WDC Stock Analysis: Western Digital | NASDAQ
Computer Hardware | NASDAQ, USA | Market Cap: 159.128m USD | 12M Return: 299.4% | US9581021055 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.66B
Qual. Beats: 6
Rev. Trend: 51.5%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Western Digital Corporation (NASDAQ: WDC) is a data storage company that designs, manufactures, and sells devices and solutions built primarily on hard disk drive (HDD) technology. Its product portfolio spans internal HDDs, data center drives and platforms, external and portable drives, NAS systems for home and office use, and related accessories. The company distributes its products through computer manufacturers, dealers, distributors, retailers, and its own sales force, serving customers across the United States, Asia, Europe, the Middle East, and Africa.
The HDDs are typically deployed in environments requiring high-capacity, cost-efficient bulk storage, such as enterprise data centers and cloud infrastructure, where they coexist with and often complement solid-state drives (SSDs). The storage hardware industry is highly capital-intensive, with manufacturers competing on storage density, cost per terabyte, and reliability, while also contending with the ongoing shift of workloads toward flash-based media.
Western Digital was founded in 1970 and is headquartered in San Jose, California. Beyond its core storage business, the company has a collaboration with Open Quantum Design focused on quantum error correction and related systems, aimed at advancing reliable quantum computing. The company is classified within the GICS Information Technology sector under the Technology Hardware, Storage & Peripherals sub-industry and trades as a mega-cap stock following its 1987 IPO.
- AI-driven data center demand lifts HDD capacity sales
- Seagate competition and SSD encroachment pressure market share
- Free cash flow surge funds buybacks and debt reduction
| Net Income: 9.42b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.23 > 0.02 and ΔFCF/TA 14.10 > 1.0 |
| NWC/Revenue: 10.79% < 20% (prev 3.84%; Δ 6.95% < -1%) |
| CFO/TA 0.26 > 3% & CFO 3.64b > Net Income 9.42b |
| Net Debt (-527.0m) to EBITDA (8.69b): -0.06 < 3 |
| Current Ratio: 1.33 > 1.5 & < 3 |
| Outstanding Shares: last quarter (376.0m) vs 12m ago 3.87% < -2% |
| Gross Margin: 48.85% > 18% (prev 37.74%; Δ 11.11% > 0.5%) |
| Asset Turnover: 92.73% > 50% (prev 81.39%; Δ 11.34% > 0%) |
| Interest Coverage Ratio: 53.66 > 6 (EBIT TTM 8.32b / Interest Expense TTM 155.0m) |
| A: 0.10 (Total Current Assets 5.63b - Total Current Liabilities 4.24b) / Total Assets 13.9b |
| B: 0.72 (Retained Earnings 10.00b / Total Assets 13.9b) |
| C: 0.60 (EBIT TTM 8.32b / Avg Total Assets 13.9b) |
| D: 1.77 (Book Value of Equity 8.86b / Total Liabilities 5.00b) |
| Altman-Z'' = 8.89 = AAA |
| DSRI: 1.20 (Receivables 2.03b/1.49b, Revenue 12.9b/11.4b) |
| GMI: 0.77 (GM 37.74% / 48.85%) |
| AQI: 1.02 (AQ_t 0.41 / AQ_t-1 0.41) |
| SGI: 1.13 (Revenue 12.9b / 11.4b) |
| TATA: 0.42 (NI 9.42b - CFO 3.64b) / TA 13.9b) |
| Beneish M = -2.91 (Cap -4..+1) = A |
As of September 22, 2026, the stock is trading at USD 448.17 with a total of 7,635,992 shares traded. Over the past week, the price has changed by +4.97%, over one month by -2.42%, over three months by -38.81% and over the past year by +299.43%.
Current recommended Stop Loss: 395.60 (which is 11.7% or 1.8 ATR below the current price).
Western Digital has received a consensus analysts rating of 4.48. Therefore, it is recommended to buy WDC.
- StrongBuy: 17
- Buy: 4
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 664.9 | 48.4% |
P/E Trailing = 16.3952
P/E Forward = 21.2766
P/S = 12.3174
P/B = 17.9522
P/EG = 0.8403
Revenue TTM = 12.9b USD
EBIT TTM = 8.32b USD
EBITDA TTM = 8.69b USD
Long Term Debt = unknown (0.0)
Short Term Debt = 1.05b USD (from shortTermDebt, last quarter)
Debt = 1.05b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -527.0m USD (calculated: Debt 1.05b - CCE 1.58b)
Enterprise Value = 159b USD (159b + Debt 1.05b - CCE 1.58b)
Interest Coverage Ratio = 53.66 (Ebit TTM 8.32b / Interest Expense TTM 155.0m)
EV/FCF = 49.24x (Enterprise Value 159b / FCF TTM 3.22b)
FCF Yield = 2.03% (FCF TTM 3.22b / Enterprise Value 159b)
FCF Margin = 24.93% (FCF TTM 3.22b / Revenue TTM 12.9b)
Net Margin = 72.95% (Net Income TTM 9.42b / Revenue TTM 12.9b)
Gross Margin = 48.85% ((Revenue TTM 12.9b - Cost of Revenue TTM 6.61b) / Revenue TTM)
Gross Margin QoQ = 54.12% (prev 50.22%)
Tobins Q-Ratio = 11.44 (Enterprise Value 159b / Total Assets 13.9b)
Interest Expense / Debt = 14.73% (Interest Expense 155.0m / Debt 1.05b)
Taxrate = 4.86% (481.0m / 9.90b)
NOPAT = 7.91b (EBIT 8.32b * (1 - 4.86%))
Current Ratio = 1.33 (Total Current Assets 5.63b / Total Current Liabilities 4.24b)
Debt / Equity = 0.12 (Debt 1.05b / totalStockholderEquity, last quarter 8.86b)
Debt / EBITDA = -0.06 (Net Debt -527.0m / EBITDA 8.69b)
Debt / FCF = -0.16 (Net Debt -527.0m / FCF TTM 3.22b)
Total Stockholder Equity = 7.94b (last 4 quarters mean from totalStockholderEquity)
RoA = 67.65% (Net Income 9.42b / Total Assets 13.9b)
RoE = 118.6% (Net Income TTM 9.42b / Total Stockholder Equity 7.94b)
RoCE = 104.7% (EBIT 8.32b / Capital Employed (Equity 7.94b + L.T.Debt 0.0))
RoIC = 78.93% (NOPAT 7.91b / Invested Capital 10.0b)
WACC = 15.35% (E(159b)/V(160b) * Re(15.36%) + D(1.05b)/V(160b) * Rd(14.73%) * (1-Tc(0.05)))
Discount Rate = 15.36% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 94.02 | Cagr: 5.27%
[DCF] Terminal Value 58.66% ; FCFF base≈2.44b ; Y1≈2.80b ; Y5≈4.12b
[DCF] Fair Price = 77.61 (EV 27.5b - Net Debt -527.0m = Equity 28.0b / Shares 360.5m; r=15.35% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.91 | # QB: 6
Revenue Correlation: 51.45 | Revenue CAGR: 5.92% | SUE: 0.02 | # QB: 0
EPS current Quarter (2026-09-30): EPS=4.04 | Chg30d=+9.01% | Revisions=+81% | Analysts=19
EPS next Quarter (2026-12-31): EPS=4.67 | Chg30d=+10.32% | Revisions=+69% | Analysts=19
EPS current Year (2027-06-30): EPS=20.09 | Chg30d=+8.90% | Revisions=+84% | GrowthEPS=+96.6% | GrowthRev=+48.6%
EPS next Year (2028-06-30): EPS=31.75 | Chg30d=+16.95% | Revisions=+77% | GrowthEPS=+58.0% | GrowthRev=+36.8%
[Analyst] Revisions Ratio: +91% (up=51, down=1)