PAYC

Paycom Software, Inc.

Technology · $9.8B market cap

Verdict

Share price

$220.99

close of Oct 3, 2026

Fair value

$171.50

Sticker Price

Payback Price

$68.60

buy price

Overpriced

PAYC is Overpriced: at $220.99 it trades 29% above its fair value of $171.50. Its buy price (Payback Price) is $68.60, 69% below today's price. Business quality is strong: all 5 key numbers clear the 10% bar.

How we valued it

Free Cash Flow. Sales grew 14% a year over the last 3 years, below the 15% we look for in a fast grower, so we value it on its free cash flow instead of an earnings forecast.

Business quality

5 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth31.6% a year✓
Equity per share growth26.6% a year✓
Sales growth24.8% a year✓
Free cash flow growth23.2% a year✓
Return on invested capital20.9%✓

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Superinvestors

3 of the investors we track hold PAYC. In Q2 2026, 1 trimmed and 1 sold out. Who we track

Moves in Q2 2026

Trimmed: Terry Smith

Sold out: Polen Capital Management

Insider activity

Since Jun 15, 2026: no open-market purchases, 3 sales worth $670K and 4 other filings (stock awards, tax withholding and similar). Why purchases matter

Sales

Other filings

About Paycom Software, Inc.

Paycom Software, Inc., established in 1998 and headquartered in Oklahoma City, Oklahoma, provides a comprehensive, cloud-based human capital management (HCM) platform. This software-as-a-service (SaaS) solution is specifically tailored for small to mid-sized businesses across the United States. It equips organizations with the essential functionality and analytical insights needed to oversee the complete employee…

Software - Application

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works