Invesaro

Stocks WDC DCF valuation

DCF valuation

What is Western Digital Corp worth?

With the base-case assumptions below, a discounted cash flow model on Western Digital Corp's reported free cash flow gives $94.66 per share. The share price was $456.81 on September 25, 2026, 383% above that value.

Inputs from the filings

Free cash flow, fiscal 2026
$3.51B
Average free cash flow, last 5 years
$707.6M
Cash
$1.58B
balance sheet of July 3, 2026
Debt
$1.05B
balance sheet of July 3, 2026
Diluted shares, fiscal 2026
383,000,000
Revenue growth per year, last 5 years
-5.3%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-10.0%-4.0%2.0%10.0%$60.58-87%
Base-5.0%-1.0%2.5%9.0%$94.66-79%
Bull0.0%1.5%3.0%8.0%$158.20-65%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$117.34$124.02$132.17$142.36$155.47
8.0%$100.61$104.94$110.05$116.19$123.69
9.0%$88.29$91.25$94.66$98.64$103.35
10.0%$78.83$80.93$83.32$86.04$89.18
11.0%$71.32$72.87$74.59$76.53$78.73

Where the presets come from

Base: years 1 to 5 grow at Western Digital Corp's revenue growth rate over the last 5 fiscal years (-5.3% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Western Digital Corp company page