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 6th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. 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 53. Its equity weight surpasses that of only 11.15% of free cash flow generating stocks in the Technology sector.
The company's compound free cash flow growth rate over the past 5.25 years comes in at -0.25%; that's greater than just 7.19% of US stocks we're applying DCF forecasting to.
Western Digital Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.33. This coverage rate is greater than that of just 13% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Western Digital Corp? See DOCU, IMOS, ON, DDD, and KLIC.