WDAY

Workday Inc

TMT


Presented:01/14/2021
Price:$227.33
Cap:$54.56B
Current Price:$244.83
Cap:$65.12B

Presented

Date01/14/2021
Price$227.33
Market Cap$54.56B
Ent Value$49.30B
P/E RatioN/A
Book Value$12.88
Div Yield0%
Shares O/S240.00M
Ave Daily Vol2,108,310
Short Int3.91%

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: Chevron Corp (CVX), Coca-Cola Co/The (KO), Home Depot Inc/The (HD), Lowe’s Cos Inc (LOW), Oracle Corp (ORCL), salesforce.com Inc (CRM), SAP SE (SAP), ServiceNow Inc (NOW), Target Corp (TGT), Walmart Inc (WMT), Workday Inc (WDAY)

Highlights

The presenter is long shares of Workday Inc (WDAY), which provides a cloud-native human capital management (HCM) platform for large enterprises, as well as a financials platform. Over the next two years, the presenter expects WDAY will accelerate billings and revenue growth due to tailwinds including an upcoming renewal cycle, industry-wide digital transformation, and improving unit economics. As revenue accelerates from <20% exiting FY2021 (FY2021 ends January 31, 2021) to the mid-20% range in each of the next two years, the company’s operating leverage should allow FCF to grow in the 30% – 40% range. Using this framework, he reaches a $325 price target by applying a 50x multiple on his $6.50 FY2023 (CY2022) FCF estimate. 

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Idea Discussion

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