Paylocity (PCTY) Partners With Chicago Bulls: A Fresh Look at Valuation After High-Profile NBA Alliance

Paylocity Holding (PCTY) just made headlines by joining forces with the Chicago Bulls in a multi-year partnership, stepping into the spotlight as the team’s Official HCM Software Partner. This move is more than just a branding play; it puts Paylocity's technology at the heart of a major NBA franchise's operations, offering both the basketball team and its employees streamlined HR and payroll processes. The collaboration features a purposeful twist as well, with Paylocity fronting a community youth basketball clinic for girls in Chicago, signaling deeper local engagement. For investors, the announcement comes at an interesting juncture. Paylocity’s share price has given up ground in the past month and over the past 3 months, with momentum clearly softening despite the roughly 6% gain over the past year. Other tech players have leaned on high-profile partnerships to win attention, and Paylocity’s latest move might suggest a similar playbook, but with a clear angle on performance and purpose. Notably, the last several years have brought mixed stock results, reflecting shifting perceptions of risk, growth, and valuation. So, after a year where the stock has underperformed but just landed a new, visible partnership, is there an opportunity for investors, or is the optimistic future already reflected in today’s price?

Most Popular Narrative: 22.9% Undervalued

According to the most widely followed narrative, Paylocity is seen as materially undervalued, with analysts pointing to strong earnings visibility and multiple growth levers powering future results.

“Expansion of Paylocity's unified HR and finance platform, coupled with advanced AI-powered features, is enhancing automation and streamlining complex workflows for clients, positioning the company to capture growing demand from businesses undergoing digital transformation, likely driving higher recurring revenue and average revenue per client over time.”

Curious about what’s powering this big call? There’s a bold vision underneath, built on aggressive projections for growth and profitability, plus an ambitious future profit multiple that’s turning heads on Wall Street. If you want to uncover which assumptions make up the foundation of this compelling valuation narrative, keep reading. The full breakdown reveals numbers that may surprise you.

Result: Fair Value of $220.16 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing revenue growth or tougher competition from larger HCM providers could quickly challenge the optimistic case built by analysts.

Find out about the key risks to this Paylocity Holding narrative.

Another View: A Look at Market Comparisons

While analysts see material upside for Paylocity, a check against typical market valuation signals paints a more expensive picture today. This is particularly notable when compared to other US Professional Services names. Could the market already be pricing in future optimism?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Paylocity Holding to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Paylocity Holding Narrative

If you think there’s another story behind the numbers or want to analyze the data for yourself, it only takes a few minutes to craft your own perspective. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Paylocity Holding.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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