WDC · Intrinsic value
Is Western Digital Corporation (WDC) overvalued or undervalued?
As of Oct 21, 2026, TickerWorth publishes a fair-value range of $208.83 – $208.83 for Western Digital Corporation (WDC), against the delayed market price of $364.32: priced above our range. It is a range, not a single number, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 21, 2026 · How these pages are made
What is WDC worth?
- Fair-value range
- $208.83 – $208.83
- A range by design: peer multiples — our researched DCF held out as mid-cycle.
- Market price
- $364.32
- Gap to fair value
- —
- Verdict
- Priced above our range
Reverse DCF, on our cash-flow model rather than the range above: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is WDC's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Technology companies in US
Its strongest point: a profitable, high-quality business. Its weakest: trades above our estimate of what it's worth.
- Value · 43 of 100
Cheaper than 43% of Technology companies in US
- Price vs worth · 16 of 100
- Quality · 84 of 100
More profitable than 84% of Technology companies in US
- Financial health · 59 of 100
Financially stronger than 59% of Technology companies in US
- Growth · 64 of 100
Growing faster than 64% of Technology companies in US
- Momentum · 60 of 100
Outperformed 60% of Technology companies in US over the past year
Confidence: Medium confidence · Scored
Get the Undervalued Company of the Week.
Why WDC gets a range, not one number
At a recent price of $364.32, Western Digital Corporation (WDC) sits above every lens we ran: our valuation lenses put the business somewhere between $208.83 and $208.83 per share. For a cyclical we value through the cycle we publish a range only (peer multiples — our researched DCF held out as mid-cycle): where in the cycle the business sits decides where in that range it lands, and a single figure would claim we know that precisely. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts Western Digital Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 12.0%, with a long-run terminal growth rate of 2.5%. About 63% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — WDC would need sustained revenue growth of more than 25%/yr to justify today's price, against about 5.8% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, WDC's modeled DCF value ranges from about $66.17 to $104.84 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Western Digital Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of WDC's intrinsic value. Figures update as new filings and prices come in.
Every input behind WDC's DCF
| Input | Value |
|---|---|
| Base-year revenueWestern Digital FY2026 10-K (SEC EDGAR companyfacts): Rev $12,919M, op income $4,453M (34.5%). Period 2025-06-28..2026-07-03. | $12,919,000,000 |
| Base EBIT marginWestern Digital FY2026 10-K (SEC EDGAR companyfacts): op income 4,453 / revenue 12,919 = 34.5% | 34.5% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 12% → 5% → 4% → 4% → 4% |
| Risk-free rateUS 10Y govt bond: US 10Y CMT | 4.6% |
| BetaESTIMATEAssumption — normalized estimate: Published beta ~2.17 (melt-up-inflated); normalized to 1.50 through-cycle. GENEROUS. | 1.50 |
| Terminal growthESTIMATEAssumption — house default: long-run nominal growth in USD; must be < WACC | 2.5% |
| Diluted sharesWestern Digital FY2026 10-K (SEC EDGAR companyfacts): weighted-average diluted shares, FY2026: 383M | 383M |
| Market priceDelayed quote · as of 2026-10-21 00:02 UTC | $364.32 |
Change WDC's assumptions
The discount-rate dial and the editable model
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What does Western Digital Corporation do?
What does it do?
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 operates in the Computer Hardware industry (Technology sector), headquartered in United States. The company employs roughly 40,000 people.
How does it make money?
The business turns $12.9B in annual revenue into profit. Out of every $100 of sales, about $44 is left as operating profit (operating margin of 43.6%), after a 49% gross margin on the products/services it sells. After all costs, taxes and interest, 72.9% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: carries modest debt (0.1× equity), can just cover its short-term bills (1.3× current ratio), and is currently profitable.
Who at WDC filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Tan Irving | Director, Chief Executive Officer | Option exercise | — | Form 4 for Tan Irving (opens sec.gov in a new tab) | |
| Tan Irving | Director, Chief Executive Officer | Shares withheld (tax) | $481,539.21 | Form 4 for Tan Irving (opens sec.gov in a new tab) | |
| Davis Brian Scott | Chief Sales & Mrktng Officer | Option exercise | — | Form 4 for Davis Brian Scott (opens sec.gov in a new tab) | |
| Davis Brian Scott | Chief Sales & Mrktng Officer | Shares withheld (tax) | $425,044.69 | Form 4 for Davis Brian Scott (opens sec.gov in a new tab) | |
| Shihab Ahmed Mohammed | Chief Product Officer | Option exercise | — | Form 4 for Shihab Ahmed Mohammed (opens sec.gov in a new tab) | |
| Shihab Ahmed Mohammed | Chief Product Officer | Shares withheld (tax) | $2,182,930.50 | Form 4 for Shihab Ahmed Mohammed (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is WDC's intrinsic value?
TickerWorth's valuation lenses put Western Digital Corporation (WDC) between $208.83 and $208.83 per share, versus a market price of $364.32. For a cyclical we value through the cycle we publish a range only (peer multiples — our researched DCF held out as mid-cycle): where in the cycle the business sits decides where in that range it lands, and a single figure would claim we know that precisely.
Is WDC overvalued or undervalued?
At $364.32 the price sits above every lens we ran. We don't call WDC overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for WDC?
A WACC of 12.0% and a terminal growth rate of 2.5%.
Is Western Digital stock undervalued?
TickerWorth's fair-value range for Western Digital Corporation (WDC) is $208.83 – $208.83 against a market price of $364.32. Priced above our range. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Western Digital (WDC) DCF valuation and fair value
Our fair-value range for Western Digital Corporation (WDC) is $208.83 – $208.83, built on a 12.0% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Western Digital stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $364.32. A model estimate, not investment advice.
Western Digital (WDC) insider trading
The most recent insider filing (SEC Form 4) for Western Digital Corporation (WDC): Tan Irving, Director, Chief Executive Officer, option exercise on 2026-09-20. The latest filings are listed on this page. A disclosure, not a signal to trade.
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Not investment advice. TickerWorth Score is a model output.
TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.
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WDC goes on your watchlist, where its valuation is re-run as new filings land — so you read the current number, not the one from today.