Would You Still Hold Paymentus Stock If It Fell Another 30%?
Paymentus (PAY) stock is down 17.9% in 21 trading days. The recent slide reflects renewed concerns around market volatility and its declining gross margins, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the Paymentus story?
Before judging its downturn reslience, let’s look at where Paymentus stands today.
- Size: Paymentus is a $3.6 Bil company with $1.1 Bil in revenue currently trading at $28.47.
- Fundamentals: Last 12 month revenue growth of 44.3% and operating margin of 5.8%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.45
- Valuation: Paymentus stock is currently trading at P/E multiple of 60.1 and P/EBIT multiple of 54.3
- Has returned (median) 0.7% within a year following sharp dips since 2010. See PAY Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside High valuation – making the stock Fairly Priced. For details, see Buy or Sell PAY Stock
That brings us to the key consideration for investors worried about this fall: how resilient is PAY stock if markets turn south? This is where our downturn resilience framework comes in. Suppose PAY stock falls another 20-30% to $20 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- PAY stock fell 80.8% from a high of $36.42 on 6 July 2021 to $7.00 on 28 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 November 2024
- Since then, the stock increased to a high of $39.84 on 19 May 2025 , and currently trades at $28.47
| PAY | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -80.8% | -25.4% |
| Time to Full Recovery | 693 days | 464 days |
2018 Correction
- PAY stock fell 29.6% from a high of $21.31 on 12 September 2017 to $15.00 on 9 April 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 10 April 2018
| PAY | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -29.6% | -19.8% |
| Time to Full Recovery | 1 days | 120 days |
2008 Global Financial Crisis
- PAY stock fell 93.5% from a high of $49.56 on 30 October 2007 to $3.22 on 4 December 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 March 2011
| PAY | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -93.5% | -56.8% |
| Time to Full Recovery | 820 days | 1,480 days |
Feeling jittery about PAY stock? Consider portfolio approach.
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