Paycom Software, Inc.Opportunity Rank #26(PAYC) Intrinsic Value & DCF Analysis (2026)
Current Price
$138.43
Last updated: May 08, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
-1 vs previous
Trend Score
As of 2026-05-08
The intrinsic value of Paycom Software, Inc. (PAYC) is estimated at $399.00 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $138.43, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 10.10% long-term growth rate and a 10.00% discount rate (calculated: 7.66%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of Paycom Software, Inc. (PAYC) is estimated at $399.00 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $138.43, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 10.10% long-term growth rate and a 10.00% discount rate (calculated: 7.66%), reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Monitor whether valuation discount remains above 10%.
- Track ROIC vs WACC spread for sustained improvement.
- Follow narrative trend for meaningful shifts in the score direction.
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Paycom Software, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Paycom Software, Inc.Technology
Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking, and Microfence, a proprietary Bluetooth. Its HCM solution also offers payroll applications comprising better employee transaction interface, payroll and tax management, Paycom pay, expense management, mileage tracker/fixed and variable rates, garnishment management, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning and content subscriptions, as well as my analytics, which offer employment predictor reporting. In addition, its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration/benefits to carrier; COBRA administration; personnel action and performance discussion forms; surveys; and affordable care act applications, as well as Clue, which securely collect, track, and manage the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.