What is Western Digital Corporation (WDC) DCF Fair Value and Intrinsic Value in 2026?

Western Digital Corporation (WDC) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Western Digital Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

Western Digital Corporation operates in the Technology sector (Computer Hardware) with an economic moat rating of NONE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Western Digital Corporation's financial health rating and Piotroski F-Score?

Western Digital Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Western Digital Corporation (WDC) for quarterly SEC filing thesis breaks?

LocalAlpha audits Western Digital Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksWDC

WDC

Western Digital CorporationTechnology / Computer HardwareINTACT

Western Digital Corporation engages in the development, manufacture, and sale of 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 sales personnel, dealers, distributors, retailers, and subsidiaries. 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.

Share Price

$477.30

52W: $93.92 - $799.87

DCF Fair Value

$202.07

-136.2% Premium

Thesis Hub

P/E (TTM)

17.7x

ROIC

32.7%

Operating Margin

43.6%

FCF Yield

1.3%

Debt / Equity

0.13x

Piotroski Score

7/9

Altman Z-Score

2.97

Market Cap

$172.1B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($202.07)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$202.07

MOS Buy Target (-25%)

$151.55

Valuation Overlays: DCF Fair Value ($202.07) 25% MOS Buy Target ($151.55) Revised Graham ($950.05) Graham Number ($112.55)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$477.30

DCF Fair Value

$201.84

-136.5% Premium

Starting Free Cash Flow ($M)$2,269M

$100M$2,269M (Reported)$50,000M

Stage 1 Growth (Years 1-5)18.0%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$400M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$29.4B

PV of Terminal Value

$43.1B

Implied Enterprise Value

$72.5B

Implied Equity Value

$72.9B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$2,677	$3,159	$3,728	$4,399	$5,191	$5,425	$5,669	$5,924	$6,190	$6,469
Present Value (PV)	$2,456	$2,659	$2,879	$3,116	$3,374	$3,234	$3,101	$2,973	$2,850	$2,733

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-324% Premium

$112.57

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $26.92BVPS: $20.92

Revised Graham Formula+49.8% MoS

$950.05

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings1.3% Yield

$5.97 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.2BYield: 1.3%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER

23.5% CAGR (Next 10 Yrs)

At the current price of $477.30, the market is assuming the business will compound Free Cash Flow at 23.5% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

⚠ High expectations: Leaves minimal margin of safety for operational hiccups.

Autonomous Thesis Underwriting

Surveil WDC with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Western Digital Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 43.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Western Digital Corporation (WDC) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Western Digital Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Western Digital Corporation has an estimated DCF intrinsic fair value of $202.07 per share compared to its current market price of $477.30. This represents an estimated 136.2% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $112.55.