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WDC

S&P 500
Strong · 77/100

Western Digital

Information Technology
Technology Hardware, Storage & Peripherals

$732.62

1.8%

Updated Today 6:01 PM ET

Price — Past Year

▲ Up 1160.7% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$234.76B

P/E

37.91x

Forward P/E (est.)

27.08x

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

77/100

Technical Analysis (Educational)
Research

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 $732.62, above its 50-day average ($479.98) and 200-day average ($266.11). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

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 74 it is overbought — the recent rally is stretched and can cool off.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. WDC's is $51.93 (~7.1% 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 $458.87 (support) and sellers near $799.87 (resistance); its 52-week range is $58.53–$799.87. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 2.1× the 20-day average — heavier than usual, which adds conviction to the move. 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.

Business Overview
Research

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 (77/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

-13.4%

Revenue moved from $16.92B in 2021 to $9.52B in 2025, a -13.4% 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.

Profitability
Research

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.

Debt Analysis
Research

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.

Cash Flow Analysis
Research

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.

Valuation Analysis
Research

P/E

37.91x

P/S

23.66x

P/B

4.37x

EV / EBITDA

65.58x

WDC trades at 37.9x trailing earnings (about 27.1x on estimated forward earnings), 23.7x sales, and 4.4x book value. Reverse-engineering today's price implies the market expects roughly 8.4% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
37.9xExpensive
Forward P/E
27.1xExpensive
P/S ratio
23.7xExpensive
Revenue growth
32.0%Strong
EPS growth
269.2%Strong
Gross margin
38.8%Weak
Net margin
55.3%Strong
ROE
90.8%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How WDC stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (72 S&P 500 companies), WDC ranks #12 of 72 by our overall rating. It trades at roughly in line versus the sector on earnings (37.9x P/E vs. 35.6x median) with a higher return on equity (90.8% vs. 25.6%) and faster revenue growth (32.0% vs. 17.4%).

P/E vs sector

37.9x

median 35.6x

ROE vs sector

90.8%

median 25.6%

Growth vs sector

32.0%

median 17.4%

Sector rank

#12

of 72 by rating

CompanyP/ERev Gr.Rating
WDCThis stock37.9x32.0%Strong· 77
STX99.7x28.9%Neutral· 57
DELL32x38.6%Favorable· 58
SNDK76x82.8%Strong· 78
HPE40.3x22.6%Neutral· 46
NTAP24x5.4%Neutral· 57
HPQ8.4x5.7%Neutral· 53
SMCI15.9x56.2%Favorable· 64
Information Technology median35.6x17.4%61/100

Valuation vs. quality map

sector medianSTXDELLSNDKHPENTAPHPQSMCIWDCP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$509.15$841.20

vs. $732.62 today · expected CAGR -7%3%

Metric20262027202820292030
Revenue$12.57B$16.59B$21.90B$28.90B$38.15B
Net income$2.51B$3.32B$4.38B$5.78B$7.63B
EPS$7.29$9.62$12.70$16.77$22.14
Share price (low)$167.71$221.37$292.21$385.72$509.15
Share price (high)$277.08$365.75$482.78$637.28$841.20
CAGR (low–high)-77% / -62%-45% / -29%-26% / -13%-15% / -3%-7% / 3%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

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 (77/100).
Bear Case

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.
Key Risks
Research

Valuation risk — at 37.9x earnings, disappointing results could compress the multiple.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

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 37.9x earnings, which our model scores Strong (77/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

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.