Paylocity Holding Corporation (PCTY) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Paylocity Holding Corporation $160, price $144, upside +11.6%, quality 69 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $95.10 – $305.75 · fair‑value band $112.20 – $208.36 · the $143.58 price screens below the $160.28 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 24, 2026.
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Paylocity Holding Corporation provides cloud-based human capital management, payroll software, and spend management solutions for the workforce in the United States.
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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.
Stock analysis
Paylocity Holding Corporation (PCTY) currently trades at $143.58, while our model-based Fair Value estimate is $160.28, implying the stock looks roughly 10.4% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $168.39 per share, and 10 of the 24 models we run sit above the $143.58 price.
Bear case: the Economic Profit group reads lowest at $35.67, and 14 of the 24 models stay below the price. Evidence for this calculation is medium.
Scenario range: $112.20 (bear) to $208.36 (bull), the price of $143.58 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 69/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Paylocity Holding Corporation 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.
Key figures
Market cap $8.1B · P/E ratio 30.7 · P/S ratio 4.37 · EPS (TTM) $4.68 · Net margin 14.2% · Return on equity 21.6% · Return on assets (EBIT) 4.3% · Operating margin 31.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (medium confidence).
What moves the price
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 13% below its 52-week high and 51% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −13% fair-value upside, at 12%, PCTY screens cheaper than that median.
Fair Value models
Bear $112.20Fair Value $160.28Bull $208.36
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($4.68 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.Evidence ⓘEvidence = 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.
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
+13.7%
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.
+23.2%
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.
+23.2%
Start year 2020 (pandemic). Over 10 years: +26.4% 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.
+30.2%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘ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. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+33.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+33.1%
Dividend (yield on the price)0.0%
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.12% → 19%
2025 sits 61% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what 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).
+8.9%
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.
+7.9%
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 +6.4% a year for the price and +5.3% 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.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Compare Paylocity Holding Corporation with another stock
Price, fair value, quality and upside side by side.
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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 · 710 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score69 · Top 25%
Fair Value upside+12% · Above median
Profitability
Return on equity (TTM)22% · Top 25%
Return on assets4% · Above median
Net margin (TTM)15% · Top 25%
Operating margin (TTM)31% · Top 25%
Growth and dividend
Revenue growth11% · Above median
Balance sheet
Debt / equity0.13× · Above median
Valuation Multiplesvs Software - Application median · lower = cheaper
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Is Paylocity Holding Corporation (PCTY) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $160.28 versus a price of $143.58, about +12% upside (undervalued).
What is the fair value of PCTY?
Our model-based fair value for Paylocity Holding Corporation is $160.28 (as of Sep 24, 2026), built from audited fundamentals. The current price: $143.58.
What is the quality score of PCTY?
Paylocity Holding Corporation has a Quality Score of 69/100. 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 Paylocity Holding Corporation (PCTY)?
Our model-based price target is the fair value of $160.28 (as of Sep 24, 2026) from 24 valuation models. Cautious scenario $112.20, optimistic scenario $208.36. It is a calculation from audited fundamentals, not an analyst target.
What is the Paylocity Holding Corporation stock forecast for 2026?
Our models put fair value at $160.28, about +12% upside versus a price of $143.58 (undervalued). Cautious scenario $112.20, optimistic scenario $208.36. The calculation is refreshed regularly with new filings.
What is the revenue of Paylocity Holding Corporation (PCTY)?
Paylocity Holding Corporation reported trailing-twelve-month revenue of about $1.7B (latest available figure, as of Sep 24, 2026).
What growth is priced into Paylocity Holding Corporation (PCTY)?
For today's price to be fair in a discounted-cash-flow model, Paylocity Holding Corporation would have to grow free cash flow by +8.9 % 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 +23.2 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of PCTY use?
Our models discount Paylocity Holding Corporation at 8.6 %: a base by market capitalisation (mid), damped by beta 0.52, 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 Paylocity Holding Corporation that is +8.9 % per year a year over ten years, using the same discount rate (8.6 %) and the same formula as our fair value.
How much growth has Paylocity Holding Corporation (PCTY) delivered so far?
Over the past 5 years revenue at Paylocity Holding Corporation grew +23.2 % a year. The price currently implies +8.9 % per year free-cash-flow growth a 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 Paylocity Holding Corporation (PCTY) growing?
The median revenue growth in the sector is +8.2 % a year. That is the yardstick for the growth priced into Paylocity Holding Corporation (+8.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Paylocity Holding Corporation (PCTY)?
The free-cash-flow yield on the price is 4.22 %: that much free cash flow Paylocity Holding Corporation 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 Paylocity Holding Corporation (PCTY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Paylocity Holding Corporation it is $160.28 per share (as of Sep 24, 2026), against a price of $143.58. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Paylocity Holding Corporation stock overvalued or undervalued in 2026?
As of Sep 24, 2026, PCTY trades below its calculated fair value: price $143.58, fair value $160.28, a gap of about +12% (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 PCTY?
No. The price is what the market pays today ($143.58); the fair value is what the company's own numbers justify ($160.28). For Paylocity Holding Corporation the two are $16.70 per share apart. That gap is exactly why we show both numbers side by side.
How much is Paylocity Holding Corporation worth?
The market values Paylocity Holding Corporation at about $8.1B (market capitalisation, as of Sep 24, 2026). Per share that is $143.58; our models calculate a fair value of $160.28 per share.
What do the bullish and bearish scenarios say about PCTY?
Our models span a range for Paylocity Holding Corporation: cautious scenario $112.20, base $160.28, optimistic $208.36 per share (as of Sep 24, 2026, price $143.58). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PCTY?
Paylocity Holding Corporation trades at a price-to-earnings ratio of 30.7 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $160.28 is built from several models across several years. Other multiples: PEG 1.0, P/B 6.6, P/S 4.7, EV/EBITDA 19.3.
What is the PEG ratio of PCTY?
The PEG ratio of Paylocity Holding Corporation is 0.99 (P/E divided by earnings growth, as of Sep 24, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Paylocity Holding Corporation (PCTY)?
Balance-sheet figures for Paylocity Holding Corporation (as of Sep 24, 2026): return on equity 21.6%, debt of 0.13 per unit of equity. They feed the Quality Score of 69/100, which measures business quality independently of the share price.
How far is PCTY from its 52-week high?
Paylocity Holding Corporation trades at $143.58, about 13% below its 52-week high of $165.67 and 51% above the low of $95.10 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $160.28 is for.
Which stocks are comparable to Paylocity Holding Corporation?
From the same area (Technology) we also value SAP SE, Shopify Inc, Uber Technologies, Inc, Salesforce, 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 Paylocity Holding Corporation stock attractive at the current price?
The data as of Sep 24, 2026: price $143.58, calculated fair value $160.28 (+12%), Quality Score 69/100, from 24 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 PCTY calculated?
We run Paylocity Holding Corporation through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $160.28, 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 14.1 % above its aggregate fair value. Paylocity Holding Corporation currently trades 12 % 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 Paylocity Holding Corporation (PCTY)?
The closing price on Sep 23, 2026 was $143.58. Our model-based fair value is $160.28, about +12% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Paylocity Holding Corporation right now?
A fairly wide model range ($112.20 to $208.36) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Key figures of Paylocity Holding Corporation
How large is the market capitalisation of Paylocity Holding Corporation (PCTY)?
The market capitalisation of Paylocity Holding Corporation is $8.1B. 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 Paylocity Holding Corporation (PCTY)?
The price-to-sales ratio of Paylocity Holding Corporation is 4.37 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Paylocity Holding Corporation (PCTY)?
Earnings per share at Paylocity Holding Corporation are $4.68 (price ÷ EPS = P/E 30.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Paylocity Holding Corporation (PCTY)?
The net margin of Paylocity Holding Corporation is 14.2% (fiscal year 2025). 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 Paylocity Holding Corporation (PCTY)?
The return on equity (ROE) of Paylocity Holding Corporation is 21.6% (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 Paylocity Holding Corporation (PCTY)?
On an EBIT basis the return on assets of Paylocity Holding Corporation is 4.3% (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 Paylocity Holding Corporation (PCTY)?
The operating margin of Paylocity Holding Corporation is 31.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Paylocity Holding Corporation (PCTY)?
Revenue at Paylocity Holding Corporation is growing +10.5% versus a year earlier (3y avg +23.2%). 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 Paylocity Holding Corporation (PCTY)?
Earnings per share at Paylocity Holding Corporation are growing +27.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Paylocity Holding Corporation (PCTY) hold?
Paylocity Holding Corporation holds more cash than debt, $180M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Some data
Sep 24, 2026