Paycom Software, Inc. (PAYC) Financial Ratios
13 years of historical data (2012–2024) · Technology · Software - Application
EV/EBITDA
↓
9.03
↓-82% vs avg
5yr avg: 51.36
30Y Low14.4·High74.5
P/FCF
↓
21.59
↓-77% vs avg
5yr avg: 95.52
30Y Low33.8·High198.0
P/B Ratio
↓
4.70
↓-76% vs avg
5yr avg: 19.80
30Y Low7.3·High40.2
ROE
↑
34.9%
↓+25% vs avg
5yr avg: 27.8%
30Y Low-1%·High45%
Debt/EBITDA
↓
0.11
+2% vs avg
5yr avg: 0.10
30Y Low0.1·High5.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
PAYC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Paycom Software, Inc. trades at 14.8x earnings, 83% below its 5-year average of 85.9x, sitting at the 0th percentile of its historical range. Compared to the Technology sector median P/E of 26.7x, the stock trades at a discount of 45%. On a free-cash-flow basis, the stock trades at 21.6x P/FCF, 77% below the 5-year average of 95.5x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.4B | $11.5B | $12.0B | $18.1B | $24.2B | $26.4B | $15.5B | $7.2B | $4.7B | $2.7B | $2.2B |
| Enterprise Value | $7.0B | $11.2B | $11.8B | $17.7B | $23.9B | $26.2B | $15.4B | $7.2B | $4.7B | $2.7B | $2.2B |
| P/E Ratio → | 14.76 | 22.98 | 35.16 | 64.11 | 123.20 | 183.84 | 85.68 | 52.33 | 71.09 | 61.47 | 104.53 |
| P/S Ratio | 3.91 | 6.13 | 7.08 | 13.13 | 22.89 | 31.33 | 20.96 | 12.67 | 10.91 | 8.15 | 9.70 |
| P/B Ratio | 4.70 | 7.32 | 9.20 | 15.26 | 27.03 | 40.20 | 29.36 | 21.43 | 16.79 | 23.02 | 22.17 |
| P/FCF | 21.59 | 33.84 | 41.58 | 79.07 | 125.07 | 198.03 | 117.72 | 57.43 | 66.32 | 48.64 | 82.49 |
| P/OCF | 13.79 | 21.61 | 24.71 | 49.44 | 75.65 | 116.01 | 68.94 | 38.81 | 36.16 | 27.11 | 50.72 |
P/E links to full P/E history page with 30-year chart
PAYC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Paycom Software, Inc.'s enterprise value stands at 9.0x EBITDA, 82% below its 5-year average of 51.4x. The Technology sector median is 17.5x, placing the stock at a 48% discount on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.96 | 6.95 | 12.86 | 22.65 | 31.18 | 20.82 | 12.65 | 10.88 | 8.06 | 9.59 |
| EV / EBITDA | 9.03 | 14.38 | 20.82 | 37.51 | 74.54 | 109.56 | 57.22 | 35.22 | 31.60 | 22.99 | 49.13 |
| EV / EBIT | 11.10 | 17.20 | 24.81 | 45.09 | 93.42 | 141.10 | 67.66 | 40.82 | 36.63 | 25.99 | 61.64 |
| EV / FCF | — | 32.91 | 40.83 | 77.44 | 123.78 | 197.13 | 116.96 | 57.34 | 66.17 | 48.09 | 81.54 |
PAYC Profitability
Margins and return-on-capital ratios measuring operating efficiency
Paycom Software, Inc. earns an operating margin of 33.7%. Operating margins have expanded from 27.5% to 33.7% over the past 3 years, signaling improving operational efficiency. Return on equity of 34.9% is exceptionally high. ROIC of 40.6% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 82.2% | 82.2% | 83.7% | 84.5% | 84.7% | 85.3% | 85.1% | 84.0% | 83.4% | 83.6% | 84.2% |
| Operating Margin | 33.7% | 33.7% | 26.6% | 27.5% | 24.0% | 22.1% | 30.7% | 30.7% | 30.0% | 30.9% | 15.3% |
| Net Profit Margin | 26.7% | 26.7% | 20.1% | 20.5% | 18.6% | 17.0% | 24.5% | 24.2% | 15.4% | 13.3% | 9.3% |
Return on Capital
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 34.9% | 34.9% | 27.4% | 27.1% | 25.3% | 24.3% | 41.9% | 44.5% | 33.6% | 40.8% | 24.3% |
| ROA | 10.0% | 10.0% | 8.4% | 7.9% | 6.7% | 5.6% | 9.0% | 9.5% | 5.5% | 4.5% | 2.5% |
| ROIC | 40.6% | 40.6% | 35.7% | 39.0% | 32.2% | 29.1% | 45.3% | 43.9% | 54.6% | 95.7% | 34.6% |
| ROCE | 35.1% | 35.1% | 28.3% | 27.5% | 24.0% | 22.9% | 36.9% | 49.1% | 65.7% | 61.9% | 25.6% |
PAYC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Paycom Software, Inc. carries a Debt/EBITDA ratio of 0.1x, which is very conservative (96% below the sector average of 2.9x). The company holds a net cash position — cash of $402M exceeds total debt of $83M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 186.6x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.05 | 0.05 | 0.06 | 0.02 | 0.03 | 0.05 | 0.06 | 0.10 | 0.13 | 0.26 | 0.26 |
| Debt / EBITDA | 0.11 | 0.11 | 0.13 | 0.06 | 0.09 | 0.13 | 0.12 | 0.17 | 0.24 | 0.26 | 0.59 |
| Net Debt / Equity | — | -0.20 | -0.17 | -0.31 | -0.28 | -0.18 | -0.19 | -0.03 | -0.04 | -0.26 | -0.25 |
| Net Debt / EBITDA | -0.41 | -0.41 | -0.39 | -0.79 | -0.78 | -0.50 | -0.38 | -0.06 | -0.07 | -0.26 | -0.57 |
| Debt / FCF | — | -0.93 | -0.76 | -1.63 | -1.29 | -0.91 | -0.77 | -0.09 | -0.15 | -0.55 | -0.95 |
| Interest Coverage | 186.56 | 186.56 | 237.53 | 151.48 | — | 9795.95 | 240.66 | 226.78 | 142.38 | 98.20 | 24.13 |
Net cash position: cash ($402M) exceeds total debt ($83M)
PAYC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.10x means Paycom Software, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has declined from 1.16x to 1.10x over the past 3 years.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.10 | 1.10 | 1.11 | 1.16 | 1.13 | 1.09 | 1.07 | 1.03 | 1.03 | 1.03 | 1.05 |
| Quick Ratio | 1.10 | 1.10 | 1.11 | 1.16 | 1.13 | 1.08 | 1.07 | 1.03 | 1.03 | 1.03 | 1.04 |
| Cash Ratio | 0.10 | 0.10 | 0.12 | 0.17 | 0.14 | 0.09 | 0.08 | 0.04 | 0.04 | 0.07 | 0.07 |
| Asset Turnover | — | 0.32 | 0.40 | 0.35 | 0.33 | 0.32 | 0.30 | 0.37 | 0.32 | 0.31 | 0.26 |
| Inventory Turnover | 239.00 | 239.00 | 197.36 | 132.36 | 143.14 | 107.34 | 94.77 | 113.88 | 73.57 | 80.10 | 32.45 |
| Days Sales Outstanding | — | 9.90 | 7.50 | 7.54 | 8.96 | 8.49 | 6.59 | 4.75 | 7.27 | 2.25 | 14.78 |
PAYC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Paycom Software, Inc. returns 2.8% to shareholders annually — split between a 1.1% dividend yield and 1.7% buyback yield. The payout ratio of 16.9% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 6.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 0.7% | 0.5% | — | — | — | — | — | — | — | — |
| Payout Ratio | 16.9% | 16.9% | 19.0% | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.8% | 4.4% | 2.8% | 1.6% | 0.8% | 0.5% | 1.2% | 1.9% | 1.4% | 1.6% | 1.0% |
| FCF Yield | 4.6% | 3.0% | 2.4% | 1.3% | 0.8% | 0.5% | 0.8% | 1.7% | 1.5% | 2.1% | 1.2% |
| Buyback Yield | 1.7% | 1.1% | 2.4% | 0.5% | 0.3% | 0.2% | 0.3% | 1.5% | 1.2% | 1.3% | 0.0% |
| Total Shareholder Yield | 2.8% | 1.8% | 2.9% | 0.5% | 0.3% | 0.2% | 0.3% | 1.5% | 1.2% | 1.3% | 0.0% |
| Shares Outstanding | — | $56M | $58M | $58M | $58M | $58M | $58M | $59M | $59M | $59M | $58M |
Peer Comparison
Compare PAYC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 PAYCYou | $7B | 14.8 | 9.0 | 21.6 | 82.2% | 33.7% | 34.9% | 40.6% | 0.1 |
 PAYX | $33B | 20.3 | 15.2 | 18.9 | 72.4% | 39.6% | 41.8% | 30.9% | 2.1 |
 ADP | $85B | 21.1 | 15.3 | 17.8 | 50.8% | 26.3% | 76.0% | 47.1% | 1.5 |
 PCTY | $6B | 26.8 | 13.9 | 16.9 | 68.8% | 19.1% | 20.0% | 26.2% | 0.5 |
 ISRG | $160B | 57.4 | 43.4 | 64.4 | 66.0% | 29.3% | 16.6% | 15.0% | 0.1 |
 WK | $3B | -117.8 | — | 22.8 | 78.5% | -4.8% | — | -7.0% | — |
 HUBS | $13B | 286.1 | 69.8 | 17.9 | 83.8% | 0.4% | 2.3% | 0.4% | 2.8 |
 INSP | $1B | 9.9 | 20.3 | 17.7 | 85.4% | 5.6% | 19.8% | 6.0% | 0.5 |
 TNET | $2B | 13.4 | 2.7 | 6.4 | 17.4% | 5.3% | 252.0% | — | 2.8 |
 NSP | $1B | -158.8 | 25.3 | — | 13.2% | -0.1% | -9.8% | — | 12.4 |
 TASK | $352M | 5.9 | 4.6 | 4.8 | 184.9% | -16.6% | 18.6% | 16.3% | 3.1 |
| Technology Median | — | 26.7 | 17.5 | 19.5 | 48.9% | -0.6% | 2.5% | 3.0% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonPAYC — Frequently Asked Questions
Quick answers to the most common questions about buying PAYC stock.
What is Paycom Software, Inc.'s P/E ratio?
Paycom Software, Inc.'s current P/E ratio is 14.8x. The historical average is 80.4x.
What is Paycom Software, Inc.'s EV/EBITDA?
Paycom Software, Inc.'s current EV/EBITDA is 9.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 40.3x.
What is Paycom Software, Inc.'s ROE?
Paycom Software, Inc.'s return on equity (ROE) is 34.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 28.0%.
Is PAYC stock overvalued?
Based on historical data, Paycom Software, Inc. is trading at a P/E of 14.8x. Compare with industry peers and growth rates for a complete picture.
What is Paycom Software, Inc.'s dividend yield?
Paycom Software, Inc.'s current dividend yield is 1.14% with a payout ratio of 16.9%.
What are Paycom Software, Inc.'s profit margins?
Paycom Software, Inc. has 82.2% gross margin and 33.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Paycom Software, Inc. have?
Paycom Software, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.