Update shared on22 Aug 2025
Fair value Increased 8.10%Dayforce's fair value estimate has increased, primarily driven by a higher future P/E multiple, which suggests growing optimism about its earnings growth prospects, resulting in the consensus analyst price target rising to $72.29.
What's in the News
- Thoma Bravo and Abu Dhabi Investment Authority will acquire Dayforce in a $11.5B go-private deal, with shareholders receiving $70 per share in cash; the transaction is expected to close in early 2026 and is contingent on regulatory and shareholder approvals.
- Dayforce’s common stock will be delisted post-transaction; the company will retain its brand and continue operations under the Dayforce name.
- For Q3 2025, Dayforce guided total revenue of $476–$486M and recurring revenue (excl. float) of $329–$339M, reflecting 12.7%–16.1% GAAP growth; full-year 2025 guidance is $1.935–$1.955B in revenue with recurring revenue (excl. float) of $1.324–$1.344B, up 14.2%–15.9%.
- Dayforce completed repurchasing 1,500,115 shares (0.94% of shares outstanding) for $87.33M under its buyback program.
- The Government of Canada will implement Dayforce’s HR and pay solution, advancing to the final build and testing phase as part of government-wide digital transformation.
Valuation Changes
Summary of Valuation Changes for Dayforce
- The Consensus Analyst Price Target has risen from $66.87 to $72.29.
- The Future P/E for Dayforce has risen from 45.02x to 48.66x.
- The Discount Rate for Dayforce remained effectively unchanged, at 7.19%.
Disclaimer
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