Is Dayforce, Inc. overvalued or undervalued?

As of 15 August 2025, the valuation grade for Dayforce, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, given its P/E ratio of 138, which is higher than the peer average of 125.57, and an EV to EBITDA ratio of 27.79, which also exceeds the industry benchmark. Additionally, the PEG ratio stands at 5.21, suggesting that the stock may not be fully reflecting its growth potential relative to its price.
In comparison with peers, Manhattan Associates, Inc. has a P/E of 59.33 and an EV to EBITDA of 46.19, while Jack Henry & Associates, Inc. shows a very attractive valuation with a P/E of 36.61 and an EV to EBITDA of 21.45. Despite Dayforce's attractive valuation grade, its recent stock performance has lagged behind the S&P 500, with a 3-year return of 16.98% compared to the S&P 500's 70.41%, highlighting potential concerns about its growth trajectory.