Enterprise Value (EV)
Current Enterprise Value (EV)
Western Digital Corp., current enterprise value calculation
| Current share price (P) | $57.32 |
| No. shares of common stock outstanding | 325,859,745 |
| US$ in millions | |
| Common equity (market value)1 | 18,678) |
| Add: Convertible preferred stock, $0.01 par value (per books) | 876) |
| Total equity | 19,554) |
| Add: Current portion of long-term debt (per books) | 1,213) |
| Add: Long-term debt, less current portion (per books) | 5,857) |
| Total equity and debt | 26,624) |
| Less: Cash and cash equivalents | 2,023) |
| Enterprise value (EV) | 24,601) |
Based on: 10-K (reporting date: 2023-06-30).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 57.32 × 325,859,745
Historical Enterprise Value (EV)
Western Digital Corp., EV calculation
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 Closing price as at the filing date of Western Digital Corp. Annual Report.
3 2023 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 40.42 × 321,895,961
The financial trajectory between June 2018 and June 2023 is characterized by significant volatility in market valuation and enterprise value, with a notable peak occurring in 2021 followed by a sustained contraction.
- Market Value of Common Equity
- Equity values experienced a progressive decline from 18,591 million USD in 2018 to a low of 11,448 million USD in 2020. A sharp recovery occurred in 2021, reaching a peak of 19,525 million USD, before trending downward again to 13,011 million USD by 2023.
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- Enterprise Value (EV) Trends
- The enterprise value closely mirrors the volatility of the market equity. EV declined from 24,758 million USD in 2018 to 17,975 million USD in 2020. Similar to the equity trend, EV spiked to 24,880 million USD in 2021 before receding to 18,934 million USD by the end of the period. This indicates that the overall valuation of the business operations has decreased by approximately 23.5% since 2018.
- Capital Structure and Net Debt Impact
- A consistent gap is observed between the total equity and debt and the enterprise value, suggesting a significant cash position used to offset total liabilities in the EV calculation. This difference was most pronounced in 2018 at 5,005 million USD and narrowed to 2,023 million USD by 2023, indicating a reduction in the net cash offset over the six-year period.
- Total Equity and Debt Correlation
- Total equity and debt fluctuated in alignment with the market value, peaking at 28,250 million USD in 2021 and ending at 20,957 million USD in 2023. The synchronization between the market value of equity and the total capital structure suggests that market sentiment was a primary driver of the total valuation shifts during this timeframe.
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