Western Digital develops, manufactures, and sells data storage solutions that enable consumers, businesses, governments, and other organizations to create, manage, experience, and preserve digital content. The company was founded in 1970 and is based in Irvine, California.
WDC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Western Digital Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Western Digital Corp ranked in the 3th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Western Digital Corp, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 56. Notably, its equity weight is greater than only 9.22% of US equities in the Technology sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.55 years, is -0.35% -- higher than just 3.9% of stocks in our DCF forecasting set.
Western Digital Corp's effective tax rate, as measured by taxes paid relative to net income, is at 36 -- greater than 91.44% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WDC, try AYX, CCRC, SQ, TCX, and UPLD.
This weekend's Barron's cover story offers roundtable picks for the health care revolution. Other featured articles discuss who could benefit from a conservative Supreme Court and how to find reliable dividend stocks in emerging markets. Also, the prospects for a recently merged regional bank stock, a pair of restructuring companies, a pandemic winner and more. Cover story " The Pandemic Speeds Up the Health-Care Revolution " by Lauren R. Rublin offers Moderna Inc (NASDAQ: MRNA ) and other Barron's roundtable expert picks for the most promising developments and best investment bets in the sector. Daren Fonda's " A Right-Leaning Supreme Court Will Tackle Some Big Business Cases " suggests that a more conservative court may cut back regulation. Is that good news for likes of Facebook, Inc...
Yesterday, Western Digital (WDC) announced separating its Flash and HDD businesses into separate product units and named an industry vet as Flash's new GM.Craig-Hallum analyst Christian Schwab upgrades Western Digital from Hold to Buy, seeing the move as the first signs of potentially spinning off one of the units in the future.Schwab...
SAN JOSE, Calif.--(BUSINESS WIRE)--Enabling customers to design and build solutions for a variety of smart video workloads, Western Digital Corp. (NASDAQ: WDC) today announced its expanded family of WD Purple™ storage solutions, including the industry’s highest capacity 18TB* surveillance HDD for DVRs, NVRs and analytics appliances, and the 1TB* WD Purple SC QD101 microSD™ card for AI-enabled cameras. Setting the bar for smart video applications, all WD Purple drives are optimized to help reduc