PAYC Valuation

Paycom Software Inc

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164.220

-0.44(-0.267%)1D

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 16.71 is considered Undervalued compared with the five-year average of 46.14. The fair price of Paycom Software Inc (PAYC) is between 250.52 to 664.23 according to relative valuation methord. Compared to the current price of 164.66 USD , Paycom Software Inc is Undervalued By 34.27%.

Relative Value

Fair Zone

250.52-664.23

Current Price：164.66

34.27%

Undervalued

16.71

Trailing

Forward

9.49

EV/EBITDA

Paycom Software Inc. (PAYC) has a current EV/EBITDA of 9.49. The 5-year average EV/EBITDA is 28.08. The thresholds are as follows: Strongly Undervalued below -4.93, Undervalued between -4.93 and 11.58, Fairly Valued between 44.58 and 11.58, Overvalued between 44.58 and 61.08, and Strongly Overvalued above 61.08. The current Forward EV/EBITDA of 9.49 falls within the Undervalued range.

12.07

EV/EBIT

Paycom Software Inc. (PAYC) has a current EV/EBIT of 12.07. The 5-year average EV/EBIT is 33.65. The thresholds are as follows: Strongly Undervalued below -4.49, Undervalued between -4.49 and 14.58, Fairly Valued between 52.73 and 14.58, Overvalued between 52.73 and 71.80, and Strongly Overvalued above 71.80. The current Forward EV/EBIT of 12.07 falls within the Undervalued range.

164.66

Paycom Software Inc. (PAYC) has a current PS of 164.66. The 5-year average PS is 13.27. The thresholds are as follows: Strongly Undervalued below -22.98, Undervalued between -22.98 and -4.86, Fairly Valued between 31.39 and -4.86, Overvalued between 31.39 and 49.51, and Strongly Overvalued above 49.51. The current Forward PS of 164.66 falls within the Strongly Overvalued range.

14.19

P/OCF

Paycom Software Inc. (PAYC) has a current P/OCF of 14.19. The 5-year average P/OCF is 40.68. The thresholds are as follows: Strongly Undervalued below -5.79, Undervalued between -5.79 and 17.44, Fairly Valued between 63.92 and 17.44, Overvalued between 63.92 and 87.16, and Strongly Overvalued above 87.16. The current Forward P/OCF of 14.19 falls within the Undervalued range.

23.44

P/FCF

Paycom Software Inc. (PAYC) has a current P/FCF of 23.44. The 5-year average P/FCF is 63.14. The thresholds are as follows: Strongly Undervalued below -8.73, Undervalued between -8.73 and 27.21, Fairly Valued between 99.08 and 27.21, Overvalued between 99.08 and 135.02, and Strongly Overvalued above 135.02. The current Forward P/FCF of 23.44 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 9.05 , the current P/B ratio is approximately -42.64% higher. Relative to its 5-year average P/B ratio of 16.12, the current P/B ratio is about -67.80% 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 2.36%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.75% , the current FCF yield is about -100.00% lower.

5.19

P/B

Median3y

9.05

Median5y

16.12

0.00

FCF Yield

Median3y

2.36

Median5y

1.75

Competitors Valuation Multiple

The average P/S ratio for PAYC's competitors is 139.74, providing a benchmark for relative valuation. Paycom Software Inc Corp (PAYC) exhibits a P/S ratio of 164.66, which is 17.83% 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

Market capitalization of PAYC decreased by 29.00% 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.

9.15%

451.93M → 493.30M

Revenue Growth

38.43%

16.21 → 22.44

Margin Expansion

-76.58%

87.36 → 20.46

P/E Change

-29.00%