Dayforce Valuation

Is DAY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DAY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DAY (CA$71.93) is trading above our estimate of fair value (CA$60.74)

Significantly Below Fair Value: DAY is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DAY?

Other financial metrics that can be useful for relative valuation.

DAY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.6x
Enterprise Value/EBITDA37.3x
PEG Ratio4.2x

Price to Sales Ratio vs Peers

How does DAY's PS Ratio compare to its peers?

The above table shows the PS ratio for DAY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.3x
EFN Element Fleet Management
4.5x-8.1%CA$9.6b
GFL GFL Environmental
2.6x7.0%CA$19.2b
BYD Boyd Group Services
1.3x10.4%CA$5.3b
PAYC Paycom Software
4.7x10.1%US$8.1b
DAY Dayforce
5.2x12.8%CA$8.0b

Price-To-Sales vs Peers: DAY is expensive based on its Price-To-Sales Ratio (5.2x) compared to the peer average (3.3x).


Price to Earnings Ratio vs Industry

How does DAY's PE Ratio compare vs other companies in the North American Professional Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a
No more companies

Price-To-Sales vs Industry: DAY is expensive based on its Price-To-Sales Ratio (5.2x) compared to the North American Professional Services industry average (1.3x).


Price to Sales Ratio vs Fair Ratio

What is DAY's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DAY PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.2x
Fair PS Ratio5x

Price-To-Sales vs Fair Ratio: DAY is expensive based on its Price-To-Sales Ratio (5.2x) compared to the estimated Fair Price-To-Sales Ratio (5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DAY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$71.93
CA$99.37
+38.2%
13.0%CA$119.66CA$79.77n/a16
Jun ’25CA$67.40
CA$98.73
+46.5%
13.0%CA$118.89CA$79.26n/a16
May ’25CA$79.30
CA$103.03
+29.9%
13.2%CA$130.71CA$79.80n/a17
Apr ’25CA$88.42
CA$104.49
+18.2%
10.7%CA$127.85CA$83.44n/a17
Mar ’25CA$92.28
CA$104.49
+13.2%
10.7%CA$127.85CA$83.44n/a17
Feb ’25CA$93.99
CA$103.16
+9.8%
11.4%CA$127.37CA$83.13n/a17
Jan ’25CA$88.87
CA$104.49
+17.6%
12.1%CA$129.13CA$84.27n/a16
Dec ’24CA$94.90
CA$103.84
+9.4%
11.7%CA$128.21CA$83.68n/a17
Nov ’24CA$85.64
CA$106.31
+24.1%
11.1%CA$131.70CA$85.95n/a16
Oct ’24CA$92.23
CA$104.85
+13.7%
10.1%CA$128.17CA$87.69n/a14
Sep ’24CA$99.33
CA$106.56
+7.3%
10.2%CA$129.23CA$88.42n/a15
Aug ’24CA$93.54
CA$102.71
+9.8%
11.1%CA$125.56CA$85.91n/a14
Jul ’24CA$88.85
CA$102.79
+15.7%
11.2%CA$127.05CA$86.93n/a14
Jun ’24CA$83.96
CA$102.79
+22.4%
11.2%CA$127.05CA$86.93CA$67.4014
May ’24CA$88.29
CA$112.95
+27.9%
11.0%CA$142.15CA$94.77CA$79.3014
Apr ’24CA$98.78
CA$112.29
+13.7%
11.1%CA$140.13CA$93.42CA$88.4214
Mar ’24CA$97.76
CA$112.29
+14.9%
11.1%CA$140.13CA$93.42CA$92.2814
Feb ’24CA$100.68
CA$100.10
-0.6%
11.5%CA$120.35CA$80.23CA$93.9914
Jan ’24CA$86.77
CA$98.33
+13.3%
10.7%CA$119.82CA$79.88CA$88.8714
Dec ’23CA$95.61
CA$98.33
+2.8%
10.7%CA$119.82CA$79.88CA$94.9014
Nov ’23CA$89.40
CA$98.57
+10.3%
12.8%CA$122.60CA$76.29CA$85.6414
Oct ’23CA$77.62
CA$95.00
+22.4%
14.3%CA$118.40CA$68.41CA$92.2314
Sep ’23CA$76.12
CA$95.00
+24.8%
14.3%CA$118.40CA$68.41CA$99.3314
Aug ’23CA$70.09
CA$90.31
+28.8%
16.6%CA$109.42CA$61.79CA$93.5413
Jul ’23CA$60.49
CA$93.26
+54.2%
14.7%CA$108.59CA$71.54CA$88.8514
Jun ’23CA$68.07
CA$93.26
+37.0%
14.7%CA$108.59CA$71.54CA$83.9614

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.