Paycom Software, Inc. (PAYC) P/E Ratio History
UndervaluedTrading at 29.4x vs 5Y avg 50.4x · 40th percentile · Below historical baseline · Data 2014–2026
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P/E Ratio Analysis
As of November 7, 2026, Paycom Software, Inc. (PAYC) trades at a price-to-earnings ratio of 29.4x, with a stock price of $237.32 and trailing twelve-month earnings per share of $10.62.
The current P/E is 42% below its 5-year average of 50.4x. Over the past five years, PAYC's P/E has ranged from a low of 13.4x to a high of 168.1x, placing the current valuation at the 40th percentile of its historical range.
Compared to the Industrials sector median P/E of 24.6x, PAYC trades at a 19% premium to its sector peers. The sector includes 428 companies with P/E ratios ranging from 0.0x to 197.1x.
The PEG ratio of 1.09 (P/E divided by -9% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, PAYC trades roughly in line with the S&P 500 median P/E of 26.3x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our PAYC DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
PAYC Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
PAYC P/E vs Peers
Payroll, PEO and HCM peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $42B | 23.9 | 2.38 | +7% | |
| $121B | 27.7 | 2.21 | +10% | |
| $9B | 35.2 | 1.12 | +22% | |
| $160B | 57.5 | 2.64 | +23% | |
| $10B | 233.3 | - | +863%Best | |
| $2B | 13.1 | - | +179% | |
| $3B | 21.1 | - | -8% | |
| $820M | 8.3Lowest | 0.33Best | +120% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
PAYC Historical P/E Data (2014–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q2 | - | $125.68 | $9.41 | 13.4x | -83% |
| FY2026 Q1 | - | $121.54 | $8.65 | 14.1x | -82% |
| FY2025 Q4 | Dec 31 2025 | $159.36 | $8.09 | 19.7x | -75% |
| FY2025 Q3 | - | $208.14 | $8.04 | 25.9x | -67% |
| FY2025 Q2 | Jun 30 2025 | $231.40 | $7.39 | 31.3x | -60% |
| FY2025 Q1 | Mar 31 2025 | $218.48 | $7.01 | 31.2x | -60% |
| FY2024 Q4 | - | $204.97 | $8.90 | 23.0x | -70% |
| FY2024 Q3 | Sep 30 2024 | $166.57 | $8.31 | 20.0x | -74% |
| FY2024 Q2 | Jun 30 2024 | $143.04 | $8.30 | 17.2x | -78% |
| FY2024 Q1 | Mar 31 2024 | $199.01 | $8.21 | 24.2x | -69% |
| FY2023 Q4 | Dec 31 2023 | $206.72 | $5.90 | 35.0x | -55% |
| FY2023 Q3 | Sep 30 2023 | $259.27 | $5.85 | 44.3x | -43% |
| FY2023 Q2 | Jun 30 2023 | $321.24 | $5.45 | 58.9x | -24% |
| FY2023 Q1 | Mar 31 2023 | $304.01 | $5.33 | 57.0x | -27% |
| FY2022 Q4 | Dec 31 2022 | $310.31 | $4.85 | 64.0x | -18% |
| FY2022 Q3 | Sep 30 2022 | $329.99 | $4.31 | 76.6x | -2% |
| FY2022 Q2 | - | $280.12 | $3.93 | 71.3x | -9% |
| FY2022 Q1 | - | $346.38 | $3.84 | 90.2x | +16% |
| FY2021 Q4 | Dec 31 2021 | $415.19 | $3.37 | 123.2x | +58% |
| FY2021 Q3 | - | $495.75 | $2.95 | 168.1x | +115% |
| FY2021 Q2 | Jun 30 2021 | $363.47 | $2.90 | 125.3x | +61% |
| FY2021 Q1 | Mar 31 2021 | $370.06 | $2.49 | 148.6x | +90% |
| FY2020 Q4 | - | $452.25 | $2.46 | 183.8x | +136% |
| FY2020 Q3 | Sep 30 2020 | $311.30 | $2.82 | 110.4x | +41% |
| FY2020 Q2 | - | $309.73 | $3.02 | 102.6x | +31% |
| FY2020 Q1 | - | $202.01 | $3.36 | 60.1x | -23% |
| FY2019 Q4 | - | $264.76 | $3.09 | 85.7x | +10% |
| FY2019 Q3 | Sep 30 2019 | $209.49 | $2.85 | 73.5x | -6% |
| FY2019 Q2 | Jun 30 2019 | $226.72 | $2.67 | 84.9x | +9% |
| FY2019 Q1 | Mar 31 2019 | $189.13 | $2.45 | 77.2x | -1% |
| FY2018 Q4 | Dec 31 2018 | $122.45 | $2.34 | 52.3x | -33% |
| FY2018 Q3 | Sep 30 2018 | $155.41 | $2.02 | 76.9x | -1% |
| FY2018 Q2 | Jun 30 2018 | $98.83 | $1.77 | 55.8x | -28% |
| FY2018 Q1 | Mar 31 2018 | $107.39 | $1.40 | 76.7x | -2% |
| FY2017 Q4 | Dec 31 2017 | $80.33 | $1.13 | 71.1x | -9% |
| FY2017 Q3 | Sep 30 2017 | $74.96 | $1.06 | 70.7x | -9% |
| FY2017 Q2 | Jun 30 2017 | $68.41 | $0.92 | 74.4x | -5% |
| FY2017 Q1 | Mar 31 2017 | $57.51 | $0.86 | 66.9x | -14% |
| FY2016 Q4 | Dec 31 2016 | $45.49 | $0.74 | 61.5x | -21% |
| FY2016 Q3 | Sep 30 2016 | $50.13 | $0.68 | 73.7x | -6% |
| FY2016 Q2 | - | $43.21 | $0.65 | 66.5x | -15% |
| FY2016 Q1 | - | $35.60 | $0.57 | 62.5x | -20% |
| FY2015 Q4 | - | $37.63 | $0.37 | 101.7x | +30% |
| FY2015 Q3 | Sep 30 2015 | $35.91 | $0.33 | 108.8x | +39% |
| FY2015 Q2 | - | $34.15 | $0.31 | 110.1x | +41% |
| FY2015 Q1 | - | $32.06 | $0.20 | 161.7x | +107% |
| FY2014 Q4 | Dec 31 2014 | $26.33 | $0.11 | 241.1x | +209% |
| FY2014 Q3 | - | $16.56 | $0.17 | 97.9x | +26% |
| FY2014 Q2 | Jun 30 2014 | $14.59 | $0.11 | 132.3x | +70% |
Average P/E for displayed period: 78.0x
PAYC Chart Terminal
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Intrinsic Valuation
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Historical Returns
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Peer Comparison
Compare growth, multiples, and margins vs sector.
PAYC — Frequently Asked Questions
Quick answers to the most common questions about buying PAYC stock.
What is PAYC's P/E ratio?
Paycom Software, Inc. (PAYC) trailing twelve-month P/E ratio is 29.4x, based on TTM diluted EPS of $10.62. The 5-year average P/E is 50.4x and the historical range spans 13.4x to 168.1x.
Is PAYC stock overvalued or undervalued?
PAYC trades at 29.4x P/E, below its 5-year average of 50.4x. At the 40th percentile of its historical range (13.4x–168.1x), the stock is priced at a discount to its own history.
Is PAYC stock expensive?
No, PAYC is not expensive on a historical basis. The current P/E of 29.4x is below the 5-year average of 50.4x and sits at the 40th percentile of its valuation range.
What is PAYC's historical P/E range?
Over the past 5 years, PAYC's P/E ratio has ranged from 13.4x to 168.1x, with a median of 35.0x and an average of 50.4x. The current P/E of 29.4x places the stock at the 40th percentile of this range. Full historical data spans 2014–2026.
How does PAYC's P/E compare to the S&P 500?
PAYC trades at 29.4x P/E versus the S&P 500 median of 26.3x. The 12% premium to the market typically reflects higher expected earnings growth or quality.
How does PAYC's valuation compare to Industrials peers?
Paycom Software, Inc. P/E of 29.4x compares to the Industrials sector median of 24.6x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is PAYC's PEG ratio?
PAYC PEG ratio is 1.09, based on a P/E of 29.4x and EPS growth of -9.4%. A PEG between 1 and 2 suggests valuation aligns with growth expectations — typically considered fair.
What is PAYC's earnings yield?
PAYC earnings yield is 3.40%, the inverse of its 29.4x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.