Price to Earnings (P/E)
since 2005
Calculation
Western Digital Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) attributable to common shareholders1 (in millions) | ÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 22, 2023 | — | = | 40.42 | ÷ | -5.37 | -5.37 | = | -1,730 | ÷ | 321,895,961 | |
| Aug 25, 2022 | 10.04 | = | 47.91 | ÷ | 4.77 | 4.77 | = | 1,500 | ÷ | 314,492,541 | |
| Aug 27, 2021 | 23.78 | = | 63.24 | ÷ | 2.66 | 2.66 | = | 821 | ÷ | 308,748,049 | |
| Aug 28, 2020 | — | = | 37.84 | ÷ | -0.83 | -0.83 | = | -250 | ÷ | 302,525,787 | |
| Aug 27, 2019 | — | = | 52.66 | ÷ | -2.55 | -2.55 | = | -754 | ÷ | 296,003,875 | |
| Aug 24, 2018 | 27.54 | = | 63.81 | ÷ | 2.32 | 2.32 | = | 675 | ÷ | 291,356,809 | |
| Aug 29, 2017 | 66.90 | = | 90.07 | ÷ | 1.35 | 1.35 | = | 397 | ÷ | 294,875,015 | |
| Aug 29, 2016 | 55.30 | = | 47.08 | ÷ | 0.85 | 0.85 | = | 242 | ÷ | 284,264,636 | |
| Aug 21, 2015 | 12.49 | = | 79.44 | ÷ | 6.36 | 6.36 | = | 1,465 | ÷ | 230,402,975 | |
| Aug 15, 2014 | 14.56 | = | 100.62 | ÷ | 6.91 | 6.91 | = | 1,617 | ÷ | 234,011,170 | |
| Aug 19, 2013 | 15.53 | = | 64.20 | ÷ | 4.14 | 4.14 | = | 980 | ÷ | 236,996,062 | |
| Aug 20, 2012 | 6.95 | = | 45.32 | ÷ | 6.52 | 6.52 | = | 1,612 | ÷ | 247,262,090 | |
| Aug 12, 2011 | 9.86 | = | 30.70 | ÷ | 3.11 | 3.11 | = | 726 | ÷ | 233,191,524 | |
| Aug 13, 2010 | 4.06 | = | 24.46 | ÷ | 6.03 | 6.03 | = | 1,382 | ÷ | 229,321,305 | |
| Aug 14, 2009 | 14.92 | = | 31.20 | ÷ | 2.09 | 2.09 | = | 470 | ÷ | 224,685,608 | |
| Aug 20, 2008 | 7.29 | = | 28.53 | ÷ | 3.91 | 3.91 | = | 867 | ÷ | 221,485,710 | |
| Aug 28, 2007 | 8.32 | = | 21.42 | ÷ | 2.58 | 2.58 | = | 564 | ÷ | 219,000,000 | |
| Nov 20, 2006 | 11.68 | = | 20.79 | ÷ | 1.78 | 1.78 | = | 395 | ÷ | 221,700,000 | |
| Sep 14, 2005 | 14.77 | = | 13.53 | ÷ | 0.92 | 0.92 | = | 198 | ÷ | 216,600,000 |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Western Digital Corp. Annual Report.
The financial trajectory from 2005 to 2023 is characterized by significant volatility in both share price and earnings per share, resulting in highly inconsistent valuation multiples. A period of relative stability in the Price to Earnings (P/E) ratio was observed in the first decade, followed by extreme fluctuations and intervals of negative earnings that rendered the P/E ratio inapplicable.
- P/E Ratio Valuation Trends
- Between 2005 and 2012, the P/E ratio generally remained in a low-to-moderate range, frequently dipping below 10.00, with a notable low of 4.06 in 2010. This suggests a period of conservative market valuation relative to earnings. A sharp divergence occurred between 2016 and 2017, where the ratio spiked to 55.30 and 66.90 respectively. This surge was not driven by price appreciation alone but by a precipitous decline in earnings per share, which fell from 6.36 in 2015 to 0.85 in 2016.
- Earnings Per Share (EPS) Volatility
- Earnings demonstrated a growth trend peaking in 2014 at 6.91, followed by a period of instability. Negative earnings were recorded in 2019 (-2.55), 2020 (-0.83), and 2023 (-5.37). These deficits created gaps in the P/E sequence, as the ratio cannot be meaningfully calculated when earnings are negative. The recovery in 2021 and 2022 saw EPS return to positive territory at 2.66 and 4.77, respectively, before returning to a significant deficit in 2023.
- Share Price Correlation
- The share price exhibited a general upward trend from 2005 to 2014, reaching a peak of 100.62. However, the correlation between price and earnings weakened in the later years. For instance, while the share price remained relatively high in 2017 (90.07), the low EPS of 1.35 drove the P/E ratio to its historical peak. In more recent cycles, the share price has fluctuated between 37.84 and 63.24, reflecting a market response to the inconsistent earnings performance.
- Recent Valuation Summary
- The most recent available P/E data from 2021 to 2022 indicates a contraction in the valuation multiple, dropping from 23.78 to 10.04. This contraction occurred despite an increase in EPS, suggesting a decrease in investor willingness to pay a premium for each dollar of earnings during that specific interval.
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Comparison to Competitors
Western Digital Corp., P/E, long-term trends, comparison to competitors
| Western Digital Corp. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Aug 22, 2023 | — | 28.33 | 39.77 | 18.26 | 11.94 | — | 21.10 |
| Aug 25, 2022 | 10.04 | 24.82 | 32.05 | 15.78 | 7.31 | 31.19 | 12.72 |
| Aug 27, 2021 | 23.78 | 25.96 | 47.57 | 23.34 | 20.88 | 15.85 | 16.15 |
| Aug 28, 2020 | — | 32.24 | 37.42 | 15.46 | 6.21 | 46.62 | 17.04 |
| Aug 27, 2019 | — | 20.00 | 19.88 | 17.69 | — | — | 15.81 |
| Aug 24, 2018 | 27.54 | 16.07 | 60.93 | 1,964.84 | — | 17.86 | 24.38 |
| Aug 29, 2017 | 66.90 | 18.32 | 43.57 | 16.37 | — | — | 14.85 |
| Aug 29, 2016 | 55.30 | 13.49 | 45.89 | 14.69 | — | — | 14.46 |
| Aug 21, 2015 | 12.49 | 12.46 | 38.16 | 14.82 | — | — | 12.64 |
| Aug 15, 2014 | 14.56 | 15.60 | 52.60 | 16.14 | — | — | 22.18 |
| Aug 19, 2013 | 15.53 | 12.75 | — | 12.98 | — | — | 26.49 |
| Aug 20, 2012 | 6.95 | 13.42 | — | 12.55 | — | — | 18.42 |
| Aug 12, 2011 | 9.86 | 14.37 | — | 13.54 | — | — | 12.74 |
| Aug 13, 2010 | 4.06 | 20.16 | — | 15.56 | — | — | 13.73 |
| Aug 14, 2009 | 14.92 | 31.17 | — | 21.79 | — | — | 17.29 |
| Aug 20, 2008 | 7.29 | 19.00 | — | 16.35 | — | — | 13.14 |
| Aug 28, 2007 | 8.32 | 41.16 | — | 26.61 | — | — | 13.15 |
| Nov 20, 2006 | 11.68 | 36.65 | — | 24.85 | — | — | — |
| Sep 14, 2005 | 14.77 | 45.25 | — | 19.86 | — | — | — |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).
Comparison to Sector (Technology Hardware & Equipment)
Western Digital Corp., P/E, long-term trends, comparison to sector (technology hardware & equipment)
| Western Digital Corp. | Technology Hardware & Equipment | |
|---|---|---|
| Aug 22, 2023 | — | 27.10 |
| Aug 25, 2022 | 10.04 | 23.17 |
| Aug 27, 2021 | 23.78 | 25.67 |
| Aug 28, 2020 | — | 28.13 |
| Aug 27, 2019 | — | 21.01 |
| Aug 24, 2018 | 27.54 | 19.89 |
| Aug 29, 2017 | 66.90 | 18.27 |
| Aug 29, 2016 | 55.30 | 13.86 |
| Aug 21, 2015 | 12.49 | 12.86 |
| Aug 15, 2014 | 14.56 | 15.77 |
| Aug 19, 2013 | 15.53 | 12.81 |
| Aug 20, 2012 | 6.95 | 13.28 |
| Aug 12, 2011 | 9.86 | 14.20 |
| Aug 13, 2010 | 4.06 | 18.52 |
| Aug 14, 2009 | 14.92 | 26.30 |
| Aug 20, 2008 | 7.29 | 17.34 |
| Aug 28, 2007 | 8.32 | 31.28 |
| Nov 20, 2006 | 11.68 | 27.95 |
| Sep 14, 2005 | 14.77 | 24.65 |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).
Comparison to Industry (Information Technology)
Western Digital Corp., P/E, long-term trends, comparison to industry (information technology)
| Western Digital Corp. | Information Technology | |
|---|---|---|
| Aug 22, 2023 | — | 36.13 |
| Aug 25, 2022 | 10.04 | 26.99 |
| Aug 27, 2021 | 23.78 | 29.75 |
| Aug 28, 2020 | — | 30.97 |
| Aug 27, 2019 | — | 23.40 |
| Aug 24, 2018 | 27.54 | 23.17 |
| Aug 29, 2017 | 66.90 | 23.55 |
| Aug 29, 2016 | 55.30 | 19.69 |
| Aug 21, 2015 | 12.49 | 16.54 |
| Aug 15, 2014 | 14.56 | 17.14 |
| Aug 19, 2013 | 15.53 | 14.15 |
| Aug 20, 2012 | 6.95 | 14.37 |
| Aug 12, 2011 | 9.86 | 13.71 |
| Aug 13, 2010 | 4.06 | 15.08 |
| Aug 14, 2009 | 14.92 | 21.50 |
| Aug 20, 2008 | 7.29 | 15.83 |
| Aug 28, 2007 | 8.32 | 36.48 |
| Nov 20, 2006 | 11.68 | 32.07 |
| Sep 14, 2005 | 14.77 | 33.76 |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).