Workday Inc. (NASDAQ:WDAY)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibits significant volatility over the observed periods. Data is missing for the years 2020, 2021, and 2023. In 2022, the ratio spikes dramatically to 1957.29, indicating an unusually high market valuation relative to earnings, which could suggest either earnings were extremely low or negative or market expectations were unusually optimistic for that year. Subsequently, the ratio declines to 50.53 in 2024 and then increases again to 122.85 in 2025, suggesting continued high valuation multiples but with reduced extremity compared to 2022.

Price to Operating Profit (P/OP) Ratio

Available data for the Price to Operating Profit ratio is limited to 2024 and 2025, with values of 381.31 and 155.71, respectively. The ratio decreases substantially from 381.31 to 155.71, indicating a notable improvement in operating profitability relative to market price over this one-year span, though overall valuations remain high.

Price to Sales (P/S) Ratio

The Price to Sales ratio shows a general declining trend across the available periods. Starting at 10.65 in 2020, it rises slightly to 13.95 in 2021, then decreases over the following years to 11.19 in 2022 and 7.71 in 2023. The ratio slightly increases to 9.61 in 2024, before dropping again to 7.65 in 2025. This pattern suggests fluctuating market valuation relative to sales, with an overall movement towards lower multiples in recent years, potentially reflecting either improved sales performance or reduced market optimism.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio generally declines from 15.54 in 2020 to 7.15 in 2025, indicating a steady decrease in the market valuation relative to the company's book value. After peaking at 18.38 in 2021, the ratio falls sharply in subsequent years to 12.68 in 2022, then further to 8.58 in 2023. It remains relatively stable in 2024 at 8.63 before declining again to 7.15 in 2025. This trend may suggest a market reassessment of asset value or changes in equity valuations.

Share Price Trend

The share price exhibited variable movement over the observed periods. Initially, there was a significant increase from 166.56 USD in 2020 to 247.96 USD in 2021, followed by a moderate decline to 229.05 USD in 2022. Subsequently, the price decreased further to 184.93 USD in 2023 before experiencing a strong rebound to 264.32 USD in 2024. In the most recent period of 2025, the share price moderated slightly to 242.93 USD.

Earnings Per Share (EPS) Development

The EPS showed a fluctuating and generally unstable pattern throughout the years. In 2020 and 2021, the company reported negative earnings per share, reflecting losses, though the magnitude of the loss was reduced from -2.07 to -1.16 USD. A positive EPS of 0.12 USD appeared in 2022, indicating a brief profitable phase, but this was followed by a decline back to a negative EPS of -1.42 USD in 2023. Subsequently, there was a significant improvement with EPS rising sharply to 5.23 USD in 2024, before declining to 1.98 USD in 2025. This volatility suggests inconsistency in profitability over the reviewed timeframe.

Price-to-Earnings (P/E) Ratio Analysis

The P/E ratio data is sporadic, with missing values in the early periods. Where available, the P/E ratio exhibits extreme variation. In 2022, the ratio surged to an unusually high level of 1957.29, likely reflecting the very low positive EPS of 0.12 USD that year. In 2024, the P/E ratio normalized substantially to 50.53, corresponding with the elevated EPS of 5.23 USD. By 2025, it increased again to 122.85, which aligns with the reduction in EPS to 1.98 USD. The high P/E ratios in 2022 and 2025 suggest elevated market expectations or valuation volatility relative to earnings.

Overall Financial Insights

The data reflects a company experiencing notable volatility in profitability and market valuation. The share price has generally trended upward despite fluctuations, indicative of positive investor sentiment or growth expectations. The oscillation in EPS, transitioning from losses to profitability and back, underscores operational challenges or variability in business performance. Correspondingly, the P/E ratio shows extreme fluctuations when EPS is near zero or very low, reflecting valuation sensitivity to earnings changes. The improvement in EPS and share price in 2024 suggests a period of stronger financial performance, though the subsequent declines in 2025 indicate ongoing instability.

Share Price Trend

The share price exhibited a general upward trend from January 31, 2020, to January 31, 2024, increasing from $166.56 to a peak of $264.32. However, there was a decline to $184.93 in January 2023, indicating some volatility during this period. In the latest period ending January 31, 2025, the share price decreased slightly to $242.93, reflecting a moderate correction after the previous peak.

Operating Profit per Share

Operating profit per share showed consistent improvement over the years. Initially, it was negative at -$2.16 in 2020, indicating operating losses on a per-share basis. This loss gradually narrowed each year, reaching -$0.46 in 2022. Although there was a temporary increase in operating loss to -$0.86 in 2023, a notable shift to profitability occurred thereafter with positive values of $0.69 in 2024 and further growth to $1.56 in 2025.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio was not available for the earlier years, but for the last two years, it indicated extremely high valuation multiples of 381.31 in 2024 and 155.71 in 2025. Despite the improvement in operating profit per share and a slight decline in share price, this metric implies that the market still values the company at a premium relative to its current operating earnings.

Share Price

The share price exhibited a general upward trend from 166.56 US$ in January 2020 to a peak of 264.32 US$ in January 2024, representing a significant appreciation over five years. However, the price experienced fluctuations during this period: it rose sharply from 166.56 US$ to 247.96 US$ by January 2021, then declined to 229.05 US$ in January 2022, followed by a further drop to 184.93 US$ in January 2023. After this decline, the share price rebounded strongly to 264.32 US$ in January 2024 but decreased again to 242.93 US$ in January 2025, indicating volatility in the market valuation.

Sales per Share

Sales per share showed consistent growth throughout the entire period. Starting at 15.63 US$ in January 2020, sales per share increased steadily each year, reaching 31.75 US$ by January 2025. This upward trajectory suggests improving operational performance and revenue generation capabilities on a per-share basis, which may contribute positively to shareholder value over time.

Price-to-Sales (P/S) Ratio

The P/S ratio followed a variable pattern. Initially, it rose from 10.65 in January 2020 to 13.95 in January 2021, indicating that the share price increased faster than sales per share during that year. Afterwards, the ratio declined to 11.19 in January 2022 and then dropped sharply to 7.71 in January 2023, signaling that the stock became less expensive relative to sales. The P/S ratio slightly recovered to 9.61 in January 2024 before decreasing again to 7.65 in January 2025. This fluctuation suggests changes in market sentiment, valuation metrics, or growth expectations relative to sales performance.

Overall Insights

The financial data reflect a company with steadily improving sales efficiency on a per-share basis. Although the share price has generally increased over the five-year period, it has shown volatility with periods of both declines and recoveries. The P/S ratio's decline from the high levels seen in 2021 indicates a relative price correction or a recalibration of market valuation despite ongoing revenue growth. This behavior highlights a maturing market perspective, balancing growth prospects against market risks and possibly reflecting broader economic or sector-specific influences.

The financial data reveals several key trends over the six-year period ending January 31, 2025. The share price exhibits notable fluctuations, with an overall upward trajectory despite some volatility. The price increased significantly from $166.56 in 2020 to a peak of $264.32 in early 2024, before experiencing a slight decline to $242.93 by 2025.

Book value per share (BVPS) shows a consistent and strong increase throughout the period. Starting at $10.72 in 2020, it rose steadily each year, reaching $33.96 in 2025. This steady growth in BVPS indicates an overall strengthening of the company’s net asset value per share over time.

The price-to-book value ratio (P/BV) demonstrates a clear downward trend, decreasing from a very high multiple of 15.54 in 2020 to 7.15 in 2025. This decline suggests that the market price is becoming more aligned with the underlying book value, potentially reflecting a more balanced market valuation or a reduction in growth expectations relative to earlier years.

Share Price

Displayed significant growth from 2020 to early 2024, followed by a pullback in 2025.

Book Value Per Share (BVPS)

Experienced steady and continuous growth, more than tripling over the six-year span.

Price-to-Book Ratio (P/BV)

Decreased significantly, indicating that the share price growth did not keep pace proportionally with the growth in book value, resulting in a lower premium relative to book value.

In summary, the data indicates that while the market continued to value the company’s shares at a premium, this premium decreased over time as the company's intrinsic book value strengthened substantially. The combination of rising BVPS and falling P/BV ratios suggests increased confidence in the company's asset base but more cautious market sentiment regarding elevated share price multiples compared to earlier periods.