Paylocity Holding Corporation
We are a leading cloud-based provider of human capital management, or HCM, payroll and spend management software solutions that deliver a comprehensive platform for the modern workforce. Our platform offers an intuitive, easy-to-use product suite that helps businesses streamline and automate HR, payroll and spend management processes, attract and retain talent, and build culture and connection …
$166.32
+$0.07 (+0.04%)
EOD Oct 16, 2026
Margins and capital returns are both well above average: 21.79% operating margin, ROIC at 19.13%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue up 11.0% YoY with margins expanding 2.7pp.
At 34x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
33.8x earnings, 17.8x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.77B
▲ +11.0% YoY
Net Income (TTM)
$270M
▲ +18.8% YoY
Op. Margin
21.79%
▲ +2.7pp YoY
ROIC
19.13%
▲ +1.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$497M
▲ +22.7% YoY
Op. Cash Flow (TTM)
$533M
▲ +27.5% YoY
Net Debt
-$139M
Net Cash Position
Cash & Equiv.
$272M
5Y CAGR: +22.7%
5Y CAGR: +33.9%
Continue Research
SourceComputed from the 10-Q filed 29 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 8 Aug 2026. How this is calculated.
Price from market data, last close as of 16 Oct 2026. Fiscal year ends Jun. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Paylocity Holding (PCTY) overvalued?
At a P/E of 33.8 and a price-to-free-cash-flow of 17.8, Paylocity Holding (PCTY) trades below a two-stage DCF intrinsic value of about $460.68 per share, so at $166.32 the stock looks undervalued (177.0% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Paylocity Holding scores 91/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Paylocity Holding's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $460.68 per share for PCTY, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $345.51. At today's $166.32, that puts the stock about 177.0% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Paylocity Holding a high-quality business?+
Paylocity Holding scores 91 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 21.8% operating margin and a 19.1% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Paylocity Holding a good stock to buy right now?+
That depends on valuation and quality together, not either alone. PCTY currently trades below its estimated intrinsic value and scores 91/100 on quality (high-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Services-Prepackaged Software
Spot a number that looks wrong?
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.