PAYC PE Ratio & Valuation, Is PAYC Overvalued

Historical Valuation

Paycom Software Inc (PAYC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.46 is considered Undervalued compared with the five-year average of 41.89. The fair price of Paycom Software Inc (PAYC) is between 391.01 to 710.54 according to relative valuation method. Compared to the current price of 132.54 USD , Paycom Software Inc By Undervalued By 66.1%.

Relative Value

Fair Zone

391.01-710.54

Current Price：132.54

66.1%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Paycom Software Inc (PAYC) has a current Price-to-Book (P/B) ratio of 4.80. Compared to its 3-year average P/B ratio of 8.12, the current P/B ratio is approximately -40.83% higher. Relative to its 5-year average P/B ratio of 14.50, the current P/B ratio is about -66.86% higher. Paycom Software Inc (PAYC) has a Forward Free Cash Flow (FCF) yield of approximately 4.71%. Compared to its 3-year average FCF yield of 2.73%, the current FCF yield is approximately 72.44% lower. Relative to its 5-year average FCF yield of 1.98%, the current FCF yield is about 137.60% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for PAYC competitors is 10.95, providing a benchmark for relative valuation. Paycom Software Inc Corp (PAYC.N) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 10.23%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of PAYC increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of PAYC in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is PAYC currently overvalued or undervalued?

What is Paycom Software Inc (PAYC) fair value?

PAYC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Paycom Software Inc (PAYC) is between 391.01 to 710.54 according to relative valuation method.

How does PAYC's valuation metrics compare to the industry average?

The average P/S ratio for PAYC's competitors is 10.95, providing a benchmark for relative valuation. Paycom Software Inc Corp (PAYC) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 10.23%, this premium appears unsustainable.

What is the current P/B ratio for Paycom Software Inc (PAYC) as of Mar 11 2026?

As of Mar 11 2026, Paycom Software Inc (PAYC) has a P/B ratio of 4.80. This indicates that the market values PAYC at 4.80 times its book value.

What is the current FCF Yield for Paycom Software Inc (PAYC) as of Mar 11 2026?

As of Mar 11 2026, Paycom Software Inc (PAYC) has a FCF Yield of 4.71%. This means that for every dollar of Paycom Software Inc's market capitalization, the company generates 4.71 cents in free cash flow.

What is the current Forward P/E ratio for Paycom Software Inc (PAYC) as of Mar 11 2026?

As of Mar 11 2026, Paycom Software Inc (PAYC) has a Forward P/E ratio of 15.46. This means the market is willing to pay $15.46 for every dollar of Paycom Software Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Paycom Software Inc (PAYC) as of Mar 11 2026?

As of Mar 11 2026, Paycom Software Inc (PAYC) has a Forward P/S ratio of 3.83. This means the market is valuing PAYC at $3.83 for every dollar of expected revenue over the next 12 months.

PAYC Valuation