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Paycom Software Inc.
PAYC
119.06 (4.15%) 4.94
Industrials
Professional Services
Paycom Software Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company’s HCM solution offers payroll applications comprising better employee transaction interface payroll and payroll tax management payroll card Everyday Paycom pay Client Action Center expense management garnishment administration and GL concierge applications; talent acquisition including applicant tracking background checks on-boarding e-verify and tax credit services; and talent management applications that include employee self-service compensation budgeting performance management position management Paycom learning certification management. The company also offers time and labor management such as time and attendance scheduling time-off requests and labor allocation solutions. Its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks such as approving time-off requests and expense reimbursements; direct data exchange; ask here a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement reporting; report center; and affordable care act applications as well as Clue which securely collects tracks and manages the vaccination and testing data of the workforce; and MyCom is a communications tool that provides organizations with a central place to share information with employees. Paycom Software Inc. was founded in 1998 and is based in Oklahoma City Oklahoma.

Quality Checklist 7/8

5Y Shares Out Change < 0%
ROIC > 10%
Debt/Equity < 1
Current Ratio > 1
Net Margin > 10%
Past Net Income CAGR > 0%
Est. EPS Growth > 5%
Quick Ratio > 1
0.0%of Portfolio

My holdings

Day change:
Total change:
Shares:
Cost basis:
Market cap: $6.33(B)
EV: $5.61(B)
Total Equity: $1.73(B)
Earnings date: May-01-2026
P/E: 14.64
Forward P/E: 11.64
P/FCF: 15.60
P/S: 3.24
P/B: 3.68
EPS: $8.1
EPS (fwd): $10.2
FCF/share: $7.6
Revenue/share: $36.8
Book value/share: $32.4
ROIC: 27.5%
ROA: 11.7%
ROE: 28.5%
Debt/Equity: 0.05
Current Ratio: 1.10
Gross margin: 87.2%
Operating margin: 27.9%
Net margin: 22.1%
Dividend/share: $1.5
Div. yield: 1.26%

PAYC Valuation & Price Targets

Current Price
$119

Favorite Valuation Methods

More Valuation Methods

DCF (simple)
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DCF (exit mult.)
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DDM
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EPS growth
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Revenue growth
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Peter Lynch FV
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Graham No.
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PEvaluation

22% undervalued
Low
$109
Mid
$145
High
$181
Current price
$119
Fair P/E
Margin of safety
EPS
Market Model
ROICRevenue growthFCF MarginShares outstan...Debt/EquityDebt/EBITDA
Economic moat: Medium

EPS Estimates

LowAvgHigh#
FY+19.810.210.720
FY+210.711.312.419
FY+311.312.313.16
FY+412.012.012.01
FY+513.013.013.01

Analyst Price Targets

15% undervalued
Low
$115
Mid
$137
High
$240
Current price
$119

Analyst Recommendations

Strong Buy0
Buy6
Hold15
Sell0
Strong Sell0

2-stage DCF

First Stage Duration: 5 Years
Starting Free Cash Flow
First Stage Growth Rate
LowMidHigh
Terminal Growth Rate
LowMidHigh
Discount Rate

Discounted Cash Flow

Forecast years: 5 Years
Terminal Growth Rate
LowMidHigh
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%

Discounted Cash Flow (exit mult.)

Forecast years: 5 Years
Exit FCF Multiple
LowMidHigh
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%

Dividend Discount Model

Annual Dividend
First Stage Length (Years): 0 Years
First Stage Growth Rate
Final Growth Rate
Discount Rate

EPS Growth

Forecast years: 5 Years
Starting EPS
EPS Growth Rate
LowMidHigh
Final P/E
LowMidHigh
Discount Rate

Revenue Growth Valuation

Forecast Years: 10 Years
Base Revenue
Revenue Growth Rate
LowMidHigh
Final Net Margin
LowMidHigh
Final P/E Ratio
LowMidHigh
Discount Rate

Peter Lynch Fair Value

Earnings Per Share
Growth Rate

Graham Formula

Earnings Per Share
EPS Growth (7-10 years)
Government Bond Rate