PAYC PE Ratio & Valuation,Is PAYC Overvalued

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 16.90 is considered Undervalued compared with the five-year average of 44.62. The fair price of Paycom Software Inc (PAYC) is between 258.17 to 659.29 according to relative valuation methord. Compared to the current price of 166.61 USD , Paycom Software Inc is Undervalued By 35.47%.

Relative Value

Fair Zone

258.17-659.29

Current Price：166.61

35.47%

Undervalued

16.90

9.48

EV/EBITDA

Paycom Software Inc. (PAYC) has a current EV/EBITDA of 9.48. The 5-year average EV/EBITDA is 26.90. The thresholds are as follows: Strongly Undervalued below -5.10, Undervalued between -5.10 and 10.90, Fairly Valued between 42.90 and 10.90, Overvalued between 42.90 and 58.90, and Strongly Overvalued above 58.90. The current Forward EV/EBITDA of 9.48 falls within the Undervalued range.

12.06

EV/EBIT

Paycom Software Inc. (PAYC) has a current EV/EBIT of 12.06. The 5-year average EV/EBIT is 32.28. The thresholds are as follows: Strongly Undervalued below -4.65, Undervalued between -4.65 and 13.81, Fairly Valued between 50.75 and 13.81, Overvalued between 50.75 and 69.21, and Strongly Overvalued above 69.21. The current Forward EV/EBIT of 12.06 falls within the Undervalued range.

4.19

Paycom Software Inc. (PAYC) has a current PS of 4.19. The 5-year average PS is 11.04. The thresholds are as follows: Strongly Undervalued below -1.50, Undervalued between -1.50 and 4.77, Fairly Valued between 17.31 and 4.77, Overvalued between 17.31 and 23.58, and Strongly Overvalued above 23.58. The current Forward PS of 4.19 falls within the Undervalued range.

14.06

P/OCF

Paycom Software Inc. (PAYC) has a current P/OCF of 14.06. The 5-year average P/OCF is 38.89. The thresholds are as follows: Strongly Undervalued below -5.61, Undervalued between -5.61 and 16.64, Fairly Valued between 61.13 and 16.64, Overvalued between 61.13 and 83.38, and Strongly Overvalued above 83.38. The current Forward P/OCF of 14.06 falls within the Undervalued range.

22.83

P/FCF

Paycom Software Inc. (PAYC) has a current P/FCF of 22.83. The 5-year average P/FCF is 60.53. The thresholds are as follows: Strongly Undervalued below -8.94, Undervalued between -8.94 and 25.80, Fairly Valued between 95.27 and 25.80, Overvalued between 95.27 and 130.01, and Strongly Overvalued above 130.01. The current Forward P/FCF of 22.83 falls within the Undervalued range.

Paycom Software Inc (PAYC) has a current Price-to-Book (P/B) ratio of 5.25. Compared to its 3-year average P/B ratio of 8.69 , the current P/B ratio is approximately -39.57% higher. Relative to its 5-year average P/B ratio of 15.60, the current P/B ratio is about -66.33% higher. Paycom Software Inc (PAYC) has a Forward Free Cash Flow (FCF) yield of approximately 4.31%. Compared to its 3-year average FCF yield of 2.59%, the current FCF yield is approximately 66.34% lower. Relative to its 5-year average FCF yield of 1.89% , the current FCF yield is about 127.75% lower.

5.25

P/B

Median3y

8.69

Median5y

15.60

4.31

FCF Yield

Median3y

2.59

Median5y

1.89

Competitors Valuation Multiple

The average P/S ratio for PAYC's competitors is 7.07, providing a benchmark for relative valuation. Paycom Software Inc Corp (PAYC) exhibits a P/S ratio of 4.19, which is -40.75% above the industry average. Given its robust revenue growth of 9.15%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PAYC decreased by 18.71% 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

-66.29%

61.40 → 20.70

P/E Change

-18.71%

204.97 → 166.61

Mkt Cap Growth

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Frequently Asked Questions

Is Paycom Software Inc (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 258.17 to 659.29 according to relative valuation methord.

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

What is the current P/B ratio for Paycom Software Inc (PAYC) as of Dec 15 2025?

As of Dec 15 2025, Paycom Software Inc (PAYC) has a P/B ratio of 5.25. This indicates that the market values PAYC at 5.25 times its book value.

What is the current FCF Yield for Paycom Software Inc (PAYC) as of Dec 15 2025?

As of Dec 15 2025, Paycom Software Inc (PAYC) has a FCF Yield of 4.31%. This means that for every dollar of Paycom Software Inc’s market capitalization, the company generates 4.31 cents in free cash flow.

What is the current Forward P/E ratio for Paycom Software Inc (PAYC) as of Dec 15 2025?

As of Dec 15 2025, Paycom Software Inc (PAYC) has a Forward P/E ratio of 16.90. This means the market is willing to pay $16.90 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 Dec 15 2025?

As of Dec 15 2025, Paycom Software Inc (PAYC) has a Forward P/S ratio of 4.19. This means the market is valuing PAYC at $4.19 for every dollar of expected revenue over the next 12 months.

PAYC Valuation