Paycom Soft Valuation
| PAYC Stock | USD 192.73 5.27 2.66% |
At this time, the company appears to be undervalued. Paycom Soft holds a recent Real Value of $239.19 per share. The prevailing price of the company is $192.73. Our model determines the value of Paycom Soft from analyzing the company fundamentals such as Operating Margin of 0.25 %, shares outstanding of 58.15 M, and Return On Equity of 0.27 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support purchasing undervalued entities and exiting overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Paycom Soft's valuation include:
Price Book 8.8361 | Enterprise Value 10.7 B | Enterprise Value Ebitda 18.7985 | Price Sales 6.7981 | Forward PE 25.9067 |
Undervalued
Today
Please note that Paycom Soft's price fluctuation is very steady at this time. Calculation of the real value of Paycom Soft is based on 3 months time horizon. Increasing Paycom Soft's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Paycom Soft is useful when determining the fair value of the Paycom stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Paycom Soft. Since Paycom Soft is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Paycom Stock. However, Paycom Soft's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 192.73 | Real 239.19 | Target 379.5 | Hype 192.7 |
The real value of Paycom Stock, also known as its intrinsic value, is the underlying worth of Paycom Soft Company, which is reflected in its stock price. It is based on Paycom Soft's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Paycom Soft's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Paycom Soft's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Paycom Soft helps investors to forecast how Paycom stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Paycom Soft more accurately as focusing exclusively on Paycom Soft's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Paycom Soft's intrinsic value based on its ongoing forecasts of Paycom Soft's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Paycom Soft's closest peers. When choosing an evaluation method for Paycom Soft, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Paycom Soft Investments |
|
Paycom Valuation Trend
Knowing Paycom Soft's actual value is paramount for traders to make sound investment determinations. Paycom Soft's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Paycom Soft's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Paycom Soft's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Paycom Market Cap
Paycom Soft is regarded fourth in market capitalization category among related companies. Market capitalization of Information Technology industry is at this time estimated at about 314.83 Billion. Paycom Soft holds roughly 11.21 Billion in market capitalization claiming about 4% of equities under Information Technology industry.Paycom Soft Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Paycom Soft's current stock value. Our valuation model uses many indicators to compare Paycom Soft value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Paycom Soft competition to find correlations between indicators driving Paycom Soft's intrinsic value. More Info.Paycom Soft is regarded third in price to earning category among related companies. It is regarded fourth in price to book category among related companies fabricating about 0.07 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Paycom Soft is roughly 14.81 . As of April 16, 2024, Price To Book Ratio is expected to decline to 8.70. Comparative valuation analysis is a catch-all model that can be used if you cannot value Paycom Soft by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Paycom Soft's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Paycom Soft's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Paycom Soft's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Paycom Soft and how it compares across the competition.
About Paycom Soft Valuation
The stock valuation mechanism determines the current worth of Paycom Soft on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Paycom Soft. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Paycom Soft based exclusively on its fundamental and basic technical indicators. By analyzing Paycom Soft's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Paycom Soft's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Paycom Soft. We calculate exposure to Paycom Soft's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Paycom Soft's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.4 B | 1.5 B | |
| Pretax Profit Margin | 0.28 | 0.14 | |
| Operating Profit Margin | 0.27 | 0.15 | |
| Net Profit Margin | 0.20 | 0.11 | |
| Gross Profit Margin | 0.84 | 0.66 |
8 Steps to conduct Paycom Soft's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Paycom Soft's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Paycom Soft's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Paycom Soft's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Paycom Soft's revenue streams: Identify Paycom Soft's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Paycom Soft's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Paycom Soft's growth potential: Evaluate Paycom Soft's management, business model, and growth potential.
- Determine Paycom Soft's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Paycom Soft's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Paycom Soft represents a small ownership stake in the entity. As a stockholder of Paycom, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Paycom Soft Dividends Analysis For Valuation
The current year's Dividend Payout Ratio is expected to grow to 0.18, whereas Dividends Paid is projected to grow to (61.6 M). . At present, Paycom Soft's Retained Earnings Total Equity is projected to increase significantly based on the last few years of reporting. The current year's Earnings Yield is expected to grow to 0.03, whereas Price Earnings To Growth Ratio is forecasted to decline to 1.57.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -64.8 M | -61.6 M | |
| Dividend Yield | 0 | 0 | |
| Dividend Payout Ratio | 0.17 | 0.18 | |
| Dividend Paid And Capex Coverage Ratio | (3.67) | (3.86) |
There are various types of dividends Paycom Soft can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Paycom shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Paycom Soft directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Paycom pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Paycom Soft by the value of the dividends paid out.
Paycom Soft Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Paycom Soft does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 58 M | |
| Quarterly Earnings Growth Y O Y | 0.034 | |
| Forward Price Earnings | 25.9067 |
Paycom Soft Current Valuation Indicators
Valuation refers to the process of determining the present value of Paycom Soft and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Paycom we look at many different elements of the entity such as Paycom's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Paycom Soft's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Paycom Soft's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Paycom Soft, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Paycom Soft's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Paycom Soft's worth.When determining whether Paycom Soft offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Paycom Soft's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Paycom Soft Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Paycom Soft Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Paycom Soft. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in manufacturing. For information on how to trade Paycom Stock refer to our How to Trade Paycom Stock guide.You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Complementary Tools for Paycom Stock analysis
When running Paycom Soft's price analysis, check to measure Paycom Soft's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Paycom Soft is operating at the current time. Most of Paycom Soft's value examination focuses on studying past and present price action to predict the probability of Paycom Soft's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Paycom Soft's price. Additionally, you may evaluate how the addition of Paycom Soft to your portfolios can decrease your overall portfolio volatility.
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |
Is Paycom Soft's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Paycom Soft. If investors know Paycom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Paycom Soft listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.034 | Dividend Share 1.125 | Earnings Share 5.88 | Revenue Per Share 29.35 | Quarterly Revenue Growth 0.173 |
The market value of Paycom Soft is measured differently than its book value, which is the value of Paycom that is recorded on the company's balance sheet. Investors also form their own opinion of Paycom Soft's value that differs from its market value or its book value, called intrinsic value, which is Paycom Soft's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Paycom Soft's market value can be influenced by many factors that don't directly affect Paycom Soft's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Paycom Soft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Paycom Soft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Paycom Soft's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.