Paycom Software Valuation
| PAYC Stock | USD 152.29 0.28 0.18% |
At this time, the company appears to be undervalued. Paycom Software holds a recent Real Value of $158.79 per share. The prevailing price of the company is $152.29. Our model determines the value of Paycom Software from analyzing the company fundamentals such as Return On Equity of 0.29, operating margin of 0.23 %, and Shares Outstanding of 54.91 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Paycom Software's valuation include:
Price Book 4.8916 | Enterprise Value | Enterprise Value Ebitda 10.3185 | Price Sales 4.2809 | Forward PE 14.9254 |
Undervalued
Today
Please note that Paycom Software's price fluctuation is very steady at this time. Calculation of the real value of Paycom Software is based on 3 months time horizon. Increasing Paycom Software's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Paycom Software is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Paycom Stock. However, Paycom Software's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 152.29 | Real 158.79 | Target 203.35 | Hype 152.05 | Naive 152.98 |
The real value of Paycom Stock, also known as its intrinsic value, is the underlying worth of Paycom Software Company, which is reflected in its stock price. It is based on Paycom Software's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Paycom Software's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Paycom Software helps investors to forecast how Paycom stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Paycom Software more accurately as focusing exclusively on Paycom Software's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Paycom Software's intrinsic value based on its ongoing forecasts of Paycom Software's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Paycom Software's closest peers. If more than one evaluation category is relevant for Paycom Software we suggest using both methods to arrive at a better estimate.
Paycom Software Cash |
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Paycom Revenue by Product
Paycom Software Total Value Analysis
Paycom Software is at this time anticipated to have valuation of 8.07 B with market capitalization of 8.57 B, debt of 83.4 M, and cash on hands of 279.04 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Paycom Software fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
8.07 B | 8.57 B | 83.4 M | 279.04 M |
Paycom Software Investor Information
About 95.0% of the company shares are owned by institutional investors. The book value of Paycom Software was at this time reported as 31.72. The company has Price/Earnings To Growth (PEG) ratio of 0.79. Paycom Software recorded earning per share (EPS) of 8.06. The entity last dividend was issued on the 24th of November 2025. Based on the measurements of operating efficiency obtained from Paycom Software's historical financial statements, Paycom Software is doing better financially today then in previous quarter. It has a moderate chance of reporting better financial numbers in February.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.18 | 0.3 |
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| Total Cash From Operating Activities | 644.7 M | 614 M |
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| Operating Income | 765.9 M | 729.4 M |
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Paycom Software Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Paycom Software has an asset utilization ratio of 32.14 percent. This indicates that the Company is making $0.32 for each dollar of assets. An increasing asset utilization means that Paycom Software is more efficient with each dollar of assets it utilizes for everyday operations.Net Income | First Reported 2012-03-31 | Previous Quarter 89.5 M | Current Value 110.7 M | Quarterly Volatility 45.8 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.66 | 0.74 |
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| Operating Profit Margin | 0.18 | 0.3 |
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For Paycom Software profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Paycom Software to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Paycom Software utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Paycom Software's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Paycom Software over time as well as its relative position and ranking within its peers.
The next projected EPS of Paycom Software is estimated to be 2.47 with future projections ranging from a low of 2.2825 to a high of 2.515. Paycom Software's most recent 12-month trailing earnings per share (EPS TTM) is at 8.06. Please be aware that the consensus of earnings estimates for Paycom Software is based on EPS before non-recurring items and includes expenses related to employee stock options. Paycom Software Earnings Estimation Breakdown
The calculation of Paycom Software's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Paycom Software is estimated to be 2.47 with the future projection ranging from a low of 2.2825 to a high of 2.515. Please be aware that this consensus of annual earnings estimates for Paycom Software is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
2.28 Lowest | Expected EPS | 2.52 Highest |
Paycom Software Earnings Projection Consensus
Suppose the current estimates of Paycom Software's value are higher than the current market price of the Paycom Software stock. In this case, investors may conclude that Paycom Software is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Paycom Software's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2025 | Current EPS (TTM) | |
| 21 | 92.55% | 1.94 | 2.47 | 8.06 |
Paycom Software Earnings per Share Projection vs Actual
Paycom Software Ownership Allocation
Paycom Software owns a total of 54.91 Million outstanding shares. The majority of Paycom Software outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Paycom Software to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Paycom Software. Please pay attention to any change in the institutional holdings of Paycom Software as this could imply that something significant has changed or is about to change at the company. Also note that almost three million eight hundred thirty-two thousand four hundred fourty-seven invesors are currently shorting Paycom Software expressing very little confidence in its future performance.Paycom Software Profitability Analysis
The company reported the previous year's revenue of 1.88 B. Net Income was 502 M with profit before overhead, payroll, taxes, and interest of 1.74 B.Paycom Software Past Distributions to stockholders
| 8th of December 2025 | ||
| 8th of September 2025 | ||
| 9th of June 2025 | ||
| 27th of May 2025 | ||
| 24th of March 2025 | ||
| 9th of December 2024 | ||
| 25th of November 2024 | ||
| 9th of September 2024 | ||
| 10th of June 2024 | ||
| 18th of March 2024 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Paycom Software's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Paycom Software and how it compares across the competition.
About Paycom Software Valuation
The stock valuation mechanism determines Paycom Software's current worth on a weekly basis. Our valuation model uses a comparative analysis of Paycom Software. We calculate exposure to Paycom Software's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Paycom Software's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.8 B | 1.9 B | |
| Pretax Profit Margin | 0.31 | 0.16 | |
| Operating Profit Margin | 0.30 | 0.18 | |
| Net Profit Margin | 0.24 | 0.25 | |
| Gross Profit Margin | 0.74 | 0.66 |
A single share of Paycom Software represents a small ownership stake in the entity. As a stockholder of Paycom, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Paycom Software Dividends Analysis For Valuation
At present, Paycom Software's Dividend Payout Ratio is projected to increase based on the last few years of reporting. . At present, Paycom Software's Retained Earnings Total Equity is projected to increase significantly based on the last few years of reporting. The current year's Earnings Yield is expected to grow to 0.04, whereas Price Earnings To Growth Ratio is forecasted to decline to 0.49.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -76.3 M | -72.5 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.15 | 0.16 | |
| Dividend Paid And Capex Coverage Ratio | 1.73 | 1.56 |
There are various types of dividends Paycom Software can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Paycom shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Paycom Software directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Paycom pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Paycom Software by the value of the dividends paid out.
Paycom Software Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 56.3 M | |
| Quarterly Earnings Growth Y O Y | 0.496 | |
| Forward Price Earnings | 14.9254 |
Paycom Software Current Valuation Indicators
Valuation refers to the process of determining the present value of Paycom Software and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Paycom we look at many different elements of the entity such as Paycom's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Paycom Software, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Paycom Software's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Paycom Software's worth.Complementary Tools for Paycom Stock analysis
When running Paycom Software's price analysis, check to measure Paycom Software's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Paycom Software is operating at the current time. Most of Paycom Software's value examination focuses on studying past and present price action to predict the probability of Paycom Software's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Paycom Software's price. Additionally, you may evaluate how the addition of Paycom Software to your portfolios can decrease your overall portfolio volatility.
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