Paylocity Holding (PCTY) Fair Value & Analysis
Technology · US · Market cap $6.7B
Paylocity Holding
PCTY · US
Fair value as of: Jul 19, 2026
From 26 valuation models · updated 21 days ago
Share price +30.6% over the past month.
A solid business, but screening 44% overvalued on our models.
What matters now
- Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range ($63.63 to $161.12) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.
How to read this chart
60‑month range $95.10 – $305.75 · fair‑value band $63.63 – $161.12 · the $150.42 price screens above the $84.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.
Analysis
Paylocity Holding (PCTY) currently trades at $150.42, while our model-based Fair Value estimate is $84.84, implying the stock looks roughly 43.6% overvalued today. The Quality Score stands at 69/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Paylocity Holding generated revenue of $1.7B at a net margin of 14.9%. Revenue grew 10.5% year over year. It earns a return on equity of 21.6%. The balance sheet holds a net cash position of $180M. Fundamentals as of Jul 19, 2026
Our scenario range runs from $63.63 (bear case) to $161.12 (bull case); at $150.42, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 24% below its 52-week high and 62% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at -44%, PCTY screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 26 models by family
Widest divergence: DCF Models ($161.16) versus Asset-Based ($15.44). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 67 · Market factors (momentum, volatility) 53
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Paylocity Holding Corporation provides cloud-based human capital management, payroll software, and spend management solutions for the workforce in the United States.
Full company description
Paylocity Holding Corporation provides cloud-based human capital management, payroll software, and spend management solutions for the workforce in the United States. The company offers payroll solutions comprising payroll and tax services, global payroll, on-demand payment, and garnishments; human resources (HR) solutions consisting of human resources, employee self-service, workflows and documents, HR compliance dashboard, and HR edge; time and attendance, scheduling, and time collection; time and labor solutions, including time and attendance, scheduling, and time collection; and talent solutions, such as recruiting, onboarding, market pay, learning, performance, and compensation. It also provides benefits solutions comprising benefit enrollment and updates, and third-party administrative solutions; employee experiences consisting of community, video, employee voice, recognition and rewards, modern workforce index, data insights, and reporting; and Paylocity for finance solutions, such as headcount planning, expense management, accounts payable automation, corporate cards, and guided procurement. In addition, the company offers implementation and training, client services, and tax and regulatory services. It serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. The company also sells its products through sales representatives. Paylocity Holding Corporation was founded in 1997 and is headquartered in Schaumburg, Illinois.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Paylocity Holding reported revenue of $1.6B in FY2025 versus $636M in FY2021, a compound +25.9%/yr. Reported net income was $227M in FY2025, compounding +33.8%/yr from FY2021.
PCTY screens 44% overvalued. Compare with SAP SE →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Where Does Paylocity Holding (PCTY) Valuation Sit On Strong Earnings And 2027 Guidance?
- Paylocity Q4 Earnings Beat Estimates, Revenues Increase Y/Y
- Paylocity Holding Corporation Q4 2026 Earnings Call Summary
- Paylocity forecasts FY 2027 revenue of $1.88B-$1.90B as Ignite AI rolls out and buybacks continue
Peer Group
Software - Application · 709 stocks
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.
Valuation Multiples vs Software - Application median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SAP SE SAPS | C$12.69 | C$16.26 | +28% |
| Shopify Inc SHOP | C$173.23 | C$20.54 | -88% |
| Uber Technologies, Inc UBER | $72.67 | $51.11 | -30% |
| Salesforce, Inc CRM | $170.77 | $182.10 | +7% |
| ServiceNow, Inc NOW | $107.71 | $33.12 | -69% |
| Cadence Design Systems, Inc CDNS | $384.17 | $80.41 | -79% |
| Snowflake Inc SNOW | $271.87 | $34.04 | -87% |
| Adobe Inc ADBE | $230.61 | $379.48 | +65% |
| Automatic Data Processing, Inc ADP | $241.92 | $177.51 | -27% |
| Intuit Inc INTU | $291.09 | $258.69 | -11% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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