Paylocity Holding Corporation (PCTY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+110.9%

$369.07

vs $175.04 price

Levered DCF

$438.15

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.53

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	20.95×	44.41×	35.87×	72.94×	105.71×	146.77×	121.57×	95.12×
P/B	4.63×	8.17×	7.18×	12.2×	15.65×	21.73×	19.88×	16.67×
P/S	3.19×	6.32×	5.29×	8.75×	11.26×	16.3×	13.92×	10.98×
EV / EBITDA	11.03×	23.48×	19.97×	45.68×	71.01×	102.29×	74.39×	55.1×
Gross margin	69.2%	68.8%	68.5%	68.8%	66.3%	65.5%	67.6%	67.1%
Operating margin	21.8%	19.1%	18.5%	13.2%	9.9%	9.1%	11.8%	12.0%
Net margin	15.2%	14.2%	14.7%	12.0%	10.6%	11.1%	11.5%	11.5%
Current ratio	1.09×	1.14×	1.13×	1.1×	1.03×	1.09×	1.18×	1.1×
Debt / equity	0.1×	0.18×	0.05×	0.08×	0.13×	0.16×	0.46×	0×
Interest coverage	0×	23.29×	343.13×	206.15×	169.87×	0×	95.21×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	22.1%	18.4%	20.0%	16.7%	14.8%	14.8%	16.4%	17.5%
Return on invested capital	18.4%	15.0%	17.1%	14.8%	12.1%	10.5%	10.9%	14.9%
Return on assets	5.5%	5.2%	4.9%	3.8%	1.9%	2.9%	3.2%	3.0%
Free cash flow yield	8.8%	3.4%	4.9%	2.1%	1.1%	0.8%	1.2%	1.6%
Earnings yield	4.8%	2.3%	2.8%	1.4%	0.9%	0.7%	0.8%	1.0%
Enterprise value	$5.5B	$9.9B	$7.1B	$10.1B	$9.5B	$10.2B	$7.7B	$5B
Net debt / EBITDA	-0.3×	-0.43×	-0.98×	-0.99×	-0.46×	-1.27×	-0.67×	-1.44×
Cash conversion cycle (days)	3	-3	1	2	-4	-3	-0	-6