Paylocity Holding Corporation

NasdaqGS:PCTY Stock Report

Market Cap: US$5.7b

Paylocity Holding Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: PCTY ($105.66) is trading below our estimate of future cash flow value ($248.4)

Significantly Below Future Cash Flow Value: PCTY is trading below future cash flow value by more than 20%.

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 Ratio23.9x
EarningsUS$238.28m
Market CapUS$5.69b

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 Average15.8x
PAYC Paycom Software
13.4x6.05%US$6.1b
BZ Kanzhun
22.4x12.09%US$8.1b
KFY Korn Ferry
12.6x11.42%US$3.2b
UPWK Upwork
14.9x18.21%US$1.7b
PCTY Paylocity Holding
23.9x15.27%US$5.7b

Price-To-Earnings vs Peers: PCTY is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the peer average (15.8x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ALJJ ALJ Regional Holdings
0.7xn/aUS$70.26m
VCIG VCI Global
1.6xn/aUS$11.26m
SHMY Synergy Empire
1.2xn/aUS$915.15k
STAF.Q Staffing 360 Solutions
n/an/aUS$1.00
No more companies available in this PE range
PCTY 23.9xIndustry Avg. 19.6xNo. of Companies11PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PCTY is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the US Professional Services industry average (19.6x).

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 Ratio23.9x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: PCTY is good value based on its Price-To-Earnings Ratio (23.9x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).

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$105.66
US$170.38
+61.25%
16.41%US$250.00US$142.00n/a21
Feb ’27US$134.98
US$191.00
+41.50%
16.65%US$250.00US$142.00n/a21
Jan ’27US$152.50
US$193.00
+26.56%
15.43%US$250.00US$142.00n/a21
Dec ’26US$146.81
US$193.45
+31.77%
15.76%US$250.00US$142.00n/a20
Nov ’26US$141.27
US$213.95
+51.45%
14.15%US$270.00US$142.00n/a19
Oct ’26US$153.12
US$219.53
+43.37%
12.11%US$270.00US$142.00n/a19
Sep ’26US$179.23
US$220.16
+22.84%
11.74%US$270.00US$142.00n/a19
Aug ’26US$181.43
US$219.94
+21.23%
12.06%US$270.00US$142.00n/a18
Jul ’26US$182.30
US$222.49
+22.05%
11.58%US$270.00US$142.00n/a18
Jun ’26US$190.90
US$222.99
+16.81%
11.87%US$270.00US$142.00n/a20
May ’26US$194.16
US$226.51
+16.66%
10.65%US$270.00US$190.00n/a20
Apr ’26US$189.83
US$239.74
+26.29%
7.73%US$270.00US$200.00n/a19
Mar ’26US$204.29
US$241.85
+18.38%
7.15%US$270.00US$200.00n/a19
Feb ’26US$205.52
US$217.33
+5.74%
8.09%US$250.00US$184.00US$134.9819
Jan ’26US$199.47
US$214.43
+7.50%
8.13%US$250.00US$184.00US$152.5019
Dec ’25US$207.54
US$202.64
-2.36%
8.52%US$250.00US$175.00US$146.8119
Nov ’25US$191.76
US$202.11
+5.40%
8.81%US$250.00US$175.00US$141.2719
Oct ’25US$162.87
US$182.32
+11.94%
12.84%US$250.00US$145.00US$153.1220
Sep ’25US$161.40
US$181.57
+12.49%
12.95%US$250.00US$145.00US$179.2320
Aug ’25US$148.23
US$181.62
+22.52%
13.67%US$250.00US$145.00US$181.4320
Jul ’25US$132.00
US$186.27
+41.11%
12.99%US$250.00US$145.00US$182.3020
Jun ’25US$142.17
US$194.52
+36.82%
9.96%US$250.00US$155.00US$190.9020
May ’25US$149.24
US$193.33
+29.54%
10.55%US$250.00US$155.00US$194.1621
Apr ’25US$167.70
US$192.61
+14.86%
11.07%US$250.00US$155.00US$189.8321
Mar ’25US$168.68
US$192.52
+14.13%
11.11%US$250.00US$155.00US$204.2921
Feb ’25US$160.00
US$202.59
+26.62%
14.39%US$280.00US$160.00US$205.5220
US$170.38
Fair Value
38.0% undervalued intrinsic discount
21
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/22 17:37
End of Day Share Price 2026/02/20 00:00
Earnings2025/12/31
Annual Earnings2025/06/30

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.

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 Github.

Analyst Sources

Paylocity Holding Corporation is covered by 38 analysts. 21 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
Raimo LenschowBarclays
Daniel JesterBMO Capital Markets Equity Research