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Home/News Feed/Western Digital remains a Sell despite strong operations and cash-positive balance sheet due to high valuation risks.
WDC
$447.09
+$5.73 +1.30%

Western Digital remains a Sell despite strong operations and cash-positive balance sheet due to high valuation risks.

Analyst Insights
07 Aug 2026
Seeking Alpha
View Source
Bearish
Western Digital remains a Sell despite strong operations and cash-positive balance sheet due to high valuation risks.

Western Digital (WDC) is still rated as a Sell despite showing operational strength and achieving a net cash-positive balance sheet for the first time recently. The company's valuation is considered stretched, trading at a high non-GAAP P/E of 66.17 and EV/EBITDA of 47.75, which is significantly above peers like Sandisk and Dell. Although margins expanded recently to 54.4%, this growth is seen as unsustainable with slowing growth and margin gains, and limited pricing power. The market currently prices WDC as a long-term growth stock, but cyclical risks and normalization of capital expenditures pose threats to its current valuation and future performance.

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