Paycom Software, Inc. (PAYC) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Paycom Software, Inc. stock $298, price $237, upside +25.5%, quality 60 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 9, 2026.
How to read this chart
60‑month range $113.27 – $539.20 · fair‑value band $158.87 – $415.32 · the $237.32 price screens below the $297.82 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 9, 2026.
Follow Paycom Software in your weekly email
Every Wednesday you see whether Paycom Software is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
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.
Show moreShow less
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.
Stock analysis
Paycom Software, Inc. (PAYC) currently trades at $237.32, while our model-based Fair Value estimate is $297.82, implying the stock looks roughly 20% undervalued today.
Show more
Valuation
Bull case: the Growth Earnings group reads highest at a median of $319.48 per share, and 10 of the 26 models we run sit above the $237.32 price.
Bear case: the Dividend Discount group reads lowest at $35.32, and 16 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $158.87 (bear) to $415.32 (bull), the price of $237.32 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Paycom Software, Inc. reported revenue of $2.1B in FY2025 versus $1.1B in FY2021, a compound +18.1%/yr. Reported net income was $453M in FY2025, compounding +23.3%/yr from FY2021.
Key figures
Market cap $10.9B Large · P/E ratio 22.7 · P/S ratio 5.09 · EPS (TTM) $10.46 · Dividend yield 0.6% · Net margin 22.8% · Return on equity 41.1% · Return on assets (EBIT) 9.3% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 85 out of 100 (low confidence).
What moves the price
The share trades about 14% below its 52-week high and 110% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at 10% fair-value upside, at 25%, PAYC screens cheaper than that median.
Fair Value models
Bear$158.87Fair Value $297.82Bull$415.32
Price $237.32 · Upside +25.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($7.68 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors sold shares worth $1.0M and none bought.
SaleTerrell Shane HadlockPresident/Chief Client Officer2,818 shares at $237.82$670,163Aug 28, 2026
SaleRandall PeckChief Operating Officer2× since Dec 5, 2025: 4,692 shares, avg. $152.34$714,791May 18, 2026
SaleRobert D. FosterChief Financial Officer1,300 shares at $162.66$211,458Dec 10, 2025
Plus 6 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+8.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+19.5%
Start year 2020 (pandemic). Over 10 years: +24.8% a year
Revenue growth 14 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+29.1%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis.
+21.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+21.1%
Dividend (yield on the price)0.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.21.2% vs 36.4%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.22% → 28%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+11.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +8.6% a year for the price and +4.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: The single integrated SaaS platform delivers high recurring revenue and solid margins as its main strength, while heavy exposure to payroll volume stands out as the key weakness.
Main risk: Generative AI and automation tools like those in Paycom's own Beti system could cut administrative overhead and employee headcounts at client firms, lowering recurring usage and revenue from its per-employee payroll and HR platform.
Bull case: Paycom could embed its single-database AI more deeply to handle complex compliance and decisions, raising client retention and expanding into new efficiency-driven services despite fewer seats.
Bear case: Widespread adoption of external generative AI for routine HR tasks could commoditize core payroll processing, sharply reducing transaction volumes and eroding the need for Paycom's integrated platform over time.
Paycom runs a single integrated SaaS platform that covers the full employment lifecycle from payroll to HR in one database with direct employee access. This setup delivers high recurring revenue and solid margins yet leaves the business heavily exposed to payroll volume. AI tools now automate routine approvals and decisions across HR processes. Will these features expand usage and stickiness enough to offset any slowdown in core transaction activity?
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 628 stocks
Beats the industry median on 10/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside+25.5% · Above median
Profitability
Return on equity (12 months)41.1% · Top 25%
Return on assets6.0% · Above median
Net margin (12 months)22.8% · Top 25%
Operating margin (12 months)31.7% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)9.8% · Above median
Dividend yield (12 months)0.6% · Below median
Balance sheet
Debt / equity0.02× · Below median
Valuation Multiplesvs Software - Application median · lower = cheaper
P/E (12 months)22.7× · Cheaper than median
P/B6.29× · Priciest 25%
P/S (12 months)5.09× · Pricier than median
Price / free cash flow (fiscal year)26.7× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Paycom Software, Inc. Fair Value". https://www.fairvalue-calculator.com/stock/PAYC
Frequently asked questions
Is Paycom Software, Inc. (PAYC) overvalued or undervalued?
As of Nov 9, 2026, our model estimates a fair value of $297.82 versus a price of $237.32, about +25% upside (undervalued).
What is the fair value of PAYC?
Our model-based fair value for Paycom Software, Inc. is $297.82 (as of Nov 9, 2026), built from audited fundamentals. The current price: $237.32.
What is the quality score of PAYC?
Paycom Software, Inc. has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Paycom Software, Inc. (PAYC)?
Our model-based price target is the fair value of $297.82 (as of Nov 9, 2026) from 26 valuation models. Cautious scenario $158.87, optimistic scenario $415.32. It is a calculation from audited fundamentals, not an analyst target.
What is the Paycom Software, Inc. stock forecast for 2026?
Our models put fair value at $297.82, about +25% upside versus a price of $237.32 (undervalued). Cautious scenario $158.87, optimistic scenario $415.32. The calculation is refreshed regularly with new filings.
What is the revenue of Paycom Software, Inc. (PAYC)?
Paycom Software, Inc. reported trailing-twelve-month revenue of about $2.1B (latest available figure, as of Nov 9, 2026).
Does Paycom Software, Inc. pay a dividend?
Paycom Software, Inc. currently shows a dividend yield of 0.63% relative to its recent price (as of Nov 9, 2026).
How much is the dividend of Paycom Software, Inc. (PAYC) and when is the ex-dividend date?
Paycom Software, Inc. pays a dividend of $1.50 per share a year, a dividend yield of 0.6%. The next ex-dividend date is Nov 23, 2026. The payout ratio is 14.3% of earnings. Free cash flow covers the dividend 6.03 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Paycom Software, Inc. (PAYC)?
For today's price to be fair in a discounted-cash-flow model, Paycom Software, Inc. would have to grow free cash flow by +11.2 % per year for five years (discount rate 8.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +19.5 % per year. As of Nov 9, 2026.
What discount rate (WACC) does the fair value of PAYC use?
Our models discount Paycom Software, Inc. at 8.6 %: a base by market capitalisation (large), damped by beta 0.73, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Paycom Software, Inc. that is +11.2 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.6 %) and the same formula as our fair value.
How much growth has Paycom Software, Inc. (PAYC) delivered so far?
Over the past 5 years revenue at Paycom Software, Inc. grew +19.5 % a year. The price currently implies free-cash-flow growth of +11.2 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Paycom Software, Inc. (PAYC) growing?
The median revenue growth in the sector is +11.5 % a year. That is the yardstick for the growth priced into Paycom Software, Inc. (+11.2 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Paycom Software, Inc. (PAYC)?
The free-cash-flow yield on the price is 3.75 %: that much free cash flow Paycom Software, Inc. produces per unit of market value. When it exceeds the discount rate of our models (8.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Paycom Software, Inc. (PAYC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Paycom Software, Inc. it is $297.82 per share (as of Nov 9, 2026), against a price of $237.32. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Paycom Software, Inc. stock overvalued or undervalued in 2026?
As of Nov 9, 2026, PAYC trades below its calculated fair value: price $237.32, fair value $297.82, a gap of about +25% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PAYC?
No. The price is what the market pays today ($237.32); the fair value is what the company's own numbers justify ($297.82). For Paycom Software, Inc. the two are $60.50 per share apart. That gap is exactly why we show both numbers side by side.
How much is Paycom Software, Inc. worth?
The market values Paycom Software, Inc. at about $10.9B (market capitalisation, as of Nov 9, 2026). Per share that is $237.32; our models calculate a fair value of $297.82 per share.
What do the bullish and bearish scenarios say about PAYC?
Our models span a range for Paycom Software, Inc.: cautious scenario $158.87, base $297.82, optimistic $415.32 per share (as of Nov 9, 2026, price $237.32). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PAYC?
Paycom Software, Inc. trades at a price-to-earnings ratio of 22.7 (as of Nov 9, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $297.82 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 62.7. Other multiples: PEG 1.4, P/B 6.3, P/S 5.1, EV/EBITDA 14.4.
What is the PEG ratio of PAYC?
The PEG ratio of Paycom Software, Inc. is 1.42 (P/E divided by earnings growth, as of Nov 9, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Paycom Software, Inc. (PAYC)?
Balance-sheet figures for Paycom Software, Inc. (as of Nov 9, 2026): return on equity 41.1%, debt of 0.02 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is PAYC from its 52-week high?
Paycom Software, Inc. trades at $237.32, about 14% below its 52-week high of $274.59 and 110% above the low of $113.27 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $297.82 is for.
Which stocks are comparable to Paycom Software, Inc.?
From the same area (Technology) we also value SAP SE, Salesforce, Inc, Shopify Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Paycom Software, Inc. stock attractive at the current price?
The data as of Nov 9, 2026: price $237.32, calculated fair value $297.82 (+25%), Quality Score 60/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PAYC calculated?
We run Paycom Software, Inc. through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $297.82 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Paycom Software, Inc. currently trades 20% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Paycom Software, Inc. (PAYC)?
The closing price on Nov 6, 2026 was $237.32. Our model-based fair value is $297.82, about +25% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Paycom Software, Inc. right now?
The model range is unusually wide ($158.87 to $415.32). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of Paycom Software, Inc. (PAYC) come from?
Earnings per share at Paycom Software, Inc. grew +38.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +25.8 %, EBIT margin +3.5 %, tax rate +0.7 %, residual (interest, one-offs) +5.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Paycom Software, Inc.
How large is the market capitalisation of Paycom Software, Inc. (PAYC)?
The market capitalisation of Paycom Software, Inc. is $10.9B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Paycom Software, Inc. (PAYC)?
The price-to-sales ratio of Paycom Software, Inc. is 5.09 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Paycom Software, Inc. (PAYC)?
Earnings per share at Paycom Software, Inc. are $10.46 (price ÷ EPS = P/E 22.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Paycom Software, Inc. (PAYC)?
The dividend yield of Paycom Software, Inc. is 0.6% (payout 14.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Paycom Software, Inc. (PAYC)?
The net margin of Paycom Software, Inc. is 22.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Paycom Software, Inc. (PAYC)?
The return on equity (ROE) of Paycom Software, Inc. is 41.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Paycom Software, Inc. (PAYC)?
On an EBIT basis the return on assets of Paycom Software, Inc. is 9.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Paycom Software, Inc. (PAYC)?
The operating margin of Paycom Software, Inc. is 31.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Paycom Software, Inc. (PAYC)?
Revenue at Paycom Software, Inc. is growing +9.8% versus a year earlier (3y avg +14.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Paycom Software, Inc. (PAYC)?
Earnings per share at Paycom Software, Inc. are growing +48.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Paycom Software, Inc. (PAYC) hold?
Paycom Software, Inc. holds more cash than debt, $218M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
Free · no account needed
Watch Paycom Software, Inc. in the live analysis
One click puts Paycom Software, Inc. on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 9, 2026