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WDC

WDC

Technology · Computer Hardware

$671.75+2.78%
Mkt Cap: $231.54BDY: 0.09%

Performance

WDC (WDC) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

WDC (WDC) operates in the Computer Hardware space within the Technology sector. With a market cap of $231.5B, it qualifies as a large-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.

Bull Case5
  • Forward P/E (37.2×) is lower than trailing P/E (40.2×) — analysts expect earnings to improve
  • Revenue grew 46% year-over-year — exceptional top-line expansion
  • Earnings grew 483% YoY — bottom-line is expanding fast
  • Exceptional profit margin of 55.3% — the business retains a large share of each dollar earned
  • ROE of 85.9% shows management efficiently converts equity into profit
Bear Case4
  • High P/E of 40.2× implies high expectations already priced in — leaves little room for disappointment
  • High debt-to-equity of 17.81× increases financial risk, especially with elevated interest rates
  • Price is near its 52-week high — limited near-term upside, higher pullback risk
  • High beta of 2.20 — this stock is significantly more volatile than the broader market

Verdict

Buy / Hold

More positives than negatives. Fundamentals support holding while monitoring key risks.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

Current DY

0.09%

5Y Avg Annual

$0.8003

Last Payment

$0.1500

Ex-Date

06/05/2026

Annual dividends paid per share

2012
2017
2026
Ex-DatePaymentAmountEst. DY
Latest06/05/2026
06/17/2026$0.15000.09%
03/05/2026
03/17/2026$0.12500.07%
12/04/2025
12/16/2025$0.12500.07%
09/04/2025
09/16/2025$0.10000.06%
06/04/2025
06/16/2025$0.10000.06%
04/02/2020
04/14/2020$0.37790.23%
01/02/2020
01/14/2020$0.37790.23%
10/03/2019
10/15/2019$0.37790.23%

Magic Number

Shares needed to self-fund your next purchase

$671.75

Price

÷

$0.1500

Last div. (yearly)

=

4,479

shares

Own 4,479 WDC shares ($3,008,768.70) and each yearly dividend pays for 1 new share — the snowball runs on its own.

Investment target

$3,008,768.70

New shares / year

+1 shares

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Jul 29, 2026

43

days

EPS (TTM)

$16.73

P/E (TTM)

40.2

Fwd P/E

37.2

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$231.54B
P/E Ratio40.15
Forward P/E37.21
P/B Ratio
PEG Ratio0.50
EPS (TTM)$16.73

Trading

Open
Day High
Day Low
52W High$729.92
52W Low$57.88
Volume
Avg Volume (3M)7,776,166
Beta2.20

Dividends

Dividend Yield0.09%
Annual Rate$0.60
Ex-Div Date2026-06-05
Payout Ratio2.69%

Profitability

Profit Margin55.29%
Operating Margin37.01%
ROE85.92%
ROA14.65%
Revenue Growth45.50%
Earnings Growth482.90%

Balance Sheet

Total Revenue$11.78B
Total Debt$1.72B
Debt / Equity17.81
Current Ratio1.49
Free Cash Flow$2.08B

Fair Value Estimates

Current price: $671.75

Graham Number

√(22.5 × EPS × Book Value)

$88.73

-86.8% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

$17.46

-97.4% downside

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

9/10

90% score

Pays dividends

14Y hist.

14+ years of dividend history

Dividend consistency (5Y+)

14 yrs

Uninterrupted dividend payments for at least 5 years

ROE above 10%

85.9%

Return on equity — measures how efficiently capital is used

Positive profit margin

55.3%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+45.5%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

+482.9%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

17.81×

Low financial leverage reduces risk of distress

Current ratio above 1

1.49×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$5.2B/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

0.09%

Stock must distribute income to shareholders

Related Assets

Technology

About 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. It sells its data storage devices and solutions through its computer manufacturers, sales personnel, dealers, distributors, and retailers. The company has a collaboration with Open Quantum Design for the development of quantum error correction technology and related systems to advance reliable quantum computing. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.

Sector

Technology

Industry

Computer Hardware

Location

San Jose, United States

Employees

40,000