Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Western Digital Corp., current price multiples
| Western Digital Corp. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | Technology Hardware & Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||
| Current share price (P) | $57.32 | |||||||||||
| No. shares of common stock outstanding | 325,859,745 | |||||||||||
| Earnings per share (EPS) | $-5.31 | |||||||||||
| Operating profit per share | $-3.94 | |||||||||||
| Sales per share | $37.80 | |||||||||||
| Book value per share (BVPS) | $35.98 | |||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to sales (P/S) | 1.52 | 11.96 | 28.93 | 6.64 | 3.15 | 28.02 | 0.73 | 11.00 | 18.23 | |||
| Price to book value (P/BV) | 1.59 | 67.51 | 21.06 | 8.37 | — | 18.19 | 1.96 | 53.80 | 28.16 | |||
Based on: 10-K (reporting date: 2023-06-30).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Western Digital Corp., historical price multiples
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).
An analysis of the valuation multiples from 2018 through 2023 reveals significant volatility in earnings-based metrics and relative stability in revenue and asset-based multiples. The presence of missing values in several years suggests periods of negative earnings or operating losses, which heavily influenced the price-to-earnings and price-to-operating profit ratios.
- Earnings and Operating Profit Multiples
- The Price to Earnings (P/E) ratio exhibits extreme instability, with data unavailable for 2019, 2020, and 2023, indicating probable net losses during those fiscal years. A notable contraction is observed between 2021 and 2022, where the ratio fell from 23.78 to 10.04. Similarly, the Price to Operating Profit (P/OP) ratio experienced a dramatic spike to 179.17 in 2019, followed by a consistent downward trend to 6.30 by 2022, suggesting a period of severe operating profit compression followed by a gradual recovery in operational efficiency relative to share price.
- Revenue Valuation
- The Price to Sales (P/S) ratio remained the most stable of the observed metrics, fluctuating within a narrow range between 0.68 and 1.15. A peak was reached in 2021 at 1.15, while the 2023 ratio of 1.06 indicates a valuation closely aligned with its annual revenue, returning to levels similar to those seen in 2018 and 2019.
- Book Value Valuation
- The Price to Book Value (P/BV) ratio shows a general long-term decline, moving from 1.61 in 2018 to 1.11 in 2023. Despite a temporary increase to a peak of 1.82 in 2021, the subsequent decline suggests a reduction in the market premium attributed to the company's net asset value over the analyzed period.
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Price to Earnings (P/E)
Western Digital Corp., historical P/E calculation, comparison to benchmarks
| Jun 30, 2023 | Jul 1, 2022 | Jul 2, 2021 | Jul 3, 2020 | Jun 28, 2019 | Jun 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 321,895,961 | 314,492,541 | 308,748,049 | 302,525,787 | 296,003,875 | 291,356,809 | |
| Selected Financial Data (US$) | |||||||
| Net income (loss) attributable to common shareholders (in millions) | (1,730) | 1,500) | 821) | (250) | (754) | 675) | |
| Earnings per share (EPS)2 | -5.37 | 4.77 | 2.66 | -0.83 | -2.55 | 2.32 | |
| Share price1, 3 | 40.42 | 47.91 | 63.24 | 37.84 | 52.66 | 63.81 | |
| Valuation Ratio | |||||||
| P/E ratio4 | — | 10.04 | 23.78 | — | — | 27.54 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Apple Inc. | 28.33 | 24.82 | 25.96 | 32.24 | — | — | |
| Arista Networks Inc. | 39.77 | 32.05 | 47.57 | — | — | — | |
| Cisco Systems Inc. | 18.26 | 15.78 | 23.34 | — | — | — | |
| Dell Technologies Inc. | 11.94 | 7.31 | 20.88 | — | — | — | |
| Lumentum Holdings Inc. | — | 31.19 | 15.85 | — | — | — | |
| Super Micro Computer Inc. | 21.10 | 12.72 | 16.15 | — | — | — | |
| P/E Ratio, Sector | |||||||
| Technology Hardware & Equipment | 27.10 | 23.17 | 25.67 | — | — | — | |
| P/E Ratio, Industry | |||||||
| Information Technology | 36.13 | 26.99 | 29.70 | — | — | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income (loss) attributable to common shareholders ÷ No. shares of common stock outstanding
= -1,730,000,000 ÷ 321,895,961 = -5.37
3 Closing price as at the filing date of Western Digital Corp. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 40.42 ÷ -5.37 = —
5 Click competitor name to see calculations.
The stock valuation metrics exhibit significant volatility over the six-year period, characterized by frequent shifts between profitability and net losses. This instability is primarily reflected in the intermittent availability of the Price to Earnings (P/E) ratio, which remains undefined during periods of negative earnings.
- Earnings per Share (EPS) Volatility
- Earnings per share have fluctuated drastically, moving from a positive 2.32 US$ in 2018 to losses in 2019 and 2020. A recovery occurred in 2021 and 2022, with the latter reaching a peak of 4.77 US$, before a substantial decline to -5.37 US$ in 2023.
- Price to Earnings (P/E) Ratio Compression
- A downward trajectory is observed in the P/E ratio during years of profitability. The ratio decreased from 27.54 in 2018 to 23.78 in 2021, and further contracted to 10.04 by 2022. This trend indicates a significant reduction in the valuation multiple the market was willing to assign to the company's earnings over time.
- Share Price Correlation
- The share price followed an irregular path, declining from 63.81 US$ in 2018 to a low of 37.84 US$ in 2020. Although a recovery to 63.24 US$ occurred in 2021, the price subsequently declined to 40.42 US$ by 2023, mirroring the return to negative earnings per share.
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Price to Operating Profit (P/OP)
Western Digital Corp., historical P/OP calculation, comparison to benchmarks
| Jun 30, 2023 | Jul 1, 2022 | Jul 2, 2021 | Jul 3, 2020 | Jun 28, 2019 | Jun 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 321,895,961 | 314,492,541 | 308,748,049 | 302,525,787 | 296,003,875 | 291,356,809 | |
| Selected Financial Data (US$) | |||||||
| Operating income (loss) (in millions) | (1,285) | 2,391) | 1,220) | 335) | 87) | 3,617) | |
| Operating profit per share2 | -3.99 | 7.60 | 3.95 | 1.11 | 0.29 | 12.41 | |
| Share price1, 3 | 40.42 | 47.91 | 63.24 | 37.84 | 52.66 | 63.81 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | — | 6.30 | 16.00 | 34.17 | 179.17 | 5.14 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Apple Inc. | 24.04 | 20.74 | 22.56 | 27.92 | — | — | |
| Arista Networks Inc. | 36.78 | 28.39 | 43.25 | — | — | — | |
| Cisco Systems Inc. | 15.32 | 13.35 | 19.26 | — | — | — | |
| Dell Technologies Inc. | 5.05 | 8.73 | 13.19 | — | — | — | |
| Lumentum Holdings Inc. | — | 20.45 | 11.95 | — | — | — | |
| Super Micro Computer Inc. | 17.74 | 10.82 | 14.57 | — | — | — | |
| P/OP Ratio, Sector | |||||||
| Technology Hardware & Equipment | 22.51 | 19.67 | 21.95 | — | — | — | |
| P/OP Ratio, Industry | |||||||
| Information Technology | 30.04 | 22.89 | 26.21 | — | — | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= -1,285,000,000 ÷ 321,895,961 = -3.99
3 Closing price as at the filing date of Western Digital Corp. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 40.42 ÷ -3.99 = —
5 Click competitor name to see calculations.
The analysis of the Price to Operating Profit (P/OP) ratio reveals significant volatility over the six-year period, driven primarily by drastic fluctuations in operating profit per share rather than consistent movements in the share price.
- Operating Profit Volatility
- Operating profit per share experienced an extreme contraction between June 2018 and June 2019, falling from 12.41 US$ to 0.29 US$. While a recovery trend was observed from 2020 through 2022, reaching a peak of 7.60 US$ in July 2022, this momentum reversed sharply by June 2023, resulting in an operating loss of 3.99 US$ per share.
- P/OP Ratio Trends
- The P/OP ratio reached an anomalous peak of 179.17 in June 2019, a direct consequence of the collapse in operating profits. Following this peak, the ratio entered a period of steady compression as profitability recovered, declining to 34.17 in 2020, 16.00 in 2021, and 6.30 in 2022. This downward trend in the multiple suggests a return to valuation levels similar to those seen in June 2018.
- Valuation Divergence
- A critical divergence is noted in June 2023, where the P/OP ratio is no longer applicable. This is attributed to the transition from positive operating profit to a net operating loss, rendering the price multiple an ineffective measure of valuation for the final period analyzed.
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Price to Sales (P/S)
Western Digital Corp., historical P/S calculation, comparison to benchmarks
| Jun 30, 2023 | Jul 1, 2022 | Jul 2, 2021 | Jul 3, 2020 | Jun 28, 2019 | Jun 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 321,895,961 | 314,492,541 | 308,748,049 | 302,525,787 | 296,003,875 | 291,356,809 | |
| Selected Financial Data (US$) | |||||||
| Revenue, net (in millions) | 12,318) | 18,793) | 16,922) | 16,736) | 16,569) | 20,647) | |
| Sales per share2 | 38.27 | 59.76 | 54.81 | 55.32 | 55.98 | 70.86 | |
| Share price1, 3 | 40.42 | 47.91 | 63.24 | 37.84 | 52.66 | 63.81 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 1.06 | 0.80 | 1.15 | 0.68 | 0.94 | 0.90 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Apple Inc. | 7.17 | 6.28 | 6.72 | 6.74 | — | — | |
| Arista Networks Inc. | 14.17 | 9.89 | 13.57 | — | — | — | |
| Cisco Systems Inc. | 4.04 | 3.62 | 4.96 | — | — | — | |
| Dell Technologies Inc. | 0.28 | 0.40 | 0.72 | — | — | — | |
| Lumentum Holdings Inc. | 2.01 | 3.62 | 3.61 | — | — | — | |
| Super Micro Computer Inc. | 1.90 | 0.70 | 0.51 | — | — | — | |
| P/S Ratio, Sector | |||||||
| Technology Hardware & Equipment | 5.57 | 4.94 | 5.44 | — | — | — | |
| P/S Ratio, Industry | |||||||
| Information Technology | 7.31 | 6.01 | 6.97 | — | — | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Revenue, net ÷ No. shares of common stock outstanding
= 12,318,000,000 ÷ 321,895,961 = 38.27
3 Closing price as at the filing date of Western Digital Corp. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 40.42 ÷ 38.27 = 1.06
5 Click competitor name to see calculations.
The valuation metrics for Western Digital Corp. between 2018 and 2023 exhibit significant volatility, characterized by fluctuating market pricing and a general decline in revenue generation per share. The Price-to-Sales (P/S) ratio has moved within a range of 0.68 to 1.15, indicating varying levels of market confidence relative to the company's top-line performance.
- Share Price Trends
- A non-linear trajectory is observed in the share price, which declined from 63.81 USD in 2018 to a period low of 37.84 USD in 2020. A sharp recovery occurred in 2021, with the price reaching 63.24 USD, before trending downward again to 40.42 USD by June 2023.
- Sales per Share Performance
- There is a clear downward trend in sales per share over the analyzed period. From a high of 70.86 USD in 2018, the value experienced a gradual decline, remaining relatively stable between 2019 and 2021 around the 55 USD mark. A significant contraction occurred in 2023, where sales per share dropped to 38.27 USD, representing a substantial decrease in revenue efficiency per outstanding share.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio has demonstrated cyclical behavior. The ratio reached its lowest point of 0.68 in 2020, coinciding with the lowest share price of the period. The peak valuation occurred in 2021 at 1.15, driven by a surge in share price while sales per share remained stagnant. By 2023, the P/S ratio rose to 1.06; notably, this increase occurred despite a sharp decline in sales per share, suggesting that the market price did not contract as severely as the revenue per share during that fiscal year.
In summary, the relationship between share price and sales per share has shifted over time. While the early years were characterized by higher revenue per share, the latter period shows a market valuation that is increasingly decoupled from revenue growth, as evidenced by the rising P/S ratio in 2023 despite falling sales.
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Price to Book Value (P/BV)
Western Digital Corp., historical P/BV calculation, comparison to benchmarks
| Jun 30, 2023 | Jul 1, 2022 | Jul 2, 2021 | Jul 3, 2020 | Jun 28, 2019 | Jun 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 321,895,961 | 314,492,541 | 308,748,049 | 302,525,787 | 296,003,875 | 291,356,809 | |
| Selected Financial Data (US$) | |||||||
| Shareholders’ equity (in millions) | 11,723) | 12,221) | 10,721) | 9,551) | 9,967) | 11,531) | |
| Book value per share (BVPS)2 | 36.42 | 38.86 | 34.72 | 31.57 | 33.67 | 39.58 | |
| Share price1, 3 | 40.42 | 47.91 | 63.24 | 37.84 | 52.66 | 63.81 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 1.11 | 1.23 | 1.82 | 1.20 | 1.56 | 1.61 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Apple Inc. | 44.21 | 48.89 | 38.96 | 28.33 | — | — | |
| Arista Networks Inc. | 11.50 | 8.87 | 10.05 | — | — | — | |
| Cisco Systems Inc. | 5.19 | 4.69 | 5.99 | — | — | — | |
| Dell Technologies Inc. | — | — | 27.38 | — | — | — | |
| Lumentum Holdings Inc. | 2.62 | 3.31 | 3.19 | — | — | — | |
| Super Micro Computer Inc. | 6.85 | 2.54 | 1.65 | — | — | — | |
| P/BV Ratio, Sector | |||||||
| Technology Hardware & Equipment | 27.27 | 28.45 | 24.77 | — | — | — | |
| P/BV Ratio, Industry | |||||||
| Information Technology | 11.29 | 10.25 | 12.35 | — | — | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 11,723,000,000 ÷ 321,895,961 = 36.42
3 Closing price as at the filing date of Western Digital Corp. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 40.42 ÷ 36.42 = 1.11
5 Click competitor name to see calculations.
The valuation of the common stock from June 2018 to June 2023 exhibits a general contraction in the price-to-book value multiple, driven primarily by fluctuations in the market price of the shares relative to a more stable book value per share.
- Share Price Volatility
- The share price experienced significant variance, starting at 63.81 US$ in 2018 and ending at 40.42 US$ in 2023. A notable decline occurred by 2020, reaching a low of 37.84 US$, followed by a sharp recovery to a peak of 63.24 US$ in 2021, before trending downward again over the final two years.
- Book Value Per Share (BVPS) Stability
- The book value per share remained relatively consistent, fluctuating within a narrower band between 31.57 US$ and 39.58 US$. After a slight decline between 2018 and 2020, the BVPS recovered toward 38.86 US$ by 2022, before experiencing a minor decrease to 36.42 US$ in 2023.
- Price to Book Value (P/BV) Ratio Trends
- The P/BV ratio followed the trajectory of the share price, starting at 1.61 in 2018. The ratio reached its maximum of 1.82 in 2021, reflecting a period of higher market valuation relative to assets. However, a subsequent contraction is evident, with the ratio falling to 1.11 by June 2023, the lowest level observed in the period. This trend indicates a reduction in the premium that investors are willing to pay over the company's accounting net asset value.
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