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Western Digital Corp

WDCAbove value

Held by 2 superinvestors.

Price$435.38
Holders2
Total value$111.3M

SEC 10-K · fundamentals

Business quality

as of 2026-07-03
Revenue growth
+35.7%
Net margin
72.9%
ROE
106.3%
FCF margin
27.2%
Revenue $16.74B → $12.92B · 6y
What makes a business high quality

Valuation · value band

Above fair value

$71/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$435
cheaperpricier

Zero-growth floor

$36

Central IV

$71

Optimistic top

$85

Western Digital Corp (WDC): A conservative value band $36–$85 / sh (zero-growth floor to growth-capped optimistic top); central read about $71. Today’s price sits above that band (price $435 as of 2026-08-24).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

Revenue growth 2% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 10.6% · Zero-growth downside $36

Price as of 2026-08-24 · yahoo · DGS10 4.7% @ 2026-08-21.

Method & numbers

Model cautions

  • Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $53.02 – $84.55 · Greenwald zero-growth $66.77 · zero-growth base $66.77 · reproduction $11.86

Moat Franchise (moat) · terminal value 44% of present value · owner-earnings yield 1% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$35.59 – $43.20 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: 2026, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (ok) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Share-based compensation is left as a real expense (not added back).

Buffett owner-earnings value$54.63 – $66.77 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: 2026, 2024, 2023, 2022, 2021

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (ok); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).

Reproduction value = tangible net assets $4.54B = $11.86 / sh. Tangible net assets = shareholders' equity − goodwill − intangibles, ÷ diluted shares (no R&D history to capitalize).

Moat reading: Franchise test compares earnings power (EPV) against reproduction value on both AV_conservative (tangible + capitalized R&D) and AV_reproduction (conservative + acquired-reset proxy). Both must clear the franchise multiple for a moat signal; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Assumes a narrow moat · competitive-advantage period ≈ 10 years.

Growth value not assessable — No positive growth reinvestment in the matured window, so ROIIC cannot be computed.

Window FY 2026, 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 0% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Owner-earnings DCF: growth g₁ 2% · OE FY 2026, 2024, 2023, 2022, 2021 · Discount band: 9.24%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-08-21). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

2 holders · $111.3M combined · this quarter +1 opened / -0 exited

This quarter1 opened1 trimmed
Holders 2 → 2 · last 7q
  • Ray Dalio
    Value$110.1MWeight (prev→now)0.3% → 0.5% ▲
  • Lee Ainslie
    Value$1.2MWeight (prev→now)New · 0.0%

SEC 13F · notes

Written summary

Western Digital Corp (WDC) is held by 2 of the superinvestors tracked on Compounder, with a combined $111.3M in reported 13F value. The largest position belongs to Ray Dalio, where it makes up 0.5% of the portfolio.

Other notable holders by value include Lee Ainslie (0.0% of its book).

Over the latest quarter, 1 of the tracked filers opened a new position in WDC, 0 added to existing ones, 1 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

Also held by these investors

Investors holding Western Digital Corp (WDC) also commonly hold →

WDC's price is not below its conservative value band. See current strike-zone stocks

Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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