Paylocity Holding Corporation

NasdaqGS:PCTY Stock Report

Market Cap: US$11.0b

Paylocity Holding Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: PCTY ($196.83) is trading below our estimate of fair value ($196.96)

Significantly Below Fair Value: PCTY 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 PCTY?

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

The above table shows the Price to Earnings ratio for PCTY. This is calculated by dividing PCTY's market cap by their current earnings.
What is PCTY's PE Ratio?
PE Ratio49.5x
EarningsUS$221.82m
Market CapUS$10.97b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PCTY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.3x
PAYC Paycom Software
24.6x2.4%US$11.6b
RHI Robert Half
25.4x18.3%US$7.2b
TNET TriNet Group
17x2.9%US$4.5b
KFY Korn Ferry
14.1x12.1%US$3.4b
PCTY Paylocity Holding
49.5x15.0%US$11.0b

Price-To-Earnings vs Peers: PCTY is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

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

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CNDT Conduent
1.6x-104.3%US$705.11m
ALJJ ALJ Regional Holdings
0.7xn/aUS$70.26m
VCIG VCI Global
1.9xn/aUS$17.66m
LICN Lichen China
0.9xn/aUS$6.61m
PCTY 49.5xIndustry Avg. 23.8xNo. of Companies10PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PCTY is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the US Professional Services industry average (23.8x).

Price to Earnings Ratio vs Fair Ratio

What is PCTY'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.

PCTY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio49.5x
Fair PE Ratio30.3x

Price-To-Earnings vs Fair Ratio: PCTY is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the estimated Fair Price-To-Earnings Ratio (30.3x).

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 PCTY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$196.83
US$213.64
+8.5%
8.2%US$250.00US$184.00n/a19
Dec ’25US$207.54
US$201.85
-2.7%
8.3%US$250.00US$175.00n/a19
Nov ’25US$191.76
US$201.32
+5.0%
8.6%US$250.00US$175.00n/a19
Oct ’25US$162.87
US$182.32
+11.9%
12.8%US$250.00US$145.00n/a20
Sep ’25US$161.40
US$181.57
+12.5%
13.0%US$250.00US$145.00n/a20
Aug ’25US$148.23
US$181.62
+22.5%
13.7%US$250.00US$145.00n/a20
Jul ’25US$132.00
US$186.27
+41.1%
13.0%US$250.00US$145.00n/a20
Jun ’25US$142.17
US$194.52
+36.8%
10.0%US$250.00US$155.00n/a20
May ’25US$149.24
US$193.33
+29.5%
10.6%US$250.00US$155.00n/a21
Apr ’25US$167.70
US$192.61
+14.9%
11.1%US$250.00US$155.00n/a21
Mar ’25US$168.68
US$192.52
+14.1%
11.1%US$250.00US$155.00n/a21
Feb ’25US$160.00
US$202.59
+26.6%
14.4%US$280.00US$160.00n/a20
Jan ’25US$164.85
US$206.26
+25.1%
14.7%US$280.00US$160.00n/a19
Dec ’24US$159.88
US$204.95
+28.2%
14.8%US$280.00US$160.00US$207.5419
Nov ’24US$164.14
US$250.72
+52.7%
12.2%US$325.00US$210.00US$191.7618
Oct ’24US$181.70
US$253.47
+39.5%
12.0%US$325.00US$213.00US$162.8717
Sep ’24US$203.78
US$253.00
+24.2%
12.0%US$325.00US$213.00US$161.4018
Aug ’24US$226.54
US$251.67
+11.1%
12.8%US$325.00US$204.00US$148.2318
Jul ’24US$184.53
US$243.44
+31.9%
14.6%US$325.00US$199.00US$132.0018
Jun ’24US$171.23
US$243.00
+41.9%
14.8%US$325.00US$199.00US$142.1718
May ’24US$195.57
US$264.00
+35.0%
14.2%US$325.00US$210.00US$149.2417
Apr ’24US$198.78
US$268.76
+35.2%
13.1%US$325.00US$210.00US$167.7017
Mar ’24US$188.89
US$274.06
+45.1%
10.9%US$325.00US$210.00US$168.6817
Feb ’24US$219.52
US$264.18
+20.3%
12.9%US$325.00US$200.00US$160.0017
Jan ’24US$194.26
US$268.47
+38.2%
11.6%US$325.00US$200.00US$164.8517
Dec ’23US$223.37
US$270.24
+21.0%
11.0%US$325.00US$200.00US$159.8817

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:15
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/06/30

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

Paylocity Holding Corporation is covered by 39 analysts. 18 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