Stock Analysis on Net

Paycom Software Inc. (NYSE:PAYC)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

Paycom Software Inc., current price multiples

Microsoft Excel
Paycom Software Inc. Industrials
Selected Financial Data
Current share price (P) $162.66
No. shares of common stock outstanding 57,700,820
Growth rate (g) 28.23%
 
Earnings per share (EPS) $4.88
Next year expected EPS $6.25
Operating profit per share $6.56
Sales per share $23.83
Book value per share (BVPS) $20.50
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 33.35 46.65
Price to next year expected earnings 26.01 47.92
Price-earnings-growth (PEG) 1.18
Price to operating profit (P/OP) 24.79 26.13
Price to sales (P/S) 6.82 2.44
Price to book value (P/BV) 7.94 7.18

Based on: 10-K (reporting date: 2022-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Paycom Software Inc., historical price multiples

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Price to earnings (P/E) 63.23 97.02 161.62 96.85 74.54
Price to operating profit (P/OP) 46.99 74.98 124.57 77.30 58.82
Price to sales (P/S) 12.94 18.01 27.55 23.71 18.04
Price to book value (P/BV) 15.05 21.27 35.36 33.21 30.52

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Paycom Software Inc. P/E ratio decreased from 2020 to 2021 and from 2021 to 2022.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Paycom Software Inc. P/OP ratio decreased from 2020 to 2021 and from 2021 to 2022.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Paycom Software Inc. P/S ratio decreased from 2020 to 2021 and from 2021 to 2022.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Paycom Software Inc. P/BV ratio decreased from 2020 to 2021 and from 2021 to 2022.

Price to Earnings (P/E)

Paycom Software Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 57,871,962 58,014,548 57,739,986 57,661,188 57,276,992
Selected Financial Data (US$)
Net income (in thousands) 281,389 195,960 143,453 180,576 137,065
Earnings per share (EPS)2 4.86 3.38 2.48 3.13 2.39
Share price1, 3 307.45 327.72 401.55 303.29 178.38
Valuation Ratio
P/E ratio4 63.23 97.02 161.62 96.85 74.54
Benchmarks
P/E Ratio, Industry
Industrials 36.38 33.32 161.96 49.05

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 281,389,000 ÷ 57,871,962 = 4.86

3 Closing price as at the filing date of Paycom Software Inc. Annual Report.

4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 307.45 ÷ 4.86 = 63.23

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Paycom Software Inc. P/E ratio decreased from 2020 to 2021 and from 2021 to 2022.

Price to Operating Profit (P/OP)

Paycom Software Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 57,871,962 58,014,548 57,739,986 57,661,188 57,276,992
Selected Financial Data (US$)
Operating income (in thousands) 378,679 253,567 186,123 226,224 173,715
Operating profit per share2 6.54 4.37 3.22 3.92 3.03
Share price1, 3 307.45 327.72 401.55 303.29 178.38
Valuation Ratio
P/OP ratio4 46.99 74.98 124.57 77.30 58.82
Benchmarks
P/OP Ratio, Industry
Industrials 20.37 21.72 48.99 19.39

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 378,679,000 ÷ 57,871,962 = 6.54

3 Closing price as at the filing date of Paycom Software Inc. Annual Report.

4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 307.45 ÷ 6.54 = 46.99

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Paycom Software Inc. P/OP ratio decreased from 2020 to 2021 and from 2021 to 2022.

Price to Sales (P/S)

Paycom Software Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 57,871,962 58,014,548 57,739,986 57,661,188 57,276,992
Selected Financial Data (US$)
Revenues (in thousands) 1,375,218 1,055,524 841,434 737,671 566,336
Sales per share2 23.76 18.19 14.57 12.79 9.89
Share price1, 3 307.45 327.72 401.55 303.29 178.38
Valuation Ratio
P/S ratio4 12.94 18.01 27.55 23.71 18.04
Benchmarks
P/S Ratio, Industry
Industrials 1.90 2.13 2.17 1.88

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 1,375,218,000 ÷ 57,871,962 = 23.76

3 Closing price as at the filing date of Paycom Software Inc. Annual Report.

4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 307.45 ÷ 23.76 = 12.94

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Paycom Software Inc. P/S ratio decreased from 2020 to 2021 and from 2021 to 2022.

Price to Book Value (P/BV)

Paycom Software Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 57,871,962 58,014,548 57,739,986 57,661,188 57,276,992
Selected Financial Data (US$)
Stockholders’ equity (in thousands) 1,182,607 893,714 655,643 526,628 334,753
Book value per share (BVPS)2 20.43 15.40 11.36 9.13 5.84
Share price1, 3 307.45 327.72 401.55 303.29 178.38
Valuation Ratio
P/BV ratio4 15.05 21.27 35.36 33.21 30.52
Benchmarks
P/BV Ratio, Industry
Industrials 5.60 5.49 5.98 6.61

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 1,182,607,000 ÷ 57,871,962 = 20.43

3 Closing price as at the filing date of Paycom Software Inc. Annual Report.

4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 307.45 ÷ 20.43 = 15.05

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Paycom Software Inc. P/BV ratio decreased from 2020 to 2021 and from 2021 to 2022.