PAYC Fair Value Estimate
$272.90117.5% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Paycom Software Inc
Exchange: NYSESector: TechnologyIndustry: Software - Application
For over 25 years, Paycom Software, Inc. has simplified business and employees’ lives through easy-to-use HR and payroll technology to empower transparency through direct access to their data. From onboarding and benefits enrollment to talent management and more, Paycom’s employee-first technology leverages full-solution automation to streamline processes, drive efficiencies and give employees power over their own HR information, all in a single app. Paycom’s single database combines all HR and payroll data in one place, providing a seamless and accurate experience without the errors and inefficiencies associated with integrating multiple systems. Recognized globally for its technology and workplace culture, Paycom serves businesses of all sizes in the U.S. and internationally.
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Trading 117% below its estimated fair value of $272.90.
Current Price
$125.50
-3.78%GoodMoat Value
$272.90
117.5% undervaluedProfile
Valuation (TTM)
Market Cap$7.06B
P/E15.58
EV$6.84B
P/B4.08
Shares Out56.27M
P/Sales3.44
Revenue$2.05B
EV/EBITDA8.49
Paycom Software Inc (PAYC) Valuation
PAYC Valuation Metrics
FCF$408.10M
FCF Growth Rate20.80%
EPS Growth (CAGR)16.58%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →PAYC Valuation & Fair Value Analysis
Paycom Software Inc (PAYC) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Paycom Software Inc is $272.90. The current stock price is $125.50, suggesting the stock is 117.5% undervalued.
The price-to-earnings (P/E) ratio is 15.58. Price-to-book ratio is 4.08. Price-to-sales ratio is 3.44. Enterprise value to EBITDA is 8.49. PEG ratio is 7.90.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Paycom Software Inc's intrinsic value.