WDC
Western Digital
$428.14
▼ 5.2%Updated Aug 7, 11:30 AM ET
WDC at a glance — five pillars scored 0–100 from real filed financials.
Overall: Strong · 82/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 1160.7% over the last 12 months
Market Cap
$234.76B
P/E
21.75x
Forward P/E (est.)
15.53x
ROE
90.8%
Revenue Growth
32.0%
EPS Growth
269.2%
Profit Margin
55.3%
FCF Yield
-0.8%
Debt / Equity
0.85x
ROIC
16.0%
Interest Coverage
7.48x
Current Ratio
1.49x
Dividend Yield
0.1%
Implied Growth (rev. DCF)
8.4%
Rating Score
82/100
Western Digital (WDC) is a mega-cap company in the Technology Hardware, Storage & Peripherals industry, part of the Information Technology sector of the S&P 500, with a market value around $234.76B.
In its latest reported year it generated about $9.52B in revenue and $1.89B in net profit.
Our model rates WDC Strong (82/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (9 years of history).
The numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
29.7% average over the last 3 years
±5.9 pts around 29.0% across 9 years
grew in 6 of the last 8 year-over-year periods
positive in 7 of 9 years
16.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what WDC's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. WDC trades near $428.14, around its 50-day average ($529.63) and 200-day average ($290.56). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 51 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. WDC's is $69.48 (~16.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month WDC found buyers near $480.87 (support) and sellers near $799.87 (resistance); its 52-week range is $63.01–$799.87. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
-13.4%
Revenue moved from $19.09B in 2017 to $9.52B in 2025, a -8.3% compound annual growth rate. The most recent year grew a strong 32.0% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
38.8%
Operating Margin
24.5%
Net Margin
19.8%
ROE
90.8%
Western Digital keeps about 55.3% of each sales dollar as net profit, with a 38.8% gross margin and 24.5% operating margin. Return on equity is 90.8% and return on invested capital about 16.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$1.58B
Net Debt
-$469.00M
Net cash position
Net Debt / EBITDA
-0.2x
Debt / Equity
0.85x
Leverage: debt-to-equity is 0.9x, and operating profit covers interest about 7.5x, with a current ratio of 1.5x. That is a moderate, manageable debt load for most businesses. It carries roughly $1.58B of total debt against $2.05B of cash.
Operating CF
$1.69B
Free Cash Flow
$1.28B
FCF Margin
13.4%
In the latest year Western Digital produced about $1.69B of operating cash flow and $1.28B of free cash flow after capital spending. That is a free-cash-flow yield of about -0.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
0.1%
Per share (latest FY)
$0.10
Total paid (latest FY)
$44.00M
History on record
5 years
dividend uses 3% of free cash flow
2% of net income paid out
no current raise streak
payout was cut at least once in the last 5 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
21.75x
P/S
23.66x
P/B
2.51x
EV / EBITDA
—
WDC trades at 21.7x trailing earnings (about 15.5x on estimated forward earnings), 23.7x sales, and 2.5x book value. Reverse-engineering today's price implies the market expects roughly 8.4% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$153.66
Current price
$428.14
Starting FCF (latest 10-K)
$1.28B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where WDC sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How WDC stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), WDC ranks #7 of 230 by our overall rating. It trades at a discount versus the sector on earnings (21.7x P/E vs. 38.9x median) with a higher return on equity (90.8% vs. 17.5%) and faster revenue growth (32.0% vs. 17.7%).
P/E vs sector
21.7x
median 38.9x
ROE vs sector
90.8%
median 17.5%
Growth vs sector
32.0%
median 17.7%
Sector rank
#7
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $428.14 today · expected CAGR -16% – -6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $12.57B | $16.59B | $21.90B | $28.90B | $38.15B |
| Net income | $2.51B | $3.32B | $4.38B | $5.78B | $7.63B |
| EPS | $4.58 | $6.05 | $7.99 | $10.54 | $13.92 |
| Share price (low) | $59.59 | $78.66 | $103.82 | $137.05 | $180.90 |
| Share price (high) | $100.84 | $133.11 | $175.70 | $231.93 | $306.15 |
| CAGR (low–high) | -86% / -76% | -57% / -44% | -38% / -26% | -25% / -14% | -16% / -6% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for WDC:
- Revenue is growing 32.0% a year, a sign of real demand.
- High net margins (55.3%) point to pricing power or efficiency.
- Strong return on equity (90.8%) shows capital is put to work well.
- Our model's overall read is Strong (82/100).
The case against WDC:
- Limited free cash flow at today's price.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Western Digital is a mega-cap information technology business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 21.7x earnings, which our model scores Strong (82/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 30 Wall Street analysts covering WDC recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-3 pts of buy ratings).
Latest SEC Filings
WDC's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
WDC — frequently asked questions
Is WDC a good stock to buy?
We don't give buy or sell advice. Our model rates Western Digital Strong (82/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is WDC's rating on The Stocks School?
Western Digital currently scores 82/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does WDC's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Western Digital's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for WDC calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this WDC analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell WDC. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.