Western Digital Corporation (WDC) Stock Analysis 2026

This chart shows how WDC's revenue flows through to profit. Each row deducts a layer of costs: first the direct cost of making products/services (Cost of Revenue), then operating expenses like marketing and R&D, then taxes. What remains at the bottom is net income — the actual profit shareholders own. High gross and net margins indicate a business with strong pricing power and efficiency.

Western Digital Corporation trades at a trailing P/E of 17.07x, generates $2.27B in free cash flow, runs a debt/equity ratio of 13.44, and converts shareholder equity into profit at a 130.9% return on equity. For context: P/E ratio measures how much you pay for $1 of earnings (lower = cheaper, but fast-growing companies command higher P/E); Free Cash Flow is the cash left after running the business; Debt/Equity shows how leveraged a company is; Return on Equity shows how efficiently it turns shareholder capital into profit.

21 analysts covering Western Digital Corporation currently lean toward a Buy rating, with a mean 12-month price target of $664.92 (+41.8% vs the current price). Analysts set these targets after researching a company's earnings, competitive position, and industry trends — Strong Buy / Buy means the majority expect meaningful upside, while Hold means fair value near the current price rather than a sell signal.

Across the 1 valuation model available for WDC, fair value estimates range from $136.56 to $136.56, averaging $136.56 — below the current $468.88 price. Intrinsic value is what a stock is truly worth based on the company's fundamentals, independent of what the market prices it at today. If multiple models agree the stock is undervalued, that convergence is a stronger signal.