Stock fact sheet · data as of
Western Digital Corporation (WDC): fair value, margin of safety and Wheel Score
Technology · Computer Hardware · United States · High Growth
Is WDC undervalued?
WDC has a margin of safety of 34%: the stock closed at 364.10 on 16 Oct 2026 against a GLS average fair value of 555.08. 4 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 9 models disagree widely: DDM gives 8.09 while GLS Growth gives 1,672.28. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files WDC under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for WDC
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 | 49.27 | -86% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 125.66 | -65% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 1,562.47 | +329% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 682.90 | +88% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1,672.28 | +359% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 221.88 | -39% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 369.69 | +2% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 8.09 | -98% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 303.51 | -17% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 1.70 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 643.00 | +77% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health WDC scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 5.9 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 95.0%, ROE 106.3%, ROA 68.0% - with debt at 0.12 times equity and a free-cash-flow yield of 2.4%.
The dividend yield is 0.15% with a payout ratio of 2% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Cloud 89%, Client Devices 6%, Retail Products 5% (fiscal year FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 6/10 on the GLS smart-money scales; the last recorded insider buy was on 20 Sep 2026; the last recorded Congressional buy was on 17 Jul 2026.
| Piotroski F-score | 8 / 9 | ROIC | 95.0% |
|---|---|---|---|
| GLS Moat | 5.9 / 10 | ROE | 106.3% |
| Debt / equity | 0.12 | ROA | 68.0% |
| Free-cash-flow yield | 2.4% | Payout ratio | 2% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 6 / 10 |
Wheel Score 83: Prime
WDC scores 83 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (18/20), the GLS moat (9/15), the option premium on offer (15/20) and how easily the stock trades (17/20).
Implied volatility is 81% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (15 of 20) because volatility this high usually comes with a reason. The option chain is deep: 148,563 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 6.7M shares a day on a market cap of $136.3B, with a beta of 2.17 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 34% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 9 / 15 | moat 5.9/10 | |
| Premium | 15 / 20 | implied volatility 81% | |
| Stability | 17 / 20 | 6.7M shares/day, $136.3B cap, beta 2.17 |
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
Western Digital Corporation reports earnings on 22 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Computer Hardware
The 12 companies below are the closest to Western Digital Corporation by market cap within the Computer Hardware 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 |
|---|---|---|---|---|---|
| STX Seagate Technology Holdings plc | 713.54 | 375.66 | -90% | 59Fair | $162.3B |
| SNDK Sandisk Corporation | 1,403.34 | 2,168.82 | +35% | 78Good | $202.8B |
| ANET Arista Networks, Inc. | 185.58 | 109.22 | -70% | 60Fair | $234.1B |
| HPE Hewlett Packard Enterprise Company | 58.63 | 33.75 | -74% | 57Fair | $77.8B |
| DELL Dell Technologies Inc. | 474.06 | 442.84 | -7% | 75Good | $301.4B |
| P Everpure, Inc. | 141.46 | 14.70 | -863% | 56Fair | $47.1B |
| NTAP NetApp, Inc. | 214.70 | 122.32 | -76% | 66Good | $42.2B |
| HPQ HP Inc. | 30.85 | 45.36 | +32% | 87Prime | $27.8B |
| SMCI Super Micro Computer, Inc. | 35.78 | 107.57 | +67% | 45Weak | $23.5B |
| LOGI Logitech International S.A. | 105.16 | 112.89 | +7% | 82Prime | $15.1B |
| IONQ IonQ, Inc. | 34.35 | - | - | 45Weak | $13.9B |
| QNT Quantinuum Inc. Class A Common Stock | 33.03 | 12.26 | -169% | 39Weak | $8.7B |
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Start free See the Sunday ScanQuestions about WDC
Is WDC undervalued right now?
By the GLS models, yes: at 364.10 the stock is 34% below the average fair value of 555.08 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of WDC and what does it mean?
WDC scores 83 out of 100 (Prime). 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 WDC?
555.08 per share as of 16 Oct 2026 - the simple average of the 9 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 Western Digital Corporation report earnings next?
The next earnings report is due on 22 Oct 2026 (after the close), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does WDC have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 148,563 open interest across all expiries and implied volatility of 81% 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.