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, and its 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 be priced high relative to its growth potential.
In comparison to its 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 much lower P/E of 36.61 and an EV to EBITDA of 21.45, reinforcing the notion that Dayforce, Inc. is positioned attractively within the software products industry. Despite recent underperformance with a year-to-date return of -6.03% compared to the S&P 500's 13.30%, the long-term 3-year return of 21.85% suggests potential for recovery and growth.