Dayforce Inc.

NYSE:DAY Stock Report

Market Cap: US$11.4b

Dayforce Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ($73.74) is trading below our estimate of fair value ($96.17)

Significantly Below Fair Value: DAY is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As DAY is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DAY. This is calculated by dividing DAY's market cap by their current revenue.
What is DAY's PS Ratio?
PS Ratio6.7x
SalesUS$1.69b
Market CapUS$11.44b

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 Average5.3x
PAYC Paycom Software
6.3x8.3%US$11.4b
PCTY Paylocity Holding
7.8x9.1%US$11.1b
RHI Robert Half
1.2x4.5%US$7.1b
PYCR Paycor HCM
6.1x10.1%US$3.3b
DAY Dayforce
6.9x11.6%US$11.4b

Price-To-Sales vs Peers: DAY is expensive based on its Price-To-Sales Ratio (6.9x) compared to the peer average (5.3x).

Price to Sales Ratio vs Industry

How does DAY's PS Ratio compare vs other companies in the US Professional Services Industry?

25 CompaniesPrice / SalesEstimated GrowthMarket Cap
CNXC Concentrix
0.3x2.4%US$3.00b
MAN ManpowerGroup
0.1x1.4%US$2.71b
CNDT Conduent
0.2x-2.0%US$657.15m
KELY.A Kelly Services
0.1x4.8%US$505.27m
DAY 6.7xIndustry Avg. 1.4xNo. of Companies25PS01.63.24.86.48+
25 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DAY is expensive based on its Price-To-Sales Ratio (6.9x) compared to the US Professional Services industry average (1.4x).

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 Ratio6.7x
Fair PS Ratio4x

Price-To-Sales vs Fair Ratio: DAY is expensive based on its Price-To-Sales Ratio (6.9x) compared to the estimated Fair Price-To-Sales Ratio (4x).

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
CurrentUS$73.74
US$84.06
+14.0%
9.6%US$95.00US$70.00n/a18
Dec ’25US$79.99
US$82.51
+3.1%
11.0%US$95.00US$65.00n/a18
Nov ’25US$75.23
US$77.53
+3.1%
10.6%US$92.00US$63.00n/a17
Oct ’25US$60.80
US$70.00
+15.1%
13.3%US$90.00US$55.00n/a18
Sep ’25US$57.17
US$69.08
+20.8%
14.6%US$90.00US$55.00n/a17
Aug ’25US$56.56
US$69.08
+22.1%
14.6%US$90.00US$55.00n/a17
Jul ’25US$50.33
US$69.37
+37.8%
16.9%US$87.00US$52.00n/a17
Jun ’25US$49.46
US$72.25
+46.1%
13.0%US$87.00US$58.00n/a16
May ’25US$57.69
US$74.88
+29.8%
13.2%US$95.00US$58.00n/a17
Apr ’25US$64.99
US$77.65
+19.5%
10.7%US$95.00US$62.00n/a17
Mar ’25US$68.25
US$77.65
+13.8%
10.7%US$95.00US$62.00n/a17
Feb ’25US$69.94
US$76.94
+10.0%
11.4%US$95.00US$62.00n/a17
Jan ’25US$67.12
US$76.88
+14.5%
12.1%US$95.00US$62.00US$72.6416
Dec ’24US$70.27
US$76.94
+9.5%
11.7%US$95.00US$62.00US$79.9917
Nov ’24US$61.69
US$76.69
+24.3%
11.1%US$95.00US$62.00US$75.2316
Oct ’24US$67.85
US$77.71
+14.5%
10.1%US$95.00US$65.00US$60.8014
Sep ’24US$73.11
US$78.33
+7.1%
10.2%US$95.00US$65.00US$57.1715
Aug ’24US$70.46
US$77.71
+10.3%
11.1%US$95.00US$65.00US$56.5614
Jul ’24US$66.97
US$76.86
+14.8%
11.2%US$95.00US$65.00US$50.3314
Jun ’24US$62.42
US$76.86
+23.1%
11.2%US$95.00US$65.00US$49.4614
May ’24US$65.18
US$83.43
+28.0%
11.0%US$105.00US$70.00US$57.6914
Apr ’24US$73.22
US$84.14
+14.9%
11.1%US$105.00US$70.00US$64.9914
Mar ’24US$72.02
US$84.14
+16.8%
11.1%US$105.00US$70.00US$68.2514
Feb ’24US$75.76
US$74.86
-1.2%
11.5%US$90.00US$60.00US$69.9414
Jan ’24US$64.15
US$73.86
+15.1%
10.7%US$90.00US$60.00US$67.1214

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/06 21:48
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Dayforce Inc. is covered by 35 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mark MarconBaird
Raimo LenschowBarclays
Keith BachmanBMO Capital Markets Equity Research