Is Dayforce, Inc. overvalued or undervalued?

As of 18 June 2025, Dayforce, Inc. has moved from an attractive to an expensive valuation grade. The company appears to be overvalued based on its current financial metrics. Key ratios include a P/E ratio of 138, an EV to EBITDA of 27.79, and a PEG ratio of 5.21, which are significantly higher than industry averages.
In comparison to peers, Dayforce's P/E ratio is notably higher than AppLovin Corp. at 57.25 and Gen Digital Inc. at 28.71, indicating a premium valuation that may not be justified by its growth prospects. Additionally, the company's return on equity (ROE) stands at a low 2.70%, further supporting the notion of overvaluation. Recent stock performance shows a decline of 21.31% year-to-date, contrasting with a modest 2.44% gain in the S&P 500, which reinforces the concerns regarding its current valuation.