Is Western Digital Corp. overvalued or undervalued?

As of 22 August 2025, the valuation grade for Western Digital Corp. has moved from very attractive to attractive, indicating a slight shift in perception. Based on the current metrics, the company appears to be undervalued. The P/E ratio stands at 7, significantly lower than the industry average, while the EV to EBITDA ratio is 6.01, and the PEG ratio is an exceptionally low 0.02, suggesting strong growth potential relative to its price.
In comparison to peers, Western Digital's P/E ratio of 7 is notably lower than Seagate Technology's 26.40 and NetApp's 20.27, highlighting its relative undervaluation in the market. Additionally, the company's strong return on equity (ROE) of 52.58% and return on capital employed (ROCE) of 40.30% further support the notion of its solid financial health. Over the past year, Western Digital has outperformed the S&P 500 with a return of 116.01% compared to the index's 17.14%, reinforcing its attractiveness as an investment opportunity.