An independent two-stage DCF analysis by a frontier AI model.
" data-astro-cid-omwdafyi> WDC is emerging from a severe industry downturn. TTM FCF is strong, and we expect 15% annual growth over the next 5 years as pricing for flash memory and high-capacity HDDs remains robust, driven by AI data center needs and constrained supply.
" data-astro-cid-omwdafyi> WDC is emerging from a severe industry downturn. TTM FCF is strong, and we expect 15% annual growth over the next 5 years as pricing for flash memory and high-capacity HDDs remains robust, driven by AI data center needs and constrained supply.
" data-astro-cid-omwdafyi> WDC is emerging from a severe industry downturn. TTM FCF is strong, and we expect 15% annual growth over the next 5 years as pricing for flash memory and high-capacity HDDs remains robust, driven by AI data center needs and constrained supply.
Intrinsic value per share under varying discount rate and terminal growth rate assumptions.
| WACC ↓ / Terminal → | 10.0% | 10.5% | 11.0% | 11.5% | 12.0% |
|---|---|---|---|---|---|
| 10.0% | $10.70 | $10.70 | $10.70 | $10.70 | $10.70 |
| 10.5% | $10.70 | $10.70 | $10.70 | $10.70 | $10.70 |
| 11.0% | $10.70 | $10.70 | $10.70 | $10.70 | $10.70 |
| 11.5% | $10.70 | $10.70 | $10.70 | $10.70 | $10.70 |
| 12.0% | $10.70 | $10.70 | $10.70 | $10.70 | $10.70 |
■ Undervalued vs current price ■ Overvalued vs current price
With the recent spin-off of its flash business into SanDisk, WDC has transformed into a highly profitable pure-play HDD company. The company demonstrated massive growth, pushing operating revenue to 9.520000e+09 and net income to 1.861000e+09 in FY25. This duopoly position offers significant cash flow generation and pricing stability.
Strong momentum driven by a massive recovery in operating revenue to 9.520000e+09, slightly outpacing its main competitor.
Moat is underpinned by massive IP barriers to entry, though offset by high capital intensity and lack of network effects.
Sentiment is highly positive following the flash business spin-off and a return to strong profitability.
Westmount Research. "Western Digital (WDC) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, Compiled by Gemini 3.1, March 18, 2026.
Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.