PAYC's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 750.35 -- higher than 95.13% of US-listed equities with positive expected earnings growth.
PAYC's current price/earnings ratio is 123.98, which is higher than 94.04% of US stocks with positive earnings.
The price/operating cash flow metric for Paycom Software Inc is higher than 96.77% of stocks in our set with a positive cash flow.
Stocks that are quantitatively similar to PAYC, based on their financial statements, market capitalization, and price volatility, are LOGI, WST, AKAM, CHKP, and ABMD.
Paycom Software offers cloud-based human capital management software solutions delivered as Softwareas-a-Service in the United States. It provides functionality and data analytics that businesses need to manage the complete employment life-cycle from recruitment to retirement. The company was founded in 1998 and is based in Oklahoma City, Oklahoma.
PAYC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Paycom Software Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Paycom Software Inc ranked in the 22th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 65.5%. The most interesting components of our discounted cash flow analysis for Paycom Software Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 534.32; that's higher than 98.07% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than just 2.19% of the free cash flow producing stocks we're observing.
PAYC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 54.76% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PAYC, try AKAM, APPF, INTU, IEHC, and VECO.
I have been bullish on Paycom (NYSE:PAYC) for several years (1,2), and while I maintain my bullish long term view on the company, I think it will struggle in the short and medium-term. To justify its current valuation, the company has to continue growing at a superb pace, but the...
Alberto Wallis on Seeking Alpha | September 22, 2020
OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (NYSE:PAYC), a leading provider of comprehensive, cloud-based human capital management software, today announced that the Company will virtually present at the Citi 2020 Global Technology Conference on Wednesday, September 9, 2020 at 1:30 p.m. Eastern Time. A live webcast of the presentation will be available at investors.paycom.com under the “Events” tab. Presentations may include forward-looking information. A webcast replay will be availa
Paycom Software, Inc. (PAYC) Q2 2020 Earnings Conference Call August 04, 2020 05:00 PM ET Company Participants James Samford - IR Chad Richison - President and CEO Craig Boelte - CFO Conference Call Participants Raimo Lenschow - Barclays Samad Samana - Jefferies Mark Marcon - Baird Brad Zelnick - Credit...