Discounted Cash Flow

Workday, Inc.

WDAY · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2017 $1.6b $-408.3m $346.6m -26.0% $-2.06
2018 $2.1b (36.6%) $-321.2m (21.3%) $460.3m (32.8%) -15.0% (42.4%) $-1.55 (24.8%)
2019 $2.8b (31.7%) $-418.3m (-30.2%) $598.5m (30.0%) -14.8% (1.1%)
2020 $3.6b (28.5%) $-480.7m (-14.9%) $818.6m (36.8%) -13.3% (10.6%)
2021 $4.3b (19.0%) $-282.4m (41.2%) $1.2b (48.3%) -6.5% (50.6%)
2022 $5.1b (19.0%) $29.4m (110.4%) $1.6b (32.1%) 0.6% (108.7%) $0.12
2023 $6.2b (21.0%) $-366.7m (-1348.6%) $1.3b (-19.4%) -5.9% (-1132.2%) $-1.44 (-1300.0%)
2024 $7.3b (16.8%) $1.4b (476.6%) $1.9b (48.3%) 19.0% (422.4%) $5.28 (466.7%)
2025 $8.4b (16.4%) $526.0m (-61.9%) $2.2b (14.3%) 6.2% (-67.3%) $1.98 (-62.5%)
2026 $9.6b (13.1%) $693.0m (31.7%) $2.8b (26.7%) 7.3% (16.5%) $2.61 (31.8%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model