Western Digital (WDC) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Western Digital

NasdaqGS•Technology•Computer Hardware

$423.87+6.90(0.02%)Pre-market

Market Cap

$154.11B

P/E

16.4x

P/S

11.9x

P/B

17.4x

Western Digital Corporation engages in the development, manufacture, and sale of data storage devices and solutions based on hard disk drive (HDD) technology in the United States, Asia, Europe, the Middle East, and Africa. The company offers internal HDDs, data center drives, data center platforms, external drives, portable drives, NAS for home and office, and accessories. It sells its data storage devices and solutions through its computer sales personnel, dealers, distributors, retailers, and subsidiaries. The company has a collaboration with Open Quantum Design for the development of quantum error correction technology and related systems to advance reliable quantum computing. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.

How this company scores

ExcellentMetricSide Score: 90/100

Strongest: Profitability (25/25); weakest: Cash & Earnings Quality (20/25).

Profitability25/25

Growth20/25

Balance Sheet & Red Flags25/25

Cash & Earnings Quality20/25

Strengths

Growing revenueRising free cash flowStrong marginsHigh ROE

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 16.4x5y range 6.5x – 48.2x

Currently above its 13-quarter median.

P/S · 11.9x5y range 0.4x – 12.6x

Currently above its 20-quarter median.

P/B · 17.4x5y range 0.6x – 17.4x

Currently above its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.6x) — earnings may be inflated by non-cash items or aggressive accounting.

Revenue Decline

Red Flag

TTM revenue has contracted 32.9% — significant decline indicating deteriorating demand.

Share Dilution

Watch

Shares outstanding rose 2.3% — mild dilution. Compare to earnings growth to assess the net per-share impact.

Price & Volume

Market Cap $154.11B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $12.92B
Q. Revenue: $3.75B
TTM EBITDA: $4.83B
TTM Op. Income: $4.45B
Q. Op. Income: $1.56B
TTM Net Income: $9.42B
Q. Net Income: $3.19B
EPS: $9
Shares Out.: $352.00M

$12.92B in TTM revenue grew 35.7% YoY, reaching $3.75B last quarter. TTM EBITDA of $4.83B and TTM operating income of $4.45B show growth is flowing through to the bottom line. TTM net income of $9.42B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 54.1%
EBITDA Margin: 44.4%
Op. Margin: 41.7%
Net Margin: 85.3%

Op. margin of 41.7% is up 40.0% YoY — cost efficiency is improving. Net margin at 85.3% and gross margin of 54.1% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 4 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 16.4x
P/S Ratio: 11.9x
P/B Ratio: 17.4x

At 16.4x P/E, the stock trades within typical market levels. P/S of 11.9x and P/B of 17.4x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 39% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $13.86B
Cash: $1.58B
Long-Term Debt: $1.05B
Book Value: $8.86B
D/E Ratio: 0.1
Debt/EBITDA: 0.6

With $13.86B in assets and $1.05B in long-term debt, D/E is 0.1and book value is $8.86B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 5 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $1.39B
TTM Free Cash Flow: $3.51B
FCF Margin: 27.2%
FCF / Net Income: 0.4

TTM FCF of $3.51B on $1.39B in operating cash flow. The FCF / Net Income ratio of 0.4x means cash covers only part of net income — earnings quality needs attention. Across the last 8 quarters, free cash flow has risen for 7 consecutive quarters — an improving trend.