PAYC Valuation

Paycom Software Inc

Add to Watchlist

Advanced Chart

224.260

-5.59(-2.432%)1D

Overview
Forecast
Valuation
Earnings

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 23.76 is considered Undervalued compared with the five-year average of 49.60. The fair price of Paycom Software Inc (PAYC) is between 244.68 to 654.43 according to relative valuation methord. Compared to the current price of 224.26 USD , Paycom Software Inc is Undervalued By 8.35%.

Relative Value

Fair Zone

244.68-654.43

Current Price：224.26

8.35%

Undervalued

23.76

Trailing

Forward

13.73

EV/EBITDA

Paycom Software Inc. (PAYC) has a current EV/EBITDA of 13.73. The 5-year average EV/EBITDA is 29.98. The thresholds are as follows: Strongly Undervalued below -4.06, Undervalued between -4.06 and 12.96, Fairly Valued between 46.99 and 12.96, Overvalued between 46.99 and 64.01, and Strongly Overvalued above 64.01. The current Forward EV/EBITDA of 13.73 falls within the Historic Trend Line -Fairly Valued range.

17.22

EV/EBIT

Paycom Software Inc. (PAYC) has a current EV/EBIT of 17.22. The 5-year average EV/EBIT is 35.93. The thresholds are as follows: Strongly Undervalued below -3.62, Undervalued between -3.62 and 16.15, Fairly Valued between 55.70 and 16.15, Overvalued between 55.70 and 75.48, and Strongly Overvalued above 75.48. The current Forward EV/EBIT of 17.22 falls within the Historic Trend Line -Fairly Valued range.

6.03

Paycom Software Inc. (PAYC) has a current PS of 6.03. The 5-year average PS is 12.18. The thresholds are as follows: Strongly Undervalued below -1.01, Undervalued between -1.01 and 5.59, Fairly Valued between 18.78 and 5.59, Overvalued between 18.78 and 25.38, and Strongly Overvalued above 25.38. The current Forward PS of 6.03 falls within the Historic Trend Line -Fairly Valued range.

21.95

P/OCF

Paycom Software Inc. (PAYC) has a current P/OCF of 21.95. The 5-year average P/OCF is 43.72. The thresholds are as follows: Strongly Undervalued below -5.40, Undervalued between -5.40 and 19.16, Fairly Valued between 68.27 and 19.16, Overvalued between 68.27 and 92.83, and Strongly Overvalued above 92.83. The current Forward P/OCF of 21.95 falls within the Historic Trend Line -Fairly Valued range.

33.19

P/FCF

Paycom Software Inc. (PAYC) has a current P/FCF of 33.19. The 5-year average P/FCF is 66.99. The thresholds are as follows: Strongly Undervalued below -7.10, Undervalued between -7.10 and 29.94, Fairly Valued between 104.03 and 29.94, Overvalued between 104.03 and 141.08, and Strongly Overvalued above 141.08. The current Forward P/FCF of 33.19 falls within the Historic Trend Line -Fairly Valued range.

Paycom Software Inc (PAYC) has a current Price-to-Book (P/B) ratio of 6.98. Compared to its 3-year average P/B ratio of 10.16 , the current P/B ratio is approximately -31.31% higher. Relative to its 5-year average P/B ratio of 17.45, the current P/B ratio is about -60.00% higher. Paycom Software Inc (PAYC) has a Forward Free Cash Flow (FCF) yield of approximately 2.78%. Compared to its 3-year average FCF yield of 2.30%, the current FCF yield is approximately 20.68% lower. Relative to its 5-year average FCF yield of 1.69% , the current FCF yield is about 64.67% lower.

6.98

P/B

Median3y

10.16

Median5y

17.45

2.78

FCF Yield

Median3y

2.30

Median5y

1.69

Competitors Valuation Multiple

The average P/S ratio for PAYC's competitors is 6.10, providing a benchmark for relative valuation. Paycom Software Inc Corp (PAYC) exhibits a P/S ratio of 6.03, which is -1.08% above the industry average. Given its robust revenue growth of 10.53%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PAYC increased by 41.20% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 15.54 to 18.51.

The secondary factor is the P/E Change, contributed 11.56%to the performance.

Overall, the performance of PAYC in the past 1 year is driven by Margin Expansion. Which is more sustainable.

10.53%

437.51M → 483.60M

Revenue Growth

19.11%

15.54 → 18.51

Margin Expansion

11.56%

27.84 → 31.05

P/E Change

41.20%