Workday Inc. (NASDAQ:WDAY)

Price to Earnings (P/E) Ratio

The price to earnings ratio exhibits substantial volatility over the observed periods. Initially, for several quarters, the data is not available. When it first appears, the ratio is extremely high, peaking at 2418.34 and then slightly declining to 1957.29. Subsequently, the ratio fluctuates significantly but demonstrates a marked downtrend from values in the hundreds and thousands towards more moderate levels around 50.53 to 88.22 in the latest quarters. This pattern suggests periods of very high market valuations relative to earnings, followed by corrections to more sustainable levels.

Price to Operating Profit (P/OP) Ratio

The price to operating profit ratio data begins later in the series and presents extremely high values initially, reaching over 4000. Over time, there is a consistent downward trajectory with values decreasing to about 91.2 by the most recent quarter. This decline indicates a convergence towards lower market valuations relative to operating profit, possibly reflecting either improving operating profits or adjustment in market pricing multiples.

Price to Sales (P/S) Ratio

The price to sales ratio fluctuates within a moderate range. Starting around 11.23, it rises to a peak near 15.28 before experiencing a general downward trend, reducing to near 6.14 in later periods. Despite some fluctuations, the longer-term view shows a gradual decrease in the ratio, implying a reduction in price relative to sales revenue, which could be due to increasing sales figures, declining stock price, or a combination of both.

Price to Book Value (P/BV) Ratio

This ratio begins at a relatively high level near 16.49 and shows significant fluctuations before trending downward towards values around 6.38 in the latest quarters. Such decline indicates a diminishing premium of market price relative to book value, which may reflect changes in investor perception of the company's asset base or adjustments in stock valuation.

Overall Insights

The financial valuation ratios collectively indicate that the company experienced periods of very high market valuation relative to earnings, operating profit, sales, and book value, followed by a phase of correction or normalization. The general trend across all valuations is a downward movement from exceptionally elevated multiples towards more moderate levels. This pattern may suggest volatility in market sentiment, evolving operational performance, or shifts in external market conditions influencing investor expectations.

The analysis of the financial data reveals notable fluctuations across the examined periods. The share price exhibits an overall volatile pattern with several peaks and troughs. Initially, the share price increased significantly from $182.56 to $299.09 in late 2021, followed by a sharp decline to $143.30 by October 2022. Subsequently, there was a recovery trend reaching $264.32 in early 2024, but it declined again towards mid-2025, ending near $215.34.

Share Price

The share price shows periods of strong appreciation followed by sharp declines, indicating market sensitivity or company-specific events influencing investor sentiment. Noteworthy declines occurred between early 2022 and late 2022, and again from early 2024 to mid-2025.

Earnings Per Share (EPS)

EPS improved steadily from significantly negative values in early 2020 (-2.22 USD) to positive territory by late 2021 (0.12 USD). This positive trend continued through early 2024, peaking remarkably at 6.09 USD. However, after this peak, EPS experienced a decline but remained positive, ending at 2.44 USD by mid-2025.

Price-to-Earnings (P/E) Ratio

The P/E ratio data is sparse but highlights extremely high valuations in early 2022 and early 2024, exceeding 900 and even 2,400 at certain points. The ratio significantly dropped to more moderate levels ranging from approximately 37 to 130 in later periods, suggesting that valuation became more aligned with earnings as EPS improved substantially.

Overall, the company transitioned from sustained losses per share to profitability, which positively influenced valuation metrics despite high volatility in share price. The substantial improvement in EPS by 2024 likely contributed to a market re-rating, reducing historic overvaluation signaled by very high P/E ratios. The share price volatility may reflect market adjustments to these financial improvements or external economic factors. The moderate decline in EPS and share price in the most recent quarters may warrant monitoring for potential future trends.

The share price exhibited significant volatility over the observed periods. Initially, it reached a high point near $300 in late 2021 before experiencing a marked decline through mid-2022, dropping below $145. Subsequently, the share price demonstrated a recovery phase, climbing beyond $260 by early 2024, followed by fluctuations but generally maintaining a level above $215 towards the later periods.

Operating profit per share showed a consistent upward trend across the periods. It began with negative values, indicating operating losses per share, but the magnitude of losses steadily diminished from around -$2.23 to nearly break even by late 2023. From that point, operational profitability improved, turning positive and rising to approximately $2.36 by the last observed quarter, signaling ongoing operational performance improvements.

The price to operating profit ratio (P/OP) data is sparse but reveals a pronounced decrease over the periods it is available. Early on, the ratio reached extremely high levels above 4000, reflecting very low or negative operating profits. As profits turned positive and increased, the P/OP ratio declined significantly to values near 90 by the most recent quarters, suggesting a valuation more reflective of the underlying profits and reduced investor risk perception.

Summary of share price trends:

Initial substantial growth followed by a sharp dip in mid-2022, with recovery and relative stabilization above $215 thereafter.

Summary of operating profit per share trends:

Persistent improvement from significant losses to sustained profitability, indicating enhanced operational efficiency.

Summary of price to operating profit ratio trends:

Extremely high early ratios diminished markedly parallel to profit improvements, indicating increasing alignment between price and profit fundamentals.

Share Price Trend

The share price demonstrated considerable fluctuations over the presented periods. Initially, the price rose from $182.56 to a peak near $299.09 in October 2021, indicating strong market sentiment during this time. Following this peak, a downward trend occurred, with prices falling to around $143.30 by October 2022. Subsequently, the share price showed recovery and moderate growth, reaching approximately $264.32 by January 2024. However, the latter periods experienced some volatility with a modest decline, ending near $215.34 by October 2025.

Sales per Share Development

Sales per share exhibited a consistent upward trajectory throughout the entire timeline. Starting at $16.26, this metric increased steadily in each subsequent period, reaching $35.10 by October 2025. The continuous growth suggests improving underlying revenue performance per share without significant interruptions or reversals.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio showed significant variability aligned with the share price movements. Initially, the ratio increased from 11.23 to a peak of 15.28 in October 2021, reflecting amplified market valuation multiples. Afterwards, a sharp decline followed, reaching lows near 6.14 by October 2025. This decline in P/S ratio, despite rising sales per share, points to stock price corrections or a market reassessment of valuation levels. Periodic rebounds in the ratio indicate intermittent positive investor sentiment but do not sustain long-term elevation.

Overall Interpretations

The data reflects a scenario where the company’s operational performance, as indicated by sales per share, steadily improved throughout. Meanwhile, market valuation signals, expressed through share price and P/S ratio, were more volatile and suggest periods of heightened optimism and skepticism. The peak in share price and P/S ratio around late 2021 contrasts with the subsequent market correction despite continued sales growth, implying external factors or shifts in investor expectations influenced market valuation independently of sales performance.

Share Price Trend

The share price exhibited notable volatility over the analyzed periods. Initially, there was a substantial increase from approximately $183 to nearly $300, peaking around October 2021. Following this peak, the price declined sharply to about $143 by October 2022 before rebounding to a local high of roughly $264 in January 2024. Subsequently, there was a gradual downward trend, with the price declining to approximately $215 by October 2025. Overall, the share price demonstrates cyclic fluctuations with periods of significant gains followed by corrections.

Book Value Per Share (BVPS) Trend

The book value per share showed a consistent upward trajectory throughout the period. Starting at about $11.07, it steadily increased to over $33 by October 2025. This upward trend indicates ongoing accumulation of equity or retained earnings relative to the number of shares outstanding. The steady rise suggests a strengthening balance sheet and improved net asset base supporting the company’s valuation over time.

Price-to-Book Value Ratio (P/BV) Trend

The price-to-book value ratio started at a relatively high multiple of around 16.5, reaching an even higher peak above 20 in mid-2020. Following this, there was a marked decline to a trough of approximately 6.4 by late 2025. This declining multiple reflects either a relative undervaluation of the stock compared to its book value or a normalization from previously elevated valuation levels. Notably, the P/B ratio saw intermediate oscillations, declining steeply after mid-2021 before modest fluctuations from 2022 onwards.

Overall Insights

The data reveals a company with a steadily improving book value, indicating positive internal growth and asset accumulation. However, the market's valuation of the company as reflected by the share price and P/B ratio experienced substantial volatility, likely influenced by external market factors or investor sentiment. The divergence between the steadily increasing book value and fluctuating share price suggests episodes of market reevaluation, oscillating investor confidence, or sector-specific impacts affecting perceived company value relative to its net assets.