Find your next quality investment with Simply Wall St’s simple and powerful screener, trusted by over 7 million retail investors worldwide.
Recent weakness in Workday (WDAY) has been linked to broader risk-off moves in growth software stocks after President Trump ended the Iran ceasefire, with higher oil prices and bond yields weighing on valuations.
Check out our latest analysis for Workday.
Beyond the recent sell-off, Workday’s share price has been volatile, with a 90-day share price return of 21.95% offset by a 33% year-to-date decline in the share price and a one-year total shareholder return decline of 42.59%. This suggests that recent momentum has rebounded from a much weaker longer-term base, while index conversions and insider transactions remain in focus on sentiment.
As you weigh Workday compared to other software and automation options, this could be a good time to see what else is moving among 30 robotics and automation stocks
Given Workday’s sharp decline, mixed index moves, and recent recovery, the key question now is simple: does the current price still offer enough upside to justify the risks you take from here?
Table of Contents
Most popular narrative: 19.4% underrated
The most widely followed Workday report estimates a fair value of $171.14 per share, compared to a previous closing price of $137.88. This suggests that recent weakness points to a separation rather than a fundamental break.
Workday is well-positioned to capitalize on increasing demand for cloud-native and AI-powered enterprise solutions as enterprises continue to replace aging on-premise systems and prioritize digital transformation, resulting in sustained subscription revenue growth and growing backlog.
Workday is well-positioned to capitalize on increasing demand for cloud-native and AI-powered enterprise solutions as enterprises continue to replace aging on-premise systems and prioritize digital transformation, resulting in sustained subscription revenue growth and growing backlog.
Read the full story.
Want to understand why this narrative sees scope above today’s price? The focus is on growing revenues, more stable margins and a future earnings multiple usually reserved for industry leaders.
Result: Fair Value of $171.14 (UNDERVALUED)
Read the entire narrative and understand what lies behind the predictions.
However, the Workday narrative may be challenged if AI-driven products do not gain traction as expected or if increasing compliance and data protection requirements squeeze margins.
Learn about the key risks in this Workday narrative.
Another View: What Workday’s P/E Ratio Tells You
The SWS DCF model suggests that Workday is undervalued, but the earnings multiple tells a different story. Workday trades at a P/E of 40.2x compared to a fair ratio of 37.3x, the US software industry is at 28.9x and its peers are at 25.4x. This gap suggests that investors are paying a clear premium. How committed are you really to the long-term narrative from here?
See what the numbers say at this price – find out in our valuation breakdown.
Price-earnings ratio NasdaqGS:WDAY as of July 2026
Next Steps
After weighing the mixed signals surrounding Workday, it’s time to act quickly, examine the underlying data for yourself, and decide how much optimism you share about the potential benefits, starting with the top three benefits
Looking for more investment ideas beyond Workday?
If Workday has sharpened your thinking about risk and reward, don’t stop there. Use powerful screeners to uncover other opportunities that match your style.
This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any stocks mentioned.
Companies covered in this article include: WDAY.
Do you have feedback on this article? Worried about the content? Get in touch directly with us. Alternatively by email editor-team@simplywallst.com
https://finance.yahoo.com/markets/stocks/articles/workday-wday-could-19-undervalued-081441635.html
