The pseudorandom method for time‐of‐flight analysis has the advantage over the conventional method of a greatly improved efficiency, but, according to previous theory, the disadvantage that the time resolution is worse. Here we present an improved theory of pseudorandom modulation. We show that the resolution of this method and the conventional method are identical. This conclusion is in agreement with experimental results. The difference between the previously given and present treatment of the pseudorandom method for time‐of‐flight analysis is discussed. We show that the treatment given previously does not apply to a possible, real experiment, but only to the nonphysical case of an infinitely good time resolution. Second, we show that the additional broadening which was found previously for the pseudorandom method is not inherent to the method, but is due to a nonoptimal choice of the deconvolution function.