WDC Western Digital Corporation
Loading price history…
Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Computer Hardware · San Jose, CA · 40,000 employees · westerndigital.com
Western Digital creates and produces storage hardware centered on hard disk drive technology. The company generates revenue by offering internal and external drives, storage platforms for data centers, and network-attached solutions. Its products are sold internationally through commercial sales teams, independent distributors, retail partners, and dealerships.
Bull case
The company converts a substantial share of its revenue into free cash flow after stock-based compensation and generates returns on capital well above its cost of capital. It also benefits as a supplier of storage products consumed by artificial intelligence infrastructure workloads.
- The price assumes about +19% a year cash-flow growth; it delivered +66% a year over three years.
- Turns 26% of revenue into free cash after stock pay.
- Returns on capital run well above its cost of capital.
- Annual revenue growth rose from -27% to +36%.
Bear case
The measurements do not currently make a case against the business.
- Trades at the 85th percentile of its own valuation history.
- The share price trend is still falling.
- Its sector cycle (AI Infrastructure CapEx) is in saturation.
Features
- V-OVERVALUED Overvalued The price is 706% above its own-history reference value.
- V-WIDE-MOAT Wide moat Returns on capital run well above its cost of capital.
- V-ACCELERATING Growth accelerating Annual revenue growth rose from -27% to +36%. Shared by most companies we track
- H-FORTRESS Fortress balance sheet It holds more cash than debt and is profitable.
- F-UPSIDE Analyst upside Analysts' average target is 69% above the price.
AI impact
Supplies what AI runs on Tailwind
Western Digital sells data storage devices that benefit from rising storage demand fueled by artificial intelligence workloads and infrastructure. However, the company faces risks if environmental or power constraints slow the expansion of data centers, weakening customer demand for its storage products.
Where AI helps it
- Sells what AI workloads consume
- Uses AI to lower its own costs (minor)
Where AI could hurt it
- Depends on the AI build-out continuing (minor)
In the company's words
HDDs are critical components in the worldwide data infrastructure market, powering the AI-driven digital economy.
Demand for and prices of our products are influenced by, among other factors, the actual and projected growth of data to be stored, the spending plans of our large hyperscale customers, the balance between supply and demand in the storage market, macroeconomic factors (such as tariffs and actual or…
Assessed by AI from the company's own annual report filed 14 Aug 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
WDC is at the 85th percentile of its own valuation history. Depending on how far back you look, it ranges from the 76th to the 85th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Above reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
What the price assumes
The measured price implies roughly +18.5% annual cash-flow growth, between +11.2% and +24.0% under other reasonable assumptions. Over the last three years it delivered +66.2% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not triggered — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.