In the current market session, Workday Inc. (NASDAQ:WDAY) share price is at $245.70, after a 0.37% decrease. Over the past month, the stock increased by 14.96%, but over the past year, it actually fell by 0.11%. With good short-term performance like this, and questionable long-term performance, long-term shareholders might want to start looking into the company's price-to-earnings ratio.

Comparing Workday P/E Against Its Peers

The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E could indicate that shareholders do not expect the stock to perform better in the future or it could mean that the company is undervalued.

Compared to the aggregate P/E ratio of the 430.06 in the Software industry, Workday Inc. has a lower P/E ratio of 126.47. Shareholders might be inclined to think that the stock might perform worse than it's industry peers. It's also possible that the stock is undervalued.