Is Workday, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Workday, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 101, an EV to EBITDA ratio of 67.73, and a Price to Book Value of 7.73. In comparison, Cisco Systems, Inc. has a P/E ratio of 23.85 and an EV to EBITDA of 17.61, while Accenture Plc shows a more attractive valuation with a P/E of 21.26 and an EV to EBITDA of 13.98.
Despite a strong performance over the past three years with a return of 53.33%, Workday's year-to-date return of -9.51% and one-year return of -6.02% starkly contrast with the S&P 500's returns of 12.22% and 17.14%, respectively, reinforcing the notion that the stock is currently overvalued.