Stock fact sheet · data as of
Workday, Inc. (WDAY): fair value, margin of safety and Wheel Score
Technology · Software - Application · United States · High Growth
Is WDAY undervalued?
Workday, Inc. (WDAY) closed at 188.77 on 16 Oct 2026, 11% above the GLS average fair value of 170.58. Only 3 of the 8 models that produced a number value the shares above the current price. The margin of safety is negative, so the stock fails the "below fair value" rule of the Sunday Scan; a premium of this size is common for companies whose growth the models are conservative about.
There is a wide gap between Lynch (33.77) and Payback Time (451.43). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files WDAY under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for WDAY
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 118.60 | -37% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 54.05 | -71% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 107.72 | -43% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 33.77 | -82% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 307.00 | +63% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 236.38 | +25% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 451.43 | +139% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 55.72 | -70% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -7.02 | -104% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 203.19 | +8% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Workday, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability WDAY scores 7.0/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 6.0%, ROE 8.9%, ROA 3.8% - with debt at 0.49 times equity and a free-cash-flow yield of 5.8%.
Workday, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Subscription Services 93%, Professional Services 7% (quarter Q2 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 18 Sep 2026; the last recorded Congressional buy was on 18 Aug 2026.
| Piotroski F-score | 8 / 9 | ROIC | 6.0% |
|---|---|---|---|
| GLS Moat | 7.0 / 10 | ROE | 8.9% |
| Debt / equity | 0.49 | ROA | 3.8% |
| Free-cash-flow yield | 5.8% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 76: Good
With a Wheel Score of 76 - the Good band - Workday, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 8/25, Health 18/20, Moat 11/15, Premium 20/20, Stability 20/20; Value (8/25) scores lowest.
Implied volatility is 49% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 138,610 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 2.8M shares a day on a market cap of $49.4B, with a beta of 1.07; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 8 / 25 | -11% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 11 / 15 | moat 7.0/10 | |
| Premium | 20 / 20 | implied volatility 49% | |
| Stability | 20 / 20 | 2.8M shares/day, $49.4B cap, beta 1.07 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 24 Nov 2026 (after the close), 39 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to Workday, Inc. by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
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| NBIS Nebius Group N.V. | 188.41 | 9.50 | -1883% | 50Fair | $45.2B |
| MSTR Strategy Inc | 151.29 | - | - | 45Weak | $60.9B |
| ROP Roper Technologies, Inc. | 372.69 | 587.95 | +37% | 92Prime | $36.9B |
| BSP Bending Spoons S.p.A. | 55.77 | 17.35 | -221% | 32Weak | $35.4B |
| STRC Strategy Inc | 99.74 | - | - | 38Weak | $33.0B |
| STRF MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock | 103.34 | - | - | 35Weak | $30.7B |
| INTU Intuit Inc. | 330.17 | 478.07 | +31% | 93Prime | $88.2B |
| ZM Zoom Communications, Inc. | 94.47 | 199.41 | +53% | 86Prime | $27.7B |
| CDNS Cadence Design Systems, Inc. | 324.38 | 109.99 | -195% | 62Fair | $89.3B |
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Start free See the Sunday ScanQuestions about WDAY
Is WDAY undervalued right now?
No: at 188.77 the stock trades 11% above the GLS average fair value of 170.58 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of WDAY and what does it mean?
WDAY scores 76 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for WDAY?
170.58 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Workday, Inc. report earnings next?
The next earnings report is due on 24 Nov 2026 (after the close), 39 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does WDAY have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 138,610 open interest across all expiries and implied volatility of 49% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.