Fundamental analysis WDC (Western Digital Corp)

Updated on 06/08/2026

Method and analysis by Lubin Danilo, founder of Lubin Investment. Score computed automatically, with no human opinion.

We analyzed Western Digital stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 8/10, meaning high quality, and a P/FCF valuation multiple of 57.6×.

Western Digital is a quality company by our criteria, but the price does not follow: the free cash flow multiple stays high. A great company bought too expensively is still a poor investment, so this is typically one to watch while waiting for a better entry point.

Sector: Computer Hardware. Listing: US. Current price: 434.30 USD.

Lubin scoring methodology

Western Digital Corp (WDC)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The thresholds come from the financial literature, not from our preferences: see the valuation work of Aswath Damodaran (NYU Stern) and the SEC investor education resources (investor.gov).

Western Digital's accounts are public: you can check every figure in its official 10-K filings with the SEC (EDGAR).

The 10 quantitative criteria analyzed

1. Profitable: net margin > 5%
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Growing revenue per employee: revenue and revenue per employee both grow ≥ 10%/year over 5 years; partial when only one growth driver reaches its tier (fallback: free cash flow margin > 10% when employee history is unavailable)
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Its price against peers

Against the 5 other Computer Hardware stocks we have scored, Western Digital trades at 57.6× its free cash flow, versus a median of 13.8× for that basket. On price alone, Western Digital is therefore more expensive than its peers. That says nothing about its quality: at Lubin Investment, quality and price are judged separately, and a low multiple is only a bargain if the quality holds up.

Frequently asked questions

Is Western Digital a quality stock?

Western Digital gets a quality score of 8/10 (high quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Western Digital's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Western Digital's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Western Digital stock is 57.6×. At Lubin Investment, valuation is judged separately from quality.

Where to see Western Digital's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/WDC?lng=en.

Other stocks in the Computer Hardware sector

• Sandisk (SNDK), score 9/10, P/FCF 43.2×
• Logitech International (LOGNE.SW), score 9/10, P/FCF 12.9×
• Logitech International (LOGN.SW), score 9/10, P/FCF 12.9×
• Logitech international (LOGI), score 9/10, P/FCF 13.8×

Go further

👉 See the full interactive analysis of WDC

Other resources : All stocks in the Computer Hardware sector.