WDC Analysis — TradeApes

WESTERN DIGITAL CORP (WDC)

Technology Computer Hardware

$487.42 close · Jul 21, 2026

Specialized 66 Health · Healthy

Above 200 SMA

52W -26.3% from High

Methodology Breakdown

This stock uses a non-standard methodology. The breakdown below shows what the engine computed.

Method	Value	Role
Peer Multiples	$112.07	REFERENCE
Earnings Power Value	$9.33	REFERENCE
Book Value Anchor	$82.69	REFERENCE
Earnings Anchor	$60.13	REFERENCE
Cash Floor	$3.71	REFERENCE
NAV Anchor	$82.69	REFERENCE

⚠️

Overvalued +196.5%

Market cap (215.00B) is 196.5% above the bull-case DCF fair value (72.50B)

Jul 14

Health Score

Out of 100

Healthy

Pillar Scores

Financial Strength 75

Operating Trend 60

Valuation 60

Capital Allocation 60

Risk Management 80

Positives

↑ Historically cheap — EV/EBITDA in bottom 25% of its 5-year range +5.0

↑ Net cash position — more cash on hand than total debt +3.8

↑ Free cash flow positive — business generates real spendable cash +2.5

Concerns

↓ High P/E — 25–45×, growth premium already priced in -2.5

↓ Piotroski F-Score 0–3 — multiple financial weakness signals -1.3

Signal contribution: +16.6 from strengths -3.8 from concerns

Health Score Trend 7 snapshots

Cross-Check: Greenblatt Magic Formula

✓ Aligned

Earnings Yield

1.3%

Rank 1109 / 1256

Return on Capital

70.8%

Rank 398 / 1256

Combined Rank

32th pctl

1256 companies ranked

Based on Joel Greenblatt's Magic Formula methodology. Not investment advice.

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	8.96B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	4.12B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	2.10B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	5.33B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	2.91B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	2.46B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	1.58B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	2.05B

Valuation

Market Cap	188.63B
Enterprise Value	188.31B
EV / Revenue	21.0x
EV / EBITDA	76.5x
P/E (TTM)	35.4x
Forward P/E (extrapolated)	32.3x
PEG	0.2x
P/FCF	64.9x
FCF Yield	1.5%

EV/EBITDA vs history — 11% percentile (historically cheap)

CheapMidExpensive

EV/Sales vs history — 28% percentile (historically cheap)

CheapMidExpensive

P/Book vs history — 28% percentile (historically cheap)

CheapMidExpensive

DCF Fair Value Range (base CAGR: 2.9%)

Bear

$132.18

Base

$140.92

Bull

$153.11

Bear $132 Current $487.42 (above range) Bull $153

Market is pricing in 25.4% FCF growth annually — base model assumes 2.9%

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	46.0%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	27.5%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	59.5%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	32.4%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	0.4%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	223.8%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	6 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	3.22

Community Sentiment

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Quarterly Financials

Metric	Q3 '26	Q2 '26	Q1 '26	Q '25	Q '25	Q2 '26	Q1 '26	Q '25	Q3 '24	Q2 '24	Q1 '24	Q4 '24
Revenue ?Total quarterly sales from primary business operations.	3.34B	3.02B	—	2.61B	2.29B	2.41B	2.21B	2.00B	1.75B	1.37B	1.19B	-3.39B
Gross Profit ?Quarterly revenue minus cost of goods sold.	1.68B	1.38B	—	1.07B	912.0M	907.0M	806.0M	697.0M	519.0M	313.0M	244.0M	-404.0M
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	1.19B	908.0M	—	—	760.0M	560.0M	334.0M	—	94.0M	-210.0M	-596.0M	87.0M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	3.21B	1.84B	—	282.0M	520.0M	594.0M	493.0M	39.0M	135.0M	-287.0M	-685.0M	-709.0M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	978.0M	653.0M	599.0M	675.0M	379.0M	287.0M	-62.0M	250.0M	-39.0M	-242.0M	-750.0M	-187.0M

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.