▲ SIGMATERMINAL Open Terminal →

Analyses / WDAY

WDAY Workday Inc As of Jul 9, 2026
$137.88

Workday hits 7-month low on sector headwinds; one analyst sees 19% upside if risk-off abates.

Setup: Defensive Growth Under Duress Confidence: 62 Horizon: 3–6 months Risk: medium-high Category: Large-cap SaaS / Enterprise Software
🔒 Trade Plan — entry · target · stop
Entry Zone
$•••–•••
Target
$•••
Stop Loss
$•••
Risk / Reward
•.• : 1
Unlock the exact levels — free →

A free account reveals WDAY's entry zone, price target & stop loss. Full 1-week to 1-year price forecasts are included with Pro.

The Thesis

▲ Bull Case

Revenue growth 15.4% YoY, 75.7% gross margins, FCF yield 12.8x attractive vs. mega-cap SaaS peers. Trading 55% below 52-week high suggests capitulation; analyst note flags 19% undervaluation. Asia-Pacific expansion + AI narrative potential. If sector sentiment stabilizes, reversion to historical multiples plausible.

▼ Bear Case

Forward P/E 51.5x remains stretched despite selloff. EV/EBITDA 38.7x signals limited FCF conversion. Net margin 7.26% weak vs. gross—opex drag signals pricing/mix headwinds. Insider selling 5.6x buying (309 sells vs. 55 buys). Risk-off environment punishes high-multiple growth; beta 1.07 offers no hedge.

Valuation

overvalued at current multiples, but fallen into fair-value range on capitulation — score 58/100

P/E 42.1x and forward 51.5x remain elevated vs. S&P 500 (20–22x), even post-correction. However, FCF yield 12.8x competitive; P/S 3.73x in-line with mega-cap SaaS (3–4x). Analyst note suggests 19% undervaluation, implying fair-value target ~164–169. Margin expansion or revenue acceleration required to justify forward multiple.

Technical Levels

Support · $128.00 (Psychological + 1-month low cluster; stop-loss zone) · $135.00 (Today's low; short-term pivot) · $142.00 (Today's open; session mid-point)

Resistance · $147.00 (20-day moving average approx; early reversion target) · $160.00 (Analyst fair-value zone; major resistance) · $180.00 (50-day moving average approx; secondary target)

RSI: Unavailable

Financial Health

Score 75/100. Strong liquidity ratios (1.32 current, 1.27 quick) signal zero near-term solvency risk. SaaS business model (high margins, recurring revenue) inherently cash-generative. Detailed leverage metrics unavailable, but company scale and public-market access suggest stable financing access. No red flags on balance-sheet integrity.

Catalysts

Q2 earnings report (expected late May / early June)~2–4 weekshigh
Margin guidance / opex commentaryNext earnings callhigh
Asia-Pacific expansion progress (Lombard appointment)Ongoing; visibility in Q3+ resultsmedium
Sector macro stabilization (Fed pivot, tech sector rotation in)2–6 monthshigh
Insider buying inflection (if buybacks or management accumulation resumes)Unknownmedium

Risk Flags

Insider selling outpaces buying 5.6:1; concentration of exit activity suggests caution.
Forward P/E 51.5x remains elevated; recovery depends on either margin expansion or multiple compression halt.
Sector under broad pressure (Paycom, Flywire also falling); macro risk-off could extend drawdown.
RSI, earnings date, and detailed cash-flow data unavailable; technical confirmation and next report catalysts unknown.

See WDAY's full trade plan — free

Create a free account to unlock the exact entry, target, and stop — plus run live analysis on any of 5,000+ tickers. No card required.

Unlock WDAY free →

Recent News

More Analyses

WDAY FAQ

Is WDAY a buy right now?

Workday Inc's current read is a Defensive Growth Under Duress setup with 62 confidence over a 3–6 months horizon. Valuation: overvalued at current multiples, but fallen into fair-value range on capitulation. See the full bull and bear case above, or run a live analysis for the exact entry, target and stop.

Is WDAY overvalued?

overvalued at current multiples, but fallen into fair-value range on capitulation (valuation score 58/100). P/E 42.1x and forward 51.5x remain elevated vs. S&P 500 (20–22x), even post-correction. However, FCF yield 12.8x competitive; P/S 3.73x in-line with mega-cap SaaS (3–4x). Analyst note suggests 19% undervaluation, implying fair-value target ~164–169. Margin expansion or revenue acceleration required to justify forward multiple.

What are the risks of buying WDAY?

Forward P/E 51.5x remains stretched despite selloff. EV/EBITDA 38.7x signals limited FCF conversion. Net margin 7.26% weak vs. gross—opex drag signals pricing/mix headwinds. Insider selling 5.6x buying (309 sells vs. 55 buys). Risk-off environment punishes high-multiple growth; beta 1.07 offers no hedge.