Paycom Software, Inc.

Paycom Software, Inc.

PAYCยทNYSE

$137.79

+1.2%
TechnologySoftware - Application

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. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking, and Microfence, a proprietary Bluetooth. Its HCM solution also offers payroll applications comprising better employee transaction interface, payroll and tax management, Paycom pay, expense management, mileage tracker/fixed and variable rates, garnishment management, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning and content subscriptions, as well as my analytics, which offer employment predictor reporting. In addition, 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/benefits to carrier; COBRA administration; personnel action and performance discussion forms; surveys; and affordable care act applications, as well as Clue, which securely collect, track, and manage the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.

At a Glance

Live Snapshot
Market Cap$7.52B
EPS8.1300
P/E Ratio16.95
Earnings Date08/05/2026
Paycom Software, Inc.

Paycom Software, Inc. Fair Value Envelope

PAYC ยท NYSE

Our analysis suggests that PAYC has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $137.79, this represents a potential HIDDEN relative to our calculated worth for Paycom Software, Inc..

Intrinsic Value
Current Price: $137.79

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$41.0B
+ Cash & Equivalents$370.0M
Firm Value$41.4B
- Debt$152.2M
Equity Value$41.2B
/ Shares Outstanding56,049,402B
DCF Value$736
UNDERVALUED BY 434%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$812.3M
$971.9M
$1.2B
$1.4B
$1.7B
$2.0B
$2.4B
$2.9B
$3.4B
$4.1B
Maintenance CapEx
-$64.8M
-$77.6M
-$92.8M
-$111.0M
-$132.9M
-$159.0M
-$190.2M
-$227.6M
-$272.3M
-$325.8M
Owner Earnings
$747.5M
$894.3M
$1.1B
$1.3B
$1.5B
$1.8B
$2.2B
$2.6B
$3.1B
$3.8B
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$692.1M
$766.7M
$849.4M
$941.1M
$1.0B
$1.2B
$1.3B
$1.4B
$1.6B
$1.7B
Terminal Value represents 72.1% of Enterprise Value