0% | 2.8% |
| FCF Yield | 0.7% | 5.7% | — | — | 7.5% | 5.5% | 1.9% | 7.5% | 18.9% | 14.5% | 16.2% |
| Buyback Yield | 0.1% | 0.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 5.4% | 3.3% | 0.0% | 0.7% |
| Total Shareholder Yield | 0.1% | 0.8% | 0.0% | 0.0% | 0.0% | 0.0% | 6.2% | 10.9% | 6.6% | 2.9% | 6.1% |
| Shares Outstanding | — | $359M | $326M | $318M | $316M | $309M | $298M | $292M | $307M | $296M | $242M |
Cyclical NAND pricing volatility
According to current market data, Western Digital trades at a trailing P/E of 114.54, which appears to price in a significant earnings recovery rather than historical averages, suggesting investors are anticipating sustained margin expansion as the company navigates its transition toward a split business model.
The elevated P/E and P/S multiples relative to historical norms indicate that the market is currently valuing the company on peak-cycle expectations rather than normalized earnings power. This valuation warrants caution, as it implies that any deviation from the current growth trajectory in NAND pricing or enterprise HDD demand could lead to a rapid multiple compression.
Based on reported figures, Western Digital's ROIC has trended upward from a negative 0.9% in 2024Q2 to 9.3% in 2026Q3, signaling that the company is finally beginning to generate returns that exceed its cost of capital after a prolonged period of cyclical underperformance.
The improvement in ROIC is largely driven by the aggressive rationalization of the asset base and the recent surge in operating margins. Investors should monitor whether this trend is sustainable or if it is merely a temporary byproduct of the current favorable pricing environment in the storage industry.
As reported in financial statements, the cash conversion cycle has fluctuated wildly from 196 days in 2024Q3 to 38 days in 2026Q3, highlighting the inherent difficulty in managing inventory levels across both the highly cyclical NAND market and the more stable HDD enterprise segment.
The significant reduction in the cash conversion cycle suggests improved inventory management and better leverage over suppliers during the current upcycle. However, the historical volatility in DIO and DSO indicates that the company remains highly susceptible to sudden shifts in OEM demand and channel inventory build-ups.
Based on recent SEC filings, Western Digital has successfully reduced its debt-to-equity ratio to 0.16 in 2026Q3, a dramatic improvement from the 0.96 level observed in 2024Q2, which significantly bolsters the company's solvency profile ahead of its planned corporate separation.
This rapid deleveraging appears to be a strategic move to clean up the balance sheet, likely to facilitate the independent valuation of the HDD and Flash business units. The reduced debt burden provides a much-needed buffer against the cyclical downturns that have historically plagued the company's cash flow.
The P/E ratio is frequently misapplied to Western Digital, as it obscures the extreme earnings volatility caused by cyclical NAND price swings and non-recurring inventory write-downs, making the metric a poor indicator of the company's true underlying cash-generating capability throughout the full industry cycle.
Analysts should instead prioritize EV/EBITDA or price-to-book metrics, which better account for the capital-intensive nature of the business and the significant fluctuations in depreciation and amortization. Relying on P/E during cyclical troughs or peaks often leads to distorted valuation conclusions that fail to capture the reality of the hardware manufacturing cycle.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying WDC stock.
Western Digital Corporation's current P/E ratio is 103.9x. The historical average is 13.0x. This places it at the 100th percentile of its historical range.
Western Digital Corporation's current EV/EBITDA is 65.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.6x.
Western Digital Corporation's return on equity (ROE) is 23.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 20.6%.
Based on historical data, Western Digital Corporation is trading at a P/E of 103.9x. This is at the 100th 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 0.02% with a payout ratio of 2.4%.
Western Digital Corporation has 38.8% gross margin and 24.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Western Digital Corporation's Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.