Paycom Software Valuation

Q: What is the Fair Price of P1YC34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

P1YC34 (R$31.28) is trading below our estimate of [[fair value]] (R$61.61)

Is P1YC34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of P1YC34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: P1YC34 (R$31.28) is trading below our estimate of fair value (R$61.61)

Significantly Below Fair Value: P1YC34 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for P1YC34?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for P1YC34. This is calculated by dividing P1YC34's market cap by their current preferred multiple.
What is P1YC34's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$9.52b

P1YC34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.2x
Enterprise Value/EBITDA	14.1x
PEG Ratio	7.8x

Price to Earnings Ratio vs Peers

How does P1YC34's PE Ratio compare to its peers?

The above table shows the PE ratio for P1YC34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	69x
GGPS3 GPS Participações e Empreendimentos	18.7x	19.7%	R$12.5b
DAY Dayforce	197.7x	40.8%	US$9.4b
PCTY Paylocity Holding	43.7x	15.9%	US$9.1b
RAND Randstad	15.7x	17.4%	€7.7b
P1YC34 Paycom Software	20.2x	2.6%	R$9.5b

Price-To-Earnings vs Peers: P1YC34 is good value based on its Price-To-Earnings Ratio (20.2x) compared to the peer average (69x).

Price to Earnings Ratio vs Industry

How does P1YC34's PE Ratio compare vs other companies in the Global Professional Services Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.1%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.1%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: P1YC34 is good value based on its Price-To-Earnings Ratio (20.2x) compared to the Global Professional Services industry average (21.2x).

Price to Earnings Ratio vs Fair Ratio

What is P1YC34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

P1YC34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate P1YC34's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.