Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.
No risks identified.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (21 analysts).
| Parameter | BaseValue |
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Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $319.02 Implied EV: $15.16B |
What growth rate is the market pricing in at $264?
The market implies +12.3% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +13.2%, reflecting heavy growth investment expected to generate future returns.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Near fair value but market is greedy — optimism is already priced in
