Is Workday, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Workday, Inc. moved from expensive to very expensive. The company is currently overvalued, as indicated by its high P/E ratio of 101, a price-to-book value of 7.73, and an EV to EBITDA of 67.73. In comparison, Cisco Systems, Inc. has a P/E of 23.85 and Accenture Plc has a P/E of 21.26, highlighting the significant premium at which Workday is trading relative to its peers.
Despite a strong return of 57.28% over the past three years, Workday's year-to-date performance is down 9.22%, while the S&P 500 has gained 13.30% in the same period, reinforcing the notion that the stock may be overvalued given its recent underperformance against the broader market.