PAYC Relative Valuation
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. If the market price exceeds this fair value range, PAYC is overvalued; if below, it's undervalued.
Historical Valuation
Paycom Software Inc (PAYC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 16.69 is considered Undervalued compared with the five-year average of 45.07. The fair price of Paycom Software Inc (PAYC) is between 233.58 to 644.22 according to relative valuation methord. Compared to the current price of 166.37 USD , Paycom Software Inc is Undervalued By 28.77%.
Relative Value
Fair Zone
233.58-644.22
Current Price：166.37
28.77%
Undervalued
16.85
PE
1Y
3Y
5Y
Trailing
Forward
9.36
EV/EBITDA
Paycom Software Inc. (PAYC) has a current EV/EBITDA of 9.36. The 5-year average EV/EBITDA is 27.19. The thresholds are as follows: Strongly Undervalued below -5.19, Undervalued between -5.19 and 11.00, Fairly Valued between 43.37 and 11.00, Overvalued between 43.37 and 59.56, and Strongly Overvalued above 59.56. The current Forward EV/EBITDA of 9.36 falls within the Undervalued range.
11.90
EV/EBIT
Paycom Software Inc. (PAYC) has a current EV/EBIT of 11.90. The 5-year average EV/EBIT is 32.62. The thresholds are as follows: Strongly Undervalued below -4.77, Undervalued between -4.77 and 13.93, Fairly Valued between 51.31 and 13.93, Overvalued between 51.31 and 70.00, and Strongly Overvalued above 70.00. The current Forward EV/EBIT of 11.90 falls within the Undervalued range.
4.13
PS
Paycom Software Inc. (PAYC) has a current PS of 4.13. The 5-year average PS is 11.15. The thresholds are as follows: Strongly Undervalued below -1.52, Undervalued between -1.52 and 4.82, Fairly Valued between 17.49 and 4.82, Overvalued between 17.49 and 23.83, and Strongly Overvalued above 23.83. The current Forward PS of 4.13 falls within the Undervalued range.
13.89
P/OCF
Paycom Software Inc. (PAYC) has a current P/OCF of 13.89. The 5-year average P/OCF is 39.33. The thresholds are as follows: Strongly Undervalued below -5.89, Undervalued between -5.89 and 16.72, Fairly Valued between 61.95 and 16.72, Overvalued between 61.95 and 84.56, and Strongly Overvalued above 84.56. The current Forward P/OCF of 13.89 falls within the Undervalued range.
22.55
P/FCF
Paycom Software Inc. (PAYC) has a current P/FCF of 22.55. The 5-year average P/FCF is 61.18. The thresholds are as follows: Strongly Undervalued below -9.19, Undervalued between -9.19 and 25.99, Fairly Valued between 96.36 and 25.99, Overvalued between 96.36 and 131.55, and Strongly Overvalued above 131.55. The current Forward P/FCF of 22.55 falls within the Undervalued range.
Paycom Software Inc (PAYC) has a current Price-to-Book (P/B) ratio of 5.19. Compared to its 3-year average P/B ratio of 8.82 , the current P/B ratio is approximately -41.18% higher. Relative to its 5-year average P/B ratio of 15.78, the current P/B ratio is about -67.12% higher. Paycom Software Inc (PAYC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.56%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.87% , the current FCF yield is about -100.00% lower.
5.24
P/B
Median3y
8.82
Median5y
15.78
4.37
FCF Yield
Median3y
2.56
Median5y
1.87
Competitors Valuation Multiple
The average P/S ratio for PAYC's competitors is , providing a benchmark for relative valuation. Paycom Software Inc Corp (PAYC) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 9.15%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PAYC decreased by 18.94% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 16.21 to 22.44.
The secondary factor is the Revenue Growth, contributed 9.15%to the performance.
Overall, the performance of PAYC in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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