Where Will Workday Stock Be in 5 Years If Silver Lake Doesn't Buy It?
A report of buyout talks gave the software maker its best day in a decade. The five-year case has to work without them.
Overview
Workday (NASDAQ: WDAY) had its best day since 2016 last Thursday. Shares jumped nearly 18% (trading was halted multiple times along the way) after Reuters reported that private equity firm Silver Lake has spent recent months in talks to take the human resources and finance software maker private. The move lifted Workday's market value from about $43 billion to nearly $51 billion.
What nobody has reported is a price, or terms, or any assurance a deal gets done. Neither Workday nor Silver Lake immediately responded to CNBC's request for comment. And reported talks don't always turn into offers.
Details
So the exercise worth doing is valuing the business on its own -- as if no buyer ever shows up.
Source
Originally published at www.fool.com.