WDAY Value Scorecard - Workday, Inc.

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

36/60

moderate value score

Earnings & returns

EPS Trend

4/5

Diluted EPS: -$1.44 (2023), $5.21 (2024), $1.95 (2025), $2.59 (2026). It rose every year but one and ended above 2023; the framework scores that as 4.

ROE Trend

2/5

ROE (net income / common equity): -6.6% (2023), 17.1% (2024), 5.8% (2025), 8.9% (2026). Median 7.4%, lowest -6.6%; the framework scores a median 5-10% as 2.

ROIC

2/5

ROIC of 6.2%: operating income of $721.00M divided by $11.70B of capital (total assets $18.07B minus current liabilities $6.38B), fiscal year to Jan 31, 2026, as filed in the 10-K (SEC EDGAR). The framework scores 5-10% as 2.

Profit Margins

4/5

Net margin of 12.3%; the framework scores 10-20% as 4; gross margin 75.8%, operating margin 11.8%.

Balance sheet & cash

Debt-to-Equity

4/5

Debt-to-equity of 0.58; the framework scores 0.3-0.8 as 4 (total debt $3.77B, total cash $3.40B).

Free Cash Flow

5/5

Free cash flow (operating cash flow minus capital expenditure): $1.29B (2023), $1.91B (2024), $2.19B (2025), $2.78B (2026). It rose every year; the framework scores that as 5.

Retained Earnings

1/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): -$3.11B (2023), -$1.73B (2024), -$1.21B (2025), -$512.00M (2026). The latest balance is negative (an accumulated deficit); the framework scores that as 1.

Valuation models

Graham IV

1/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $4.91 x (8.5 + 2 x 0.0) x (4.4 / 4.5) = $40.81 (EPS CAGR -29.5% floored at 0%; the formula returns a negative value below -4.25% growth). Current price $190.81; price is 367.6% above the model value.

DCF Value

5/5

FCF/share = $15.543, stage 1 growth = 14.7% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $88.26, PV of terminal value = $281.92, DCF value = $370.18. Current price $190.81; price is 48.5% below the model value.

Margin of Safety

3/5

Graham value $40.81 (price is 367.6% above the model value); DCF value $370.18 (price is 48.5% below the model value).

Price-to-Book

1/5

P/B of 7.12; the framework scores above 5.0 as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 0 of 10 years (2017-2026); lowest -17.8%, highest 6.2%.

Gross margin, each year

Not reported: the filings don’t state a gross profit or cost of revenue figure, as is common for oil and gas companies, banks and insurers.

Competition, in the company’s own words · 10-K filed Mar 6, 2026

The overall market for enterprise application software, including AI-powered solutions, is rapidly evolving, highly competitive, and subject to changing technology, shifting customer needs, and frequent introductions of new products. We currently compete with large, well-established, enterprise software vendors, such as Oracle Corporation (“ Oracle ”) and SAP SE (“SAP”). We also face competition from other

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

4/5

Capital allocation, 2023-2026: dividends or buybacks paid in every year (pass); $4.09B paid out against $8.16B of free cash flow (pass); total debt $3.25B to $3.82B, up 17.6%, 2.6x EBITDA (fail: up more than 10% and above 2x EBITDA); shares outstanding 0.26B to 0.26B, down 1.8% (pass). 3 of 4 tests passed; the framework scores that as 4.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $4.91, g = 0.0%, Y = 4.5
    g floored at 0.0% (3-year EPS CAGR was -29.5%; below -4.25% the formula returns a negative value)
    IV = $40.81
    Current price $190.81 vs Graham value $40.81 — price is 367.6% above the model value.

  DCF:
    FCF/share = $15.543
    Stage 1 growth = 14.7% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $17.828 → PV $16.207
      Y2: $20.448 → PV $16.899
      Y3: $23.454 → PV $17.621
      Y4: $26.902 → PV $18.374
      Y5: $30.856 → PV $19.159
    Stage 1 PV sum = $88.26
    Terminal value at end of Y5 = $454.03
    PV of terminal value = $281.92
    DCF value = $370.18
    Current price $190.81 vs DCF value $370.18 — price is 48.5% below the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $190.81. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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WDAY · Workday, Inc.

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