Is Workday, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Workday, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its valuation. The company is currently considered overvalued, supported by a P/E ratio of 101, a Price to Book Value of 7.73, and an EV to EBITDA of 67.73. In comparison, peers such as Cisco Systems, Inc. and Accenture Plc have P/E ratios of 23.85 and 21.26, respectively, highlighting the stark difference in valuation metrics.
Additionally, Workday's recent stock performance has underperformed against the S&P 500, with a year-to-date return of -9.22% compared to the index's 13.30%. This trend continues over longer periods, with a 5-year return of only 2.09% versus the S&P 500's 91.29%. Overall, these factors suggest that Workday, Inc. is not only overvalued but also struggling to deliver competitive returns relative to broader market benchmarks.