WDAY
Workday, Inc.
Recurring SaaS
★ Quality 24/100Price today
$137.11
what the market pays
Worth
$150.44
calculated cycle value
Price is 9% below its value
charlieapp.co
Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
Where does the value come from?
Software and subscriptions
$155.98
per share
How it's calculated
Workday, Inc. — assistant override (2026-06-06). Review note.
Net cash in the bank
cash minus financial debt, per share
Total calculated value
business + cash
How many times the cash flow
Recurring SaaS · vs 26 peers
You pay 13.8x times this business's cash flow; its sector median is 21.9x.
9% below what Charlie thinks it's worth (15.1x) — that gap is your safety margin.
Why Discounted?
Its free cash flow is $10.36/share × 15.1x multiplier minus $5.54 in negative net cash = $150.44 in intrinsic value. Today's price of $137.11 is 10% below value — a moderate discount, a good spot to enter gradually.
The price is 9% off the calculated value. Close, but without the ideal discount.
It's fine to buy in pieces. Monthly DCA works well here.
For a bigger safety margin, wait for $120.35 or less.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$120.35
-20% off Value
🟡 Discounted
≤$142.92
-5% off Value
🟡 Today
$137.11
+10% Valor
Discounted
The price is close to value. There's no big discount, but it's reasonable to invest in pieces.
“The market is a device for transferring money from the impatient to the patient.”
— Warren Buffett
Model updated · July 2026
The business
The nervous system of HR and finance that nobody wants to replace.
Workday sells cloud software for human capital management (HCM) and finance, aimed at large enterprises. It charges a recurring annual subscription based on headcount. It closed FY2026 with $9.6B in revenue and $2.8B in free cash flow.
Migrating the payroll and finance system of a 50,000-employee corporation is expensive, slow, and risky. That creates high switching costs and strong retention. But it competes against SAP and Oracle, which have more muscle and deeper pockets.
Revenue history
From $5.1B to $9.6B in 4 years — nearly 1.9x its size. Selling more and more is the base of everything else.
Where each $100 of sales goes
Revenue $9.6B · FY2026
Of every $100 in sales, $93 goes to costs and operations; $7 is left as net profit (7% margin).
Catalysts and risks
AI expansion across the platform with separately charged modules since 2025.
International growth, today less than 25% of revenue.
FCF margin near 30% that keeps climbing with scale.
Slowing growth: from the historical 20%+ toward 15%.
Oracle and SAP going after the same customer with integrated bundles.
Net income of only $0.7B on $9.6B — it relies on stock-based compensation to look good.
Charlie's note
“Sticky business with customers who don't move easily. The problem is the price: you pay a lot for growth that isn't what it used to be. Good business, demanding valuation.”
Analysis · June 2026
So when would be a good price for Workday, Inc.?
Today it trades below what we calculate. If you want us to tell you when that changes —or when the value itself moves because the company reported— we will email you.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.