WDC

Western Digital Corporation

$352.21

+6.09% 2026-10-19

Information TechnologyS&P 500

1M 3M 6M 1Y 2Y

WDCSPY

-9.0%

-20.2%

-27.7%

-5.8%

YTD

+104.7%

+179.6%

Grades vs sector

Momentum

96th pct in sector

A+

12-1 return: +203.1%
Percentile within its GICS sector across the S&P 1500.

Growth

88th pct in sector

A-

Revenue growth (YoY): +43.8%
Percentile within its GICS sector across the S&P 1500.

Value

66th pct in sector

Forward E/P: 10.0% · EBITDA/EV: 4.2%
Percentile within its GICS sector across the S&P 1500.

Profitability

99th pct in sector

A+

Profit margin: +72.9% · Return on equity: +130.9%
Percentile within its GICS sector across the S&P 1500.

Revisions

no data

–

EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Held by 1 of 3 live models: Momentum Top 15.

Momentum Top 15

6.7% of the book · rank 5 of 499

Held Quality Growth

rank 59 of 360 · Composite (0-1) 0.7

Momentum Blend

not in the current book

Why it's in Momentum Top 15 #5 of 499

Qualified on 12-1 momentum of +275.9% (its gain from 12 months to 1 month before 2026-09-30). Ranked 5th of 499 at the 2026-09-30 rebalance.

What would knock it out: Drops out if it falls outside the top 15 at the next rebalance (Oct 30). In the latest preview (2026-10-16) it ranks 7th.

Key stats

Market cap$131.8B

P/E (trailing)13.1

P/E (forward)10.6

52-week range117.23 – 799.87

Revenue growth (YoY, latest qtr)+43.8%

Dividend yield0.18%

Analyst consensusStrong Buy (24)

Mean price target$652.04 (+85%)

Valuation & fundamentals

Bottom line

Looks undervalued

Model read-out from the numbers below, not advice. Score +3 (DCF counts double).

•DCF (base case)above the price by 4%

▲Forward P/E vs sector10.6x vs median 16.9x

▲Piotroski F-score7/9

▲Altman Z19.0 (safe)

▲Net debt / EBITDA-0.1x

▲Analyst target+85% (24 analysts)

Discounted cash flow

Bear

$178

-50%

growth 18% · disc. 14.0% · term. 2.0%

Base

$366

+4%

growth 30% · disc. 13.0% · term. 2.5%

Bull

$620

+76%

growth 38% · disc. 12.0% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal

Today's price assumes free cash flow grows about 22% a year for 10 years.

Implied

+22%/yr

FCF, last 3 yrs

n/a

FCF, last 5 yrs

+36%/yr

Revenue, last 3 yrs

+27%/yr

Revenue, last 5 yrs

-5%/yr

Same inputs as the DCF above: trailing free cash flow 3.5B, 13.0% discount rate, 2.5% growth after year 10, net cash and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2026; "n/a" means too little history or a negative starting year.

Edit assumptions · recalculates instantly

Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (FY to 2026-07-03). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 2.17 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Information Technology

P/E (trailing)

sector median 35.9× · 5th pct

13.1×
cheaper

Forward P/E

sector median 16.9× · 16th pct

10.6×
cheaper

EV / EBITDA

sector median 20.8× · 62nd pct

27.2×
pricier

Price / sales

sector median 4.6× · 78th pct

10.2×
pricier

Price / book

sector median 5.1× · 85th pct

14.9×
pricier

FCF yield

sector median 3.5% · 41st pct

2.7%
pricier

Forward EPS $33.25 vs trailing $26.92 (+24% expected growth). Forward P/E uses analysts' next-12-month estimate.

Backlog (remaining performance obligations)

RPO

$17.0M

as of 2022-12-30

vs a year ago

-67%

YoY

× TTM revenue

0.00×

coverage

21-04

21-07

21-10

21-12

22-04

22-07

22-09

22-12

Contracted revenue not yet recognized, from SEC filings (XBRL tag RevenueRemainingPerformanceObligation).

Quality & financial health

Gross margin

48.9%

Operating margin

34.5%

FCF margin

27.2%

Net margin

72.9%

Return on equity

106.3%

Return on invested capital

50.8%

Net debt / EBITDA

-0.1×

Current ratio

1.3×

Interest cover

27.0×

Cash conversion (OCF/NI)

0.4×

Piotroski F-score 7/9 · last two fiscal years

✓ Positive net income✓ Positive operating cash flow✓ Return on assets improved✗ Cash flow above net income✓ Long-term debt / assets fell✓ Current ratio improved✗ No share dilution✓ Gross margin improved✓ Asset turnover improved

Altman Z-score 19.0 (safe zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target

$652

+85%

Analysts

Strong Buy

Range

$420–$1,050

low – high

● price · ◆ mean target

Annual history

FY	Revenue	Net income	Free cash flow
2026	$12.9B	$9.4B	$3.5B
2025	$9.5B	$1.9B	$1.3B
2024	$6.3B	$-798.0M	$-781.0M
2023	$6.3B	$-1.7B	$-1.2B
2022	$18.8B	$1.5B	$758.0M
2021	$16.9B	$821.0M	$752.0M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +27.4%.

Earnings

Next report: 2026-10-22 · after close · EPS est 4.08

EstimateActual (beat)Actual (miss)

Report	EPS est	Actual	Surprise
2026-08-05	3.30	3.56	+7.9%
2026-04-30	2.39	2.72	+13.6%
2026-01-29	1.93	2.13	+10.5%
2025-10-30	1.58	1.78	+12.9%
2025-07-30	1.48	1.66	+12.1%
2025-04-30	1.11	1.36	+22.7%
2025-01-29	1.82	1.77	-2.7%
2024-10-24	1.71	1.78	+4.0%

Quarterly revenue

Quarter	Revenue	YoY
2026-06-30	$3.7B	+43.8%
2026-03-31	$3.3B	–
2025-12-31	$3.0B	–
2025-09-30	$2.8B	–
2025-06-30	$2.6B	–

Analyst actions

Wells Fargo

2026-10-16 · main

Overweight → Overweight
PT $450

UBS

2026-10-12 · main

Neutral → Neutral
PT $470

Citigroup

2026-08-07 · main

Buy → Buy
PT $740

TD Cowen

2026-08-06 · main

Buy → Buy
PT $540

UBS

2026-08-06 · main

Neutral → Neutral
PT $525

Rosenblatt

2026-08-06 · main

Buy → Buy
PT $800

Recent dividends

2026-09-08: $0.150 · 2026-06-05: $0.150 · 2026-03-05: $0.125 · 2025-12-04: $0.125 · 2025-09-04: $0.100 · 2025-06-04: $0.100 · 2020-04-02: $0.378 · 2020-01-02: $0.378

Insider trades

Tregillis Cynthia L

Chief Legal Officer & Corp Sec · 2026-09-04

SELL
$194.9K

Gubbi Vidyadhara K

Chief of Global Operations · 2026-09-04

SELL
$825.5K

Streeter Stephanie A

Director · 2026-09-01

SELL
$728.0K

Streeter Stephanie A

Director · 2026-08-31

SELL
$894.1K

Streeter Stephanie A

Director · 2026-08-31

SELL
$897.2K

Tregillis Cynthia L

Chief Legal Officer & Corp Sec · 2026-08-27

SELL
$481.7K

Tregillis Cynthia L

Chief Legal Officer & Corp Sec · 2026-08-26

SELL
$214.6K

Tregillis Cynthia L

Chief Legal Officer & Corp Sec · 2026-08-24

SELL
$305.2K

Tregillis Cynthia L

Chief Legal Officer & Corp Sec · 2026-08-21

SELL
$112.2K

Tan Irving

Director, Chief Executive Officer · 2026-08-11

SELL
$1.1M

Tan Irving

Director, Chief Executive Officer · 2026-08-11

SELL
$437.4K

Tan Irving

Director, Chief Executive Officer · 2026-08-11

SELL
$815.8K

Research

Momentum Top 15: the October 2026 book, a rough start, and what the backtest says to expect2026-10-18

News

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Insider Monkey · 18h ago

Chip Stocks Set to Snap Longest Losing Streak Since 2008

Barrons.com · 21h ago

Memory-Chip Stocks Lead Tech Rebound

The Wall Street Journal · 22h ago

Why is Western Digital stock surging today?

Investing.com · 22h ago

Is Seagate Stock Still Leading Its Industry?

Trefis · 23h ago

Stats refreshed 2026-10-19 17:46:57 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

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Coteau Systematic StrategiesSystematic equity research and model portfolios.
Coteau Systematic Strategies publishes research, model portfolios and tools. It does not manage money or offer investment advice. Model results are hypothetical. Data: Yahoo Finance (delayed), SEC EDGAR.

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