Is Western Digital Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Western Digital Corp. has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 7, a Price to Book Value of 3.75, and an EV to EBITDA of 6.01, which indicate that the company is priced reasonably compared to its earnings and assets.
In comparison to its peers, Western Digital Corp. has a lower P/E ratio than Seagate Technology Holdings Plc, which stands at 26.40, and is significantly lower than Pure Storage, Inc., which has a P/E ratio of 186.66. Additionally, Western Digital's PEG ratio of 0.02 suggests strong growth potential relative to its valuation. Notably, the company's stock has outperformed the S&P 500 across multiple periods, with a year-to-date return of 180.08% compared to the S&P 500's 13.30%, reinforcing its strong market performance.