WDAY

Workday Inc - Ordinary Shares - Class A

TMT


Presented:01/27/2020
Price:$183.96
Cap:$42.31B
Current Price:$244.83
Cap:$65.12B

Presented

Date01/27/2020
Price$183.96
Market Cap$42.31B
Ent Value$36.49B
P/E RatioN/A
Book Value$10.08
Div Yield0%
Shares O/S230.00M
Ave Daily Vol1,881,746
Short Int5.64%

Current

Price$244.83
Market Cap$65.12B
Workday, Inc. engages in the development of enterprise cloud applications for finance and human resources. It delivers financial management, human capital management, and analytics applications designed for companies, educational institutions, and government agencies. The company was founded by David A. Duffield and Aneel Bhusri in March 2005 and is headquartered in Pleasanton, CA.

Publicly traded companies mentioned herein: Coupa Software Inc (COUP), Paycom Software Inc (PAYC), ServiceNow Inc (NOW), Workday Inc (WDAY)

Highlights

The presenter is long shares of Workday Inc (WDAY), the SaaS provider of human capital resources (HCR) and financial management tools. In his opinion, WDAY is a best-in-class software company with strong unit economics and a long runway for growth, and expects growth to outpace consensus estimates for the next two years. Shares are trading at ~$185, or ~8x his FY2022 revenue estimate (note: 2020 FYE January 31, 2020), a discount to other top software businesses with comparable unit economics and growth runways valued at 10x – 17x consensus revenue figures two years out. Therefore, the presenter expects WDAY to appreciate to $230 – $240 per share by the end of CY2020 and to compound at 20% – 25% thereafter. 

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Idea Discussion

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