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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 …
$126.00
$0.86 (-0.68%)
EOD Jul 17, 2026
19.06% operating margin is respectable but not wide. ROIC at 17.49%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 13.7%, still solid.
At 27x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
26.8x earnings, 14.0x 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.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.73B
▲ +13.7% YoY
Net Income (TTM)
$258M
▲ +9.8% YoY
Op. Margin
21.29%
▲ +0.5pp YoY
ROIC
19.62%
▼ -1.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$487M
▲ +10.5% YoY
Op. Cash Flow (TTM)
$508M
▲ +8.7% YoY
Net Debt
-$165M
Net Cash Position
Cash & Equiv.
$300M
5Y CAGR: +23.2%
5Y CAGR: +33.4%
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At a P/E of 26.8 and a price-to-free-cash-flow of 14.0, Paylocity Holding (PCTY) trades below a two-stage DCF intrinsic value of about $455.95 per share, so at $126.00 the stock looks undervalued (261.9% 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 93/100 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. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $455.95 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 $341.96. At today's $126.00, that puts the stock about 261.9% 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.
Paylocity Holding scores 93 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 21.3% operating margin and a 19.6% 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.
That depends on valuation and quality together, not either alone. PCTY currently trades below its estimated intrinsic value and scores 93/100 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.