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 worth. The company appears to be undervalued, particularly when considering its P/E ratio of 138, which is significantly higher than its peer Manhattan Associates, Inc. at 59.33 and Jack Henry & Associates, Inc. at 36.61. Additionally, Dayforce's EV to EBITDA ratio stands at 27.79, compared to Manhattan's 46.19, further suggesting relative undervaluation among its peers.
While Dayforce's return over the last year is 6.84%, it lags behind the S&P 500's return of 14.08%, and its longer-term performance shows a decline of 24.15% over five and ten years, contrasting sharply with the S&P's substantial gains. This discrepancy in performance, combined with the attractive valuation grade and key ratios, reinforces the conclusion that Dayforce, Inc. is currently undervalued in the market.