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.
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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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