Paycom Software, Inc.

LSE:0KGH Stock Report

Market Cap: US$11.6b

Paycom Software Valuation

Is 0KGH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 0KGH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0KGH ($207.71) is trading below our estimate of fair value ($249.94)

Significantly Below Fair Value: 0KGH is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0KGH?

Key metric: As 0KGH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0KGH. This is calculated by dividing 0KGH's market cap by their current earnings.
What is 0KGH's PE Ratio?
PE Ratio24.6x
EarningsUS$470.19m
Market CapUS$11.58b

Price to Earnings Ratio vs Peers

How does 0KGH's PE Ratio compare to its peers?

The above table shows the PE ratio for 0KGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.9x
PAGE PageGroup
20.6x24.2%UK£1.0b
LTG Learning Technologies Group
16.4x-9.0%UK£776.1m
STEM SThree
6.4x-36.3%UK£359.0m
ITRK Intertek Group
24.3x12.6%UK£7.5b
0KGH Paycom Software
24.6x2.4%US$11.6b

Price-To-Earnings vs Peers: 0KGH is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (16.9x).

Price to Earnings Ratio vs Industry

How does 0KGH's PE Ratio compare vs other companies in the GB Professional Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IBPO iEnergizer
1.7xn/aUS$140.06m
TEK Tekcapital
1.6xn/aUS$21.82m
No more companies available in this PE range
0KGH 24.6xIndustry Avg. 23.7xNo. of Companies4PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0KGH is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the UK Professional Services industry average (23.7x).

Price to Earnings Ratio vs Fair Ratio

What is 0KGH'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.

0KGH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.6x
Fair PE Ratio28x

Price-To-Earnings vs Fair Ratio: 0KGH is good value based on its Price-To-Earnings Ratio (24.6x) compared to the estimated Fair Price-To-Earnings Ratio (28x).

Analyst Price Targets

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

The above table shows the analyst 0KGH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$207.71
US$222.75
+7.2%
11.0%US$278.00US$185.00n/a15
Dec ’25US$231.92
US$201.62
-13.1%
11.0%US$260.00US$175.00n/a15
Nov ’25US$209.49
US$198.03
-5.5%
10.4%US$250.00US$175.00n/a15
Oct ’25US$165.07
US$183.50
+11.2%
14.6%US$250.00US$150.00n/a15
Sep ’25US$162.35
US$185.58
+14.3%
14.9%US$250.00US$150.00n/a16
Aug ’25US$167.45
US$185.58
+10.8%
14.9%US$250.00US$150.00n/a16
Jul ’25US$142.47
US$188.70
+32.5%
18.7%US$260.00US$145.00n/a16
Jun ’25US$145.61
US$195.60
+34.3%
16.3%US$260.00US$150.00n/a15
May ’25US$187.90
US$204.00
+8.6%
13.5%US$260.00US$160.00n/a16
Apr ’25US$199.70
US$203.00
+1.7%
13.7%US$260.00US$160.00n/a16
Mar ’25US$184.00
US$202.88
+10.3%
13.8%US$260.00US$160.00n/a16
Feb ’25US$191.96
US$204.22
+6.4%
18.7%US$295.00US$140.00n/a16
Jan ’25US$207.20
US$220.29
+6.3%
29.0%US$400.00US$140.00n/a17
Dec ’24US$184.45
US$219.67
+19.1%
28.4%US$400.00US$140.00US$231.9218
Nov ’24US$151.80
US$247.54
+63.1%
33.2%US$400.00US$140.00US$209.4917
Oct ’24US$262.80
US$383.37
+45.9%
9.3%US$450.00US$300.00US$165.0719
Sep ’24US$296.70
US$387.71
+30.7%
7.6%US$450.00US$325.00US$162.3520
Aug ’24US$370.25
US$385.80
+4.2%
8.7%US$450.00US$330.00US$167.4520
Jul ’24US$319.38
US$370.05
+15.9%
10.8%US$450.00US$300.00US$142.4719
Jun ’24US$281.63
US$370.05
+31.4%
10.8%US$450.00US$300.00US$145.6119
May ’24US$292.72
US$383.06
+30.9%
10.7%US$450.00US$289.00US$187.9018
Apr ’24US$305.44
US$382.63
+25.3%
10.8%US$450.00US$289.00US$199.7018
Mar ’24US$286.93
US$386.17
+34.6%
8.9%US$450.00US$336.00US$184.0019
Feb ’24US$333.54
US$382.81
+14.8%
9.2%US$450.00US$324.00US$191.9619
Jan ’24US$305.00
US$392.70
+28.8%
8.2%US$450.00US$345.00US$207.2019
Dec ’23US$343.71
US$394.81
+14.9%
8.1%US$450.00US$345.00US$184.4519

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 11:36
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Paycom Software, Inc. is covered by 43 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mark MarconBaird
Ishan MajumdarBaptista Research
Raimo LenschowBarclays