Latest Ratios: P/E Ratio 635.1x · EV/EBITDA 37.7x · ROE 0.7%. (2015–2024 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.2B | $11.7B | $10.6B | $9.8B | $15.7B | $15.6B | $10.1B | $3.9B | — | — | — |
| Enterprise Value | $11.8B | $12.3B | $11.3B | $10.6B | $16.5B | $16.2B | $10.5B | $4.4B | — | — | — |
| P/E Ratio → | 635.09 | 660.36 | 191.77 | — | — | — | 128.08 | — | — | — | — |
| P/S Ratio | 6.35 | 6.62 | 7.03 | 7.87 | 15.34 | 18.56 | 12.25 | 5.31 | — | — | — |
| P/B Ratio | 4.40 | 4.58 | 4.44 | 4.65 | 7.05 | 7.45 | 5.36 | 2.43 | — | — | — |
| P/FCF | 65.19 | 67.94 | 101.22 | 257.51 | — | — | — | — | — | — | — |
| P/OCF | 39.77 | 41.45 | 48.47 | 73.99 | 321.95 | — | 199.56 | 414.06 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.99 | 7.47 | 8.53 | 16.13 | 19.19 | 12.78 | 5.92 | — | — | — |
| EV / EBITDA | 37.70 | 39.20 | 42.59 | 168.26 | 393.34 | 271.21 | 81.39 | 38.92 | — | — | — |
| EV / EBIT | 113.67 | 157.35 | 85.63 | — | — | 3169.41 | 157.91 | 77.91 | — | — | — |
| EV / FCF | — | 71.75 | 107.63 | 279.11 | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 46.1% | 46.1% | 42.7% | 38.0% | 37.3% | 40.5% | 44.7% | 42.5% | 35.9% | 36.4% | 40.5% |
| Operating Margin | 5.9% | 5.9% | 8.8% | -2.1% | -3.5% | 0.9% | 8.8% | 7.6% | 7.4% | -1.8% | 5.1% |
| Net Profit Margin | 1.0% | 1.0% | 3.6% | -5.9% | -7.4% | -0.5% | 9.5% | -8.2% | -1.2% | -14.9% | -15.1% |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 0.7% | 0.7% | 2.4% | -3.4% | -3.5% | -0.2% | 4.5% | -4.4% | -0.9% | -9.5% | -11.0% |
| ROA | 0.2% | 0.2% | 0.6% | -0.9% | -1.1% | -0.1% | 1.4% | -1.0% | -0.1% | -1.4% | -1.5% |
| ROIC | 2.5% | 2.5% | 3.3% | -0.6% | -0.9% | 0.2% | 2.5% | 2.0% | 2.0% | -0.4% | 1.3% |
| ROCE | 2.8% | 2.8% | 3.8% | -0.8% | -1.1% | 0.3% | 2.8% | 2.3% | 2.3% | -0.5% | 1.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.48 | 0.48 | 0.52 | 0.59 | 0.53 | 0.34 | 0.38 | 0.41 | 0.99 | 1.14 | 1.20 |
| Debt / EBITDA | 3.93 | 3.93 | 4.68 | 19.86 | 28.02 | 11.94 | 5.53 | 5.95 | 10.25 | 24.77 | 12.60 |
| Net Debt / Equity | — | 0.26 | 0.28 | 0.39 | 0.36 | 0.25 | 0.23 | 0.28 | 0.90 | 1.00 | 1.14 |
| Net Debt / EBITDA | 2.08 | 2.08 | 2.54 | 13.02 | 19.27 | 8.79 | 3.36 | 4.02 | 9.34 | 21.92 | 11.91 |
| Debt / FCF | — | 3.81 | 6.41 | 21.60 | — | — | — | — | — | — | — |
| Interest Coverage | 2.56 | 2.56 | 3.69 | -0.90 | -0.99 | 0.31 | 2.23 | 0.67 | 0.64 | -0.13 | 0.40 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.13 | 1.13 | 1.12 | 1.07 | 1.11 | 1.07 | 1.07 | 1.06 | 1.01 | 1.02 | 1.01 |
| Quick Ratio | 1.13 | 1.13 | 1.12 | 1.07 | 1.11 | 1.07 | 1.07 | 1.06 | 1.01 | 1.02 | 1.01 |
| Cash Ratio | 0.11 | 0.11 | 0.11 | 0.09 | 0.10 | 0.05 | 0.08 | 0.08 | 0.02 | 0.03 | 0.01 |
| Asset Turnover | — | 0.19 | 0.17 | 0.15 | 0.14 | 0.13 | 0.14 | 0.14 | 0.11 | 0.10 | 0.10 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 54.92 | 55.17 | 52.75 | 52.14 | 43.80 | 35.61 | 31.49 | 32.38 | 45.73 | 34.09 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.2% | 0.2% | 0.5% | — | — | — | 0.8% | — | — | — | — |
| FCF Yield | 1.5% | 1.5% | 1.0% | 0.4% | — | — | — | — | — | — | — |
| Buyback Yield | 0.3% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.3% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $160M | $159M | $153M | $150M | $147M | $149M | $114M | $133M | $133M | $133M |
Margin compression from transition
Based on current market data, Dayforce trades at a forward P/E of 25.46 and a P/S of 6.35, suggesting that investors are pricing in significant future margin expansion that remains unproven relative to the company's historical performance and the more profitable profiles of its direct HCM peers.
The valuation appears disconnected from the company's current 5.91% operating margin, implying that the market is valuing the firm as a mature SaaS leader rather than a business in the midst of a costly legacy migration. Investors should monitor whether the growth rate can sustain these multiples, as the current P/FCF of 65.19 suggests that the stock is priced for perfection in a sector where operational execution is increasingly scrutinized.
As reported in recent financial statements, Dayforce's ROIC has struggled to exceed 1.0% over the last ten quarters, indicating that the company is currently failing to generate meaningful returns on its invested capital while it continues to absorb the heavy costs of its platform-wide architectural transition.
The persistent low ROIC suggests that the capital deployed into R&D and platform development has yet to reach an inflection point where it drives superior economic profit. This trend warrants further investigation, as the company's inability to compound returns at a rate exceeding its cost of capital may indicate that the competitive moat is being eroded by the high costs of maintaining legacy infrastructure.
According to quarterly filings, Dayforce's DSO has remained elevated, often exceeding 200 days, which suggests that the company faces significant challenges in optimizing its cash conversion cycle compared to more efficient software-as-a-service peers that typically maintain much tighter control over their accounts receivable and billing processes.
The extended DSO likely reflects the complexity of enterprise-level HCM contracts and the ongoing integration of legacy Bureau clients, which may have less favorable payment terms. This inefficiency in working capital management appears to be a structural drag on liquidity, forcing the company to rely more heavily on external financing or cash reserves to fund its daily operations.
Based on the company's reported figures, the interest coverage ratio has fluctuated between 1.27x and 5.96x over the last ten quarters, indicating that while debt service is currently manageable, the company's thin operating margins leave little room for error should interest rates or operational costs spike unexpectedly.
With a debt-to-equity ratio of 0.46, the balance sheet appears adequately capitalized, yet the volatility in interest coverage suggests that the company's ability to service its debt is highly sensitive to fluctuations in operating income. Investors should monitor the company's reliance on float income, as any decline in interest rates could rapidly tighten the margin of safety for debt obligations.
As disclosed in recent financial reports, the P/E ratio is a fundamentally misapplied metric for Dayforce, as it fails to account for the significant non-cash charges and restructuring costs that currently mask the company's true underlying earning power during its multi-year transition from legacy services.
Analysts should instead focus on EV/EBITDA or adjusted free cash flow, as these metrics better capture the cash-generative potential of the core SaaS business without the distortion of legacy amortization and stock-based compensation. Relying on P/E in this context may lead to a false sense of security regarding the company's profitability, as the reported net income is currently suppressed by the deliberate phase-out of the Bureau segment.
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Quick answers to the most common questions about buying DAY stock.
Dayforce Inc's current P/E ratio is 635.1x. The historical average is 159.9x. This places it at the 100th percentile of its historical range.
Dayforce Inc's current EV/EBITDA is 37.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 50.5x.
Dayforce Inc's return on equity (ROE) is 0.7%. The historical average is -2.5%.
Based on historical data, Dayforce Inc is trading at a P/E of 635.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Dayforce Inc has 46.1% gross margin and 5.9% operating margin.
Dayforce Inc's Debt/EBITDA ratio is 3.9x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.