WESTERN DIGITAL CORP

WDC

Western Digital Corporation develops, manufactures, and sells 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.

About the company

Country: United StatesPrice: $453.48Market Cap: $163.5B

Investment snapshot

25%positive consensus

Scored 37d ago

Positive

BUY / PASS

Neutral / negative

0 / 11

NEUTRAL / FAIL

Median fair value

$42.00

-90.7% vs price

Models with upside

0 / 16

Positive margin of safety

Key risk

No clean pass — all 12 investors flag at least one valuation criterion

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Scored from 10-K37d ago

Metric	O'Shaughnessy Systematic Factor Composite	Lynch GARP	Buffett Quality Compounder	Pabrai Dhandho Framework	Akre Three-Legged Stool	Schloss Asset-Value Discipline	Neff Low-P/E Total Return	Sleep Scale Economies Shared	Templeton Global Bargain Hunter	Marks Risk-Aware Value	Munger Quality Focus	Ackman Activist Value	Dreman Contrarian Value	Piotroski F-Score	Greenblatt Magic Formula	Graham Defensive Value
Verdict	FAIL	FAIL	FAIL	FAIL	PASS	FAIL	FAIL	PASS	FAIL	FAIL	PASS	PASS	FAIL	FAIL	FAIL · Rank #1257 (Top 39.2%)	FAIL
Score
Analysis
Intrinsic Value	N/A					N/A	N/A	N/A						N/A
Margin of Safety	N/A	-397.9%	-457.8%	-1124.3%	-534.5%	N/A	N/A	N/A	-2972.4%	-12189.4%	-808.2%	-868.4%	-1088.7%	N/A	-1300.9%	-979.7%
Data As Of	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-24)	10-K (2026-08-24)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)

Where It Passes

Where It Falls Short

Valuation0% pass✓ 1✗ 25▾
No clean pass — all 12 investors flag at least one valuation criterion
Revenue / market capitalization+0.0582; #4428/5203 (top 85.1%)
✗OshaughnessyTop 10% of eligible cross-section
Net income / market capitalization+1.16%; #2790/6251 (top 44.6%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization+0.78%; #2413/4487 (top 53.8%)
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date+67.65%; #564/6203 (top 9.1%)
✓OshaughnessyTop 10% of eligible cross-section
Basic earnings-growth PEG (dividends excluded)4.98
✗Lynch< 1.0 (ideally < 0.5)
P/E or FCF YieldP/E=88.6x, FCF Yield=0.8%
✗PabraiP/E < 15 or FCF Yield > 10%
Price / Book Value per Share29.62x
✗SchlossP/B <= 0.80x (app cutoff)✗Templeton< 1.5x✗Dreman< 1.2x
Price / Tangible Book Value per Share29.62x
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change
✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Price / Diluted EPS88.6x
✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E0.20
✗Neff> 0.7 (Neff's published traditional edge)
Price / EPS88.6x
✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✗Dreman< 12x
Price vs. Trailing Low1122% of trailing low ($40.43)
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
P/B or P/E vs. Historical AverageP/E=88.6x, P/B=29.6x
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value-1088.7% (IV=$38.15 vs Price=$453.48)
✗Marks>= 20% below intrinsic value
Valuation ReasonablenessP/E=88.6x, OE Yield=1.2%
✗MungerP/E < 25 or Owner Earnings Yield > 5%
Price / FCF per Share123.0x
✗Ackman<= 25
Price / (CFO / Shares)93.0x
✗Dreman< 8x
EBIT / Enterprise Value1.4%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=1.4%, ROC=45.6%
✗GreenblattBoth EY > 10% and ROC > 25%
Price / 3-yr avg EPS178.3x
✗Graham<= 15x
Price-to-Book Ratio29.6x
✗Graham<= 1.5x
P/E x P/B5,281.6
✗Graham<= 22.5
Valuation models0% pass✗ 11▾
WDC overvalued: all 11 models price fair value below $453.48 (median $42.00)
Lynch fair value$91.07
✗Lynch-397.9% margin vs $453.48
Buffett fair value$81.30
✗Buffett-457.8% margin vs $453.48
Pabrai fair value$37.04
✗Pabrai-1124.3% margin vs $453.48
Akre fair value$71.47
✗Akre-534.5% margin vs $453.48
Templeton fair value$14.76
✗Templeton-2972.4% margin vs $453.48
Marks fair value$3.69
✗Marks-12189.4% margin vs $453.48
Munger fair value$49.93
✗Munger-808.2% margin vs $453.48
Ackman fair value$46.83
✗Ackman-868.4% margin vs $453.48
Dreman fair value$38.15
✗Dreman-1088.7% margin vs $453.48
Greenblatt fair value$32.37
✗Greenblatt-1300.9% margin vs $453.48
Graham fair value$42.00
✗Graham-979.7% margin vs $453.48
Debt & Leverage18% pass✓ 2✗ 12▾
9 of 11 flag WDC's debt & leverage — Lynch, Buffett, Akre +6 more
Total Debt / Equity1.31
✗Lynch< 0.33
Cash - Long-term Debt$-371.0M
✗LynchPositive preferred
Debt/Equity & Interest CoverageD/E: 1.31, IC: 6.4x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Debt Levels1.31
✗AkreDebt/Equity < 0.3✗MungerDebt/Equity < 0.5
Total Debt / Shareholders' Equity1.31x
✗SchlossD/E < 1.00x✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗Dreman< 0.8
Current Assets / Current Liabilities1.08x
✗SchlossCurrent ratio >= 1.50x (app cutoff)✗Dreman> 1.5
Interest Coverage & Debt/EBITDAIC=6.4x, D/EBITDA=2.5x
✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity1.31
✗Ackman<= 1.0
LT Debt / Total Assets Change17.75% -> 17.75%
✓PiotroskiDecreased YoY
LT Debt vs Net Current AssetsLT Debt $2.5B vs NCA $438.0M
✗GrahamLT Debt <= Net Current Assets
Efficiency25% pass✓ 3✗ 8▾
6 of 8 flag WDC's efficiency — Buffett, Akre, Sleep +3 more
ROIC (3-5 yr avg)8.6%
✗Buffett> 10%
ROIC - WACC-1.4%
✗BuffettPositive (WACC = 10%)
ROIC (high and growing)FY2023: ROIC=-1.7%; FY2024: ROIC=18.4%; FY2025: ROIC=15.1%
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC14.7% (RR=98% x ROIC=15.1%)
✓AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)2/5 years above 12% (latest 15.1%)
✗SleepROIC > 12% in a majority of years
Return on Invested Capital15.1%
✓Munger> 15%
Current Assets / Current Liabilities1.08
✗Dreman> 1.5
Current Ratio Change YoY1.08 -> 1.08
✗PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.68x -> 0.68x
✗PiotroskiImproved YoY
EBIT / (NWC + Net Fixed Assets)45.6%
✓Greenblatt> 25%
Current Ratio1.08
✗Graham>= 2.0
Verdicts25% pass✓ 4✗ 12▾
Split decision: 11 FAIL · 4 PASS
Overall verdict
✗OshaughnessyFAIL (Rank #726/953 (Top 76.2%))✗LynchFAIL (2/7)✗BuffettFAIL (1/9)✗PabraiFAIL (0/3)✓AkrePASS (3/6)✗SchlossFAIL (0/7)✗NeffFAIL (3/6)✓SleepPASS (3/6)✗TempletonFAIL (3/8)✗MarksFAIL (3/5)✓MungerPASS (2/4)✓AckmanPASS (5/9)✗DremanFAIL (3/11)✗PiotroskiFAIL (F-Score 3)✗GreenblattRank #1257✗GrahamFAIL (1/9)
Profitability33% pass✓ 13✗ 18▾
10 of 15 flag WDC's profitability — Oshaughnessy, Lynch, Buffett +7 more
Net income / market capitalization+1.16%; #2790/6251 (top 44.6%)
✗OshaughnessyTop 10% of eligible cross-section
Basic earnings-growth PEG (dividends excluded)4.98
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR17.8%
✓Lynch15-30% (Fast Grower); > 0% to pass
ROE35.6%
✓Lynch> 15%
Net Income Positive (10+ years)17/26 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)11.2%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)24.5% (latest)
✗BuffettStable or rising over 10 years
Free Cash Flow Proxy$1.9B
✓BuffettPositive and growing
Earnings Variance (10-yr CoV)
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Margin of SafetyP/E=88.6x, P/B=29.6x
✗PabraiP/B < 1.5 or P/E < 15
Return on Equity21.3% (3-yr avg)
✓AkreROE > 20% (3-year avg)
Positive Diluted-EPS Years6/10 years positive
✗Schloss>= 70% positive over 5-10 observed years (app rule)
3-5 Year Diluted EPS CAGR17.8% over 4 years
✓Neff7%-20% annualized
Revenue growth vs. gross and operating margin trendgross margin 28.1% -> 38.8%, operating margin -6.4% -> 24.5%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-Year EPS CAGR17.8% CAGR over 4 years
✓Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend-6.4% (2023) -> 24.5% (2025)
✓TempletonNon-negative operating-margin trend over 3 years
Discount to Intrinsic Value-1088.7% (IV=$38.15 vs Price=$453.48)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency17/22 years positive
✓MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue24.5%
✓Ackman>= 15%
Net Income / Shareholders Equity35.6%
✓Ackman>= 15%
Pre-Tax Income / Revenue11.9%
✓Dreman>= 8%
Net Income / Shareholders' Equity35.6%
✓Dreman> 12%
Net Income / Total Assets13.49%
✓PiotroskiROA > 0
ROA Change YoY13.49% -> 13.49% (delta: +0.00%)
✗PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=12.08%, ROA=13.49%
✗PiotroskiCFO/Assets > ROA
Gross Margin Change YoY38.8% -> 38.8%
✗PiotroskiImproved YoY
EBIT / Enterprise Value1.4%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=1.4%, ROC=45.6%
✗GreenblattBoth EY > 10% and ROC > 25%
Positive EPS (10 years)16/26 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Growth38% pass✓ 5✗ 8▾
5 of 8 flag WDC's growth — Lynch, Sleep, Ackman +2 more
Basic earnings-growth PEG (dividends excluded)4.98
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR17.8%
✓Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthInv: 0.0% vs Rev: 0.0%
✗LynchInventory growth < Revenue growth
3-5 Year Diluted EPS CAGR17.8% over 4 years
✓Neff7%-20% annualized
Revenue growth vs. gross and operating margin trendgross margin 28.1% -> 38.8%, operating margin -6.4% -> 24.5%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR-10.7%
✗SleepCAGR > 7%
5-Year EPS CAGR17.8% CAGR over 4 years
✓Templeton> 0% (5-year EPS CAGR)
Positive Net Income Frequency17/22 years positive
✓MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth1.0%
✗Ackman>= 5%
Positive EPS Growth Frequency3/5 years with positive EPS growth
✓AckmanPositive EPS growth in >= 3 of last 5 years
EPS Growth Direction
✗DremanPositive over recent years
EPS CAGR
✗Dreman> 5% annualized
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Cash Flow40% pass✓ 5✗ 7▾
6 of 10 flag WDC's cash flow — Oshaughnessy, Lynch, Pabrai +3 more
(Operating cash flow - capex) / market capitalization+0.78%; #2413/4487 (top 53.8%)
✗OshaughnessyTop 10% of eligible cross-section
FCF Positive and Growing$1.3B
✗LynchPositive and growing
Free Cash Flow Proxy$1.9B
✓BuffettPositive and growing
P/E or FCF YieldP/E=88.6x, FCF Yield=0.8%
✗PabraiP/E < 15 or FCF Yield > 10%
Operating Cash Flow - Capital Expenditures$1.3B
✓Neff> $0 (app proxy for a strong fundamental case)
Positive Operating Cash Flow frequency19/21 years positive
✓SleepPositive OCF in >= 70% of available years
FCF Positive17/19 years FCF positive
✓MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap0.8%
✗Ackman>= 4%
Price / FCF per Share123.0x
✗Ackman<= 25
Price / (CFO / Shares)93.0x
✗Dreman< 8x
Operating Cash Flow$1.7B
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=12.08%, ROA=13.49%
✗PiotroskiCFO/Assets > ROA

Business & financials

Company Profile

Industry: Computers

SIC Sector: Industrial Machinery & Computing

Size: Large Cap($163.5B)

Revenue: $9.5B+0.0% YoY

Net Income: $1.9B+0.0% YoY

Financial Snapshot

Operating Margin24.5%

Return on Equity35.6%

Debt / Equity1.31

Current Ratio1.08

EPS (Diluted)$5.12+0.0% 1y

Shares Retired0.0% / −1.1% 2y

Similar Companies

AAPLApple Inc.

$4.81T

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$420.8B

PANWPalo Alto Networks Inc

$317.7B

STXSeagate Technology Holdings plc

$209.0B

Shareholder Return

Fiscal 2025

Retired 0.0% of shares last year, 1.1% issued over two.

Buybacks: —
Dividends: $44.0M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY25

0.0% = 0.0% + 0.0%

Earnings Fewer shares More shares

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

Metric	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021
Market Cap	$163.5B	$12.4Best.	$14.8Best.	$10.6Best.	$12.0Best.
Revenue	$9.5B	$9.5B↑51%	$6.3B↑1%	$6.3B↓63%	$16.9B
Operating Income	$2.3B	$2.3B↑679%	-$403.0M↑26%	-$548.0M↓145%	$1.2B
Net Income	$1.9B	$1.9B↑337%	-$798.0M↑53%	-$1.7B↓305%	$821.0M
EPS (Diluted)	$5.12	$5.12↑296%	$-2.61↓155%	$4.75↑79%	$2.66
Gross Margin	38.8%	38.8%↑38%	28.1%↑26%	22.2%↓17%	26.7%
Operating Margin	24.5%	24.5%↑484%	-6.4%↑27%	-8.8%↓222%	7.2%
ROE	35.6%	35.6%↑582%	-7.4%↑52%	-15.4%↓302%	7.6%
Total Debt	$6.9B↑47%	$4.7B↓37%	$7.4B↑5%	$7.1B↓19%	$8.7B
Shareholders' Equity	$5.3B	$5.3B↓51%	$10.8B↓1%	$11.0B↑2%	$10.8B
Current Ratio	1.08	1.08↓18%	1.32↓9%	1.45↓28%	2.00
Debt / Equity	1.31↑47%	0.89↑29%	0.69↑7%	0.64↓20%	0.81
Operating Cash Flow	$1.7B	$1.7B↑675%	-$294.0M↑28%	-$408.0M↓121%	$1.9B
Free Cash Flow	$1.3B	$1.3B↑264%	-$781.0M↑36%	-$1.2B↓263%	$752.0M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Computers

WDC vs Peers — Financial Grading

Revenue$9.5BMedian

Net Income$1.9BMedian

ROE35.6%Median

D/E1.31Median

Op. Margin24.5%Median

Curr. Ratio1.08Median

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Greenblatt	Piotroski	Dreman
Apple Inc.AAPL	$4.81T	$329.40	$416.2B	$112.0B	151.9%	1.23	32.0%	0.89	1/9	5/9	3/7	1/3	F-Score 8	3/11
CISCO SYSTEMS, INC.CSCO	$420.8B	$106.74	$56.7B	$10.2B	21.7%	0.60	20.8%	1.00	4/9	6/9	3/7	0/3	F-Score 8	5/11
Palo Alto Networks IncPANW	$317.7B	$388.41	$9.2B	$1.1B	14.5%	0.00	13.5%	0.94	1/9	3/9	3/7	0/3	F-Score 5	4/11
Seagate Technology Holdings plcSTX	$209.0B	$921.51	$12.2B	$3.2B	146.9%	1.65	33.6%	1.67	3/9	5/9	4/7	1/3	F-Score 8	6/11
INTERNATIONAL BUSINESS MACHINES CORPIBM	$207.3B	$219.99	$67.5B	$10.6B	32.4%	1.88	—	0.96	3/9	2/9	3/7	0/3	F-Score 6	4/11
Fortinet, Inc.FTNT	$130.2B	$175.96	$6.8B	$1.9B	149.8%	0.81	30.7%	1.17	2/9	5/9	3/7	1/3	F-Score 6	3/11
Hewlett Packard Enterprise CoHPE	$81.6B	$61.49	$34.3B	$57.0M	0.2%	0.91	-1.3%	1.01	1/9	0/9	1/7	0/3	F-Score 4	2/11
NetApp, Inc.NTAP	$41.1B	$209.18	$6.2B	$1.3B	94.4%	1.84	26.8%	1.44	3/9	5/9	3/7	1/3	F-Score 8	5/11

24 fiscal years have an unverified share basis

FY1999, FY2000, FY2001, FY2002, FY2003, FY2004, FY2005, FY2006, FY2007, FY2008, FY2009, FY2010, FY2011, FY2012, FY2013, FY2015, FY2016, FY2017, FY2018, FY2019, FY2020, FY2021, FY2022 and FY2023 could not be reconciled between the historical share price and the per-share figures reported for those years. Splits and ADS re-bundlings change what “one share” means, and the two sides are not always restated together — so ratios for those years, including P/E, P/B and margin of safety, may be scaled by a whole-number factor. Other years on this page are unaffected.

Across the whole archive, 81.5% of company-years reconcile and 18.5% do not. Unverified years are shown rather than silently corrected, because a guessed adjustment is worse than a flagged one.