Workday Inc. (NASDAQ:WDAY)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio is available from January 2022 onwards and shows a notable spike initially, peaking at 2418.34 in January 2022 and then declining to 1957.29 in April 2022. After this sharp drop, the ratio continues to decrease significantly through to January 2024, reaching 43.12. Subsequently, the ratio exhibits some volatility but remains at a much lower level compared to the initial peak, ending at 101.34 in October 2024.

Price to Operating Profit (P/OP) Ratio

This ratio commences reporting in October 2023 with an extremely high value of 4065.25, followed by a rapid decline over the subsequent periods. By October 2024, the ratio has significantly decreased to 112.1. This pattern suggests a possible initial overvaluation relative to operating profit that gradually stabilizes over time.

Price to Sales (P/S) Ratio

The Price to Sales ratio is available from October 2019 and demonstrates fluctuations over time. It starts at 10.65 and rises to a peak of 15.28 in January 2022. Following this peak, the ratio declines steadily to a low of 6.19 in January 2024. Afterward, P/S shows minor variations but remains relatively stable between approximately 6.5 and 9.6 through October 2024. This indicates a diminishing price relative to sales after early 2022, suggesting a possible market adjustment or changes in sales performance.

Price to Book Value (P/BV) Ratio

This ratio, with data beginning in April 2019, generally trends downward over the observed periods. Starting at 22.98, it decreases consistently with minor fluctuations to reach values in the range of 6.44 to 9.42 during the later periods, notably declining more sharply from early 2022 onward. This downward trend in P/BV suggests a decreasing valuation relative to book value, potentially reflecting changes in investor sentiment or underlying book value adjustments.

The share price demonstrates notable fluctuations over the observed periods. Initially, the price decreases from 207.91 US$ in April 2019 to a low of 143.3 US$ in October 2022. Subsequently, there is a recovery phase, with the share price rising again to a peak of 264.32 US$ by January 2024, before declining moderately to 221.27 US$ by July 2025. This pattern indicates volatility with an overall recovery after a substantial dip.

Earnings per share (EPS) data exhibit significant variation and periods of negative performance followed by a return to positive figures. EPS was negative from January 2020 through at least April 2023, reaching its most negative point around October 2022 (-1.42 US$). From July 2023 onwards, EPS turns positive, sharply increasing to values above 5 US$ by October 2024 and remaining elevated through April 2025. This transition suggests improving profitability or operational performance in the later years.

The price-to-earnings (P/E) ratio is available partially and shows extreme values during the periods when EPS was low or negative. Notably, in April and July 2021, the ratios are exceptionally high (2418.34 and 1957.29, respectively), reflecting near-zero or small positive earnings that drastically inflate the P/E. As earnings improve from mid-2023 onward, the P/E ratio decreases to more typical levels around 30 to 50 but spikes again near periods of EPS instability, such as in April 2025.

Share Price Trend

Initial decline from April 2019 to October 2022, followed by recovery to early 2024 before a moderate decline towards mid-2025.

Earnings per Share (EPS) Trend

Predominantly negative EPS from 2020 through early 2023, transitioning to strong positive earnings from mid-2023 onwards.

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

Extremely high ratios during low or negative EPS periods, with normalization as EPS improves, exhibiting typical valuation multiples post-2023.

Overall, the data suggest a period of financial struggle or investment phase marked by negative earnings and volatile share prices until 2023, followed by a turnaround with enhanced earnings performance and a more stable valuation environment. The share price gains post-2023 correspond to this profitability improvement, though valuation multiples remain somewhat elevated, reflecting market expectations or remaining uncertainty.

The analyzed financial data reveals several notable trends in the share price and operating profit per share over the given periods.

Share Price

The share price demonstrates considerable fluctuations through the timeline. Initially, it decreased from $207.91 in April 2019 to a low point around $143.30 in October 2022. This decline suggests some period of market uncertainty or company-specific challenges. However, starting from October 2022, the share price began to recover, reaching a peak of $264.32 in January 2024 before experiencing some moderate declines again toward the most recent dates, stabilizing around the low $220s to low $240s range. This overall behavior indicates volatility with a partial rebound in later periods.

Operating Profit Per Share (OPPS)

The operating profit per share initially registers negative values up to the early part of 2023, starting from approximately -$2.16 and improving steadily to positive territory by January 2024. This progression from a loss position to profitability is a significant positive development. It suggests the company was initially experiencing operating difficulties but successfully enhanced its operations over time. By the last points available, OPPS consistently remains positive, showing ongoing improvement and sustainable operating profitability.

Price to Operating Profit Ratio (P/OP)

This ratio is only available starting from the period where operating profit per share turns positive. The P/OP shows extremely high values initially (above 4000), which gradually decreases to more moderate levels in the later periods. Despite the improvement, the ratio remains relatively elevated, indicating that the share price may still be considered high relative to operating earnings. The decline in this ratio over time corresponds with the rise in operating profit per share and can be interpreted as a normalization of market valuation in relation to operating profitability.

In summary, the data presents a scenario where the company started with operating losses and a declining share price, followed by a steady recovery in profitability and share price. The improvement in operating profit per share coupled with a decreasing P/OP ratio suggests strengthening operational performance and a potential revaluation by the market. However, the continued volatility in share price and relatively high valuation multiples imply ongoing investor caution or growth expectations.

The share price demonstrates notable volatility across the observed periods. Initially, it declines from a high of 207.91 US$ in April 2019 to a low near 165.39 US$ in October 2019. Following this, a significant upward movement peaks at approximately 299.09 US$ in October 2021. Subsequently, the share price experiences a downward trend reducing to around 143.3 US$ by October 2022. In the most recent periods, the price shows a recovery pattern, climbing back to the range of approximately 260 US$ before a slight decline towards the last recorded value of 221.27 US$ in July 2025.

Sales per share exhibit a consistent and steady upward trajectory over time. Starting at 15.63 US$ in April 2020, this metric increases incrementally each quarter, reaching 33.55 US$ by July 2025. This continuous growth suggests consistent improvement in revenue generation relative to the share count.

The price-to-sales (P/S) ratio exhibits considerable fluctuation across the periods. It begins at 10.65 in April 2020 and reaches a peak value of 15.28 in January 2022. Following this peak, there is a noticeable downward trend in the ratio, falling to a low of 6.19 by October 2022. After this trough, it gradually recovers but maintains a generally lower range compared to the earlier peak, oscillating between approximately 6.59 and 9.61 in the latest periods. This pattern indicates periods where share price growth outpaced sales growth and vice versa, reflecting changing market valuations relative to revenue generation.

Share Price

Exhibited volatility with an initial decline, a peak around late 2021, a subsequent trough in late 2022, and a partial recovery thereafter.

Sales per Share

Consistently increased at a steady pace over the entire timeframe, indicating solid revenue growth on a per-share basis.

Price-to-Sales Ratio

Displayed significant variability, peaking in early 2022 followed by a decline, then stabilizing at lower levels, which suggests market revaluation relative to sales performance during the periods.

The share price exhibited notable fluctuations over the analyzed periods. Initially, from April 2019 to January 2020, the price showed a declining trend, falling from $207.91 to $166.56. This was followed by a significant rise through mid-2020, peaking at $243.88 in July 2020, despite some volatility in the subsequent quarters. The peak share price of $299.09 occurred in October 2021, after which there was a marked decrease down to $143.30 by October 2022. From early 2023 onward, the share price tended to recover, reaching $264.32 in January 2024, before experiencing modest declines and fluctuations, settling around the low $220s by July 2025.

The book value per share (BVPS) demonstrated a consistent upward trajectory throughout the entire period. Starting at $9.05 in April 2019, the BVPS increased steadily each quarter, reaching $34.35 by July 2025. This consistent growth indicates a continuous accumulation of net assets on a per-share basis, suggesting strengthening of the company's intrinsic value over time.

The price-to-book-value (P/BV) ratio displayed a clear declining trend overall, indicating changing market perceptions relative to the company's book value. In early 2019, the ratio was extremely elevated at nearly 23, suggesting a high market premium over book value. This ratio progressively decreased, with notable dips to single digits after April 2022, reaching a low of approximately 6.44 by July 2025. The decline in this ratio, particularly during periods when share price fell or grew slower than BVPS, signals that market valuations have become more conservative in relation to the company’s book value.

Summary of trends and insights:

The share price volatility contrasts with the steady increase in book value per share, reflecting greater stability in the firm’s asset base compared to market sentiment.

The peak share prices between mid-2020 and late 2021 correlate with elevated P/B ratios, indicative of strong investor optimism during that interval.

The subsequent reduction in share price and sharp decline in P/B ratio after 2021 suggests a revaluation of the company towards a more moderate market premium over book value.

The continuing growth in BVPS throughout the entire timeframe underscores improving fundamentals, despite shorter-term share price corrections.

Overall, the data indicates a maturing market perception of value, with an emphasis on growing intrinsic worth rather than purely market-driven price inflation.