Discounted Cash Flow (DCF) Analysis Unlevered

Workday, Inc. (WDAY)

$190.7

+0.06 (+0.03%)

All numbers are in Millions, Currency in USD

Stock DCF: -87.49 | 190.7 | overvalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	2,822.18	3,627.21	4,318	5,138.80	6,215.82	7,576.10	9,234.08	11,254.89	13,717.95	16,720.02
Revenue (%)
EBITDA	-165.43	-147.48	87.33	376.51	104.41	16.68	20.33	24.78	30.21	36.82
EBITDA (%)
EBIT	-363.54	-423.76	-206.33	32.78	-259.95	-498.31	-607.36	-740.28	-902.28	-1,099.74
EBIT (%)
Depreciation	198.11	276.28	293.66	343.72	364.36	514.99	627.69	765.06	932.49	1,136.56
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	1,778.42	1,944.57	3,535.65	3,644.16	6,121.39	5,574.56	6,794.51	8,281.44	10,093.77	12,302.72
Total Cash (%)
Account Receivables	704.68	877.58	1,032.48	1,242.55	1,570.09	1,856.36	2,262.61	2,757.77	3,361.28	4,096.88
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	29.09	57.56	75.60	55.49	153.75	120.03	146.30	178.32	217.34	264.90
Accounts Payable (%)
Capital Expenditure	-181.18	-99.31	-256.33	-272.27	-359.55	-396.64	-483.44	-589.24	-718.19	-875.36
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 190.7
Beta	1.259
Diluted Shares Outstanding	254.82
Cost of Debt
Tax Rate	-41.08
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.548
Total Debt	3,249.08
Total Equity	48,593.98
Total Capital	51,843.06
Debt Weighting	6.27
Equity Weighting	93.73
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	2,822.18	3,627.21	4,318	5,138.80	6,215.82	7,576.10	9,234.08	11,254.89	13,717.95	16,720.02
EBITDA	-165.43	-147.48	87.33	376.51	104.41	16.68	20.33	24.78	30.21	36.82
EBIT	-363.54	-423.76	-206.33	32.78	-259.95	-498.31	-607.36	-740.28	-902.28	-1,099.74
Tax Rate	1.30%	0.37%	-2.65%	-81.52%	-41.08%	-24.72%	-24.72%	-24.72%	-24.72%	-24.72%
EBIAT	-358.83	-422.20	-211.80	59.51	-366.75	-621.48	-757.49	-923.26	-1,125.31	-1,371.57
Depreciation	198.11	276.28	293.66	343.72	364.36	514.99	627.69	765.06	932.49	1,136.56
Accounts Receivable	-	-172.90	-154.91	-210.06	-327.54	-286.27	-406.25	-495.16	-603.52	-735.59
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	28.46	18.04	-20.11	98.26	-33.72	26.27	32.02	39.02	47.56
Capital Expenditure	-181.18	-99.31	-256.33	-272.27	-359.55	-396.64	-483.44	-589.24	-718.19	-875.36
UFCF	-341.90	-389.67	-311.34	-99.21	-591.22	-823.12	-993.22	-1,210.57	-1,475.50	-1,798.40
WACC
PV UFCF						-753.36	-832	-928.13	-1,035.37	-1,155
SUM PV UFCF										-4,703.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.26
Free cash flow (t + 1)	-1,834.37
Terminal Value	-25,266.79
Present Value of Terminal Value	-16,227.22

Intrinsic Value

Enterprise Value	-20,931.07
Net Debt	1,362.77
Equity Value	-22,293.83
Shares Outstanding	254.82
Equity Value Per Share	-87.49