Is Dayforce, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Dayforce, Inc. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be undervalued, particularly when considering its P/E ratio of 138, which is significantly higher than the peer average of 125.57 for similar companies in the software products industry. Additionally, Dayforce's EV to EBITDA ratio stands at 27.79, which is lower than Manhattan Associates, Inc. at 46.19, suggesting a more attractive valuation relative to its earnings potential.
In comparison to its peers, Jack Henry & Associates, Inc. has a much lower P/E ratio of 36.61 and an EV to EBITDA of 21.45, reinforcing Dayforce's relatively high valuation metrics. Despite recent performance, where Dayforce's stock has underperformed against the S&P 500 over multiple periods, particularly with a 10-year return of -24.15% compared to the S&P 500's 227.77%, the current valuation suggests that there may be potential for recovery and growth moving forward.