Stock · WDC · Technology

Western Digital Corporation

United States · Large Cap · listed since 1987 · Revenue 12 mo. $14.5B

Price as of 11/06/2026

StockScorer score
9.1
of 10 10 of 11 points High Match To the score
Price
$263.78
1 Y +51.6%
Market cap
$106.8B
Phase
Scaling
revenue growing, core business only recently profitable
Revenue +27.4% a year (3 years)EBIT margin 34.5%Payout 71.6% of operating cash flow

Western Digital Corporation engages in the development, manufacture, and sale of data storage devices and solutions based on hard disk drive (HDD) technology in the United States, Asia, Europe, the Middle East, and Africa.

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Western Digital Corporation engages in the development, manufacture, and sale of data storage devices and solutions based on hard disk drive (HDD) technology in the United States, Asia, Europe, the Middle East, and Africa. The company offers internal HDDs, data center drives, data center platforms, external drives, portable drives, NAS for home and office, and accessories. It sells its data storage devices and solutions through its computer sales personnel, dealers, distributors, retailers, and subsidiaries. The company has a collaboration with Open Quantum Design for the development of quantum error correction technology and related systems to advance reliable quantum computing. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.

Original text from the data provider

Summary

Western Digital Corporation is around the middle of the Technology sector overall

52.2 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 14.0% FCF growth a year: more than over the last 10 years, less than over the last 5 years.

If free cash flow stays at €3.2B (2026), it supports €35B. The remaining €60.8B of the market value assume it grows 14.0% a year for 10 years and not at all afterwards.

Required FCF growth per year

14.0%

no growth afterwards

Market value breakdown€95.8B market value, price as of 11/06/2026

€35B without growth
€60.8B priced-in growth
  • 5 yrs achieved 106.9%
  • 10 yrs achieved −7.8%
  • priced in 14.0%

Valuation against its own history

Price to operating cash flow 20.8×, within its usual range.

Middle half of 14 quarters: 7.7× to 29.3×, median 16.2×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

1 sign supports the expectation, 4 speak against it.

What supports it

with respect to the priced-in expectation

  • Low capital needs capex median 4.4% of revenue (10 years)

What speaks against it

with respect to the priced-in expectation

  • Share count rising despite money spent on own shares shares +6.7% year on year
  • Earnings well above cash flow Sloan ratio 39.4%
  • Volatile earnings 4 drops or sign changes in up to 10 years
1 more
  • Profit well above operating result 1.74 times EBIT, last 12 months

Since the last quarter

Q2 → Q3 2026

Mostly better than the previous quarter: 5 of 6 changes for the better.

  • Revenue, 12 mo.$12.9B → $14.5B+12.1%better
  • FCF, 12 mo.$3.5B → $4.3B+22.2%better
  • Gross margin48.9% → 52.6%+3.8 ppbetter
  • EBIT margin34.9% → 39.8%+4.9 ppbetter
  • FCF margin27.2% → 29.6%+2.4 ppbetter
  • Shares outstanding376M → 384M+2.1%worse

2 more unchanged: Net debt, Return on equity

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability79.1above the middleEarns more than the sector: Return on equity 106.32%, sector 14.60%.
MetricStockSector medianPosition in sector
Return on equity106.32%14.60%Rank 98
Return on capital (Greenblatt)115.06%29.77%Rank 83
EBIT margin34.47%17.40%Rank 87
FCF margin27.18%18.54%Rank 76
Gross margin48.85%48.47%Rank 51
Growth79.5above the middleGrows faster than the sector: Earnings growth, 5 years per year 56.07%, sector 14.07%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year35.70%12.70%Rank 89
Earnings growth, 3 years per yeardoes not count towards the rank–9.54%
Earnings growth, 5 years per year56.07%14.07%Rank 94
Sustainable growth (ROE × retained earnings)3.24%2.87%Rank 56
Valuation59.5around the middleValued about like the sector.
MetricStockSector medianPosition in sector
Earnings yield9.33%2.64%Rank 96
FCF yield3.29%3.06%Rank 52
EV/saleslower is better8.225.18Rank 32
EV/EBITlower is better23.8626.24Rank 58
Momentum26.8below the middleShare price doing worse than the sector: Distance from 52-week high −64.65%, sector −33.23%.
MetricStockSector medianPosition in sector
Share price, 1 year51.63%−0.59%Rank 89
Share price, 6 months−44.56%−4.46%Rank 7
Share price, 3 months−34.13%−5.84%Rank 8
Distance from 52-week high−64.65%−33.23%Rank 4
Quality18.4below the middleQuality below the sector: Accruals (Sloan) 42.52%, sector 1.65%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better42.52%1.65%Rank 5
Change in share countlower is better6.69%−0.17%Rank 7
Dividend streak in years–8Rank 18
Price reaction to results, market-adjusted−2.48%−1.57%Rank 44
Balance sheet & risk49.9around the middleRisk about like the sector.
MetricStockSector medianPosition in sector
Equity ratio63.95%53.98%Rank 71
Net debt/EBITDAlower is better−0.05−0.20Rank 47
Debt to equitylower is better0.120.33Rank 72
Volatility, 1 yearlower is better81.06%50.37%Rank 10

Ten years in figures

Revenue from $19.1B (2017) to $12.9B (2026), −4.2% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCFSharesNet debt
201719.110.2%$2.9B296M$6.8B
201820.617.5%$3.4B307M$6.2B
201916.60.5%$790.0M292M$7.1B
202016.72.0%$177.0M298M$6.5B
202116.97.2%$895.0M309M$5.4B
202218.812.7%$773.0M316M$4.7B
20236.3−8.8%−$1.2B318M$6.5B
20246.3−6.4%−$781.0M326M$6.3B
20259.524.5%$1.3B359M$3.0B
202612.934.5%$3.5B383M−$527.0M
9.1 / 10High MatchStockScorer score10 of 11 points

6 of 7 StockScorer Score rules met · How the score is built

Western Digital Corporation mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 100%This stock · Growth: 50%This stock · Valuation: 100%This stock · Momentum: 100%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Western Digital Corporation's score is built

Western Digital Corporation is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

6 of 7 rules met

10 of 11 points

  1. Free cash flow yield above the sector medianmet2 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%met2 of 2 points
  6. 3-year earnings growth above 12% p.a.no data0 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketmet1 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Western Digital Corporation stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • High-Growth / Rule of 40
  • Undervalued Stocks: Multi-Factor Check
  • Altman Z-Score: Stress Test
  • Magic Formula: Value + Quality
  • Growth Momentum (CAN SLIM principle)
  • Levermann Strategy (13 Criteria)
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Defensive: Low Volatility
  • Dividend Aristocrats & Continuity
  • Dividend Quality: 4 Factors
  • Earnings Quality: Accrual Check (Sloan)
  • Trending Value: Value + Momentum

Western Digital Corporation key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Western Digital Corporation.

MetricStockSector
P/E ratio10.735.1
P/B ratio11.45.5
Return on equity (ROE)106.3%14.6%
Equity ratio63.9%54.0%
Debt-to-equity (D/E)0.120.33
Dividend yield0.2%0.9%

Similar stocks in Technology

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
WDCWestern Digital Corporationthis page
SNDKSandisk CorpHigh9.1
PEverpure, Inc.Low2.7
ANETArista NetworksHigh7.3
DELLDell Technologies Inclocked
STXSeagate Technology PLClocked

Frequently asked questions about Western Digital Corporation stock

How does Western Digital Corporation stock (WDC) score in the StockScorer model?
Western Digital Corporation stock reaches a StockScorer score of 9.1 out of 10, which is a high match with the rule-based strategies. 6 out of 7 flagship profile rules are met.
What is Western Digital Corporation's P/E ratio?
Western Digital Corporation's P/E ratio is 10.7. The Technology sector median is 35.1.
What sector is Western Digital Corporation in?
Western Digital Corporation is assigned to the Technology sector. Its rank within the sector is 52.2 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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