Stock fact sheet · data as of
Paycom Software, Inc. (PAYC): fair value, margin of safety and Wheel Score
Ticker symbol PAYC · Technology · Software - Application · United States · Growth
Is PAYC undervalued?
PAYC closed at 268.16 on 5 Nov 2026 against a GLS average fair value of 267.93 - exactly at fair value, which our scans read as "fairly priced". 4 of 9 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
There is a wide gap between DDM (22.07) and Payback Time (524.77). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, PAYC is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 24, growth score 61, out of 100).
Nine valuation models for PAYC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 235.36 | -12% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 64.32 | -76% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 383.04 | +43% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 146.94 | -45% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 495.71 | +85% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 411.21 | +53% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 524.77 | +96% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 22.07 | -92% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 127.94 | -52% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -0.6301 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 230.25 | -14% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Paycom Software, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 9.5/10 puts PAYC among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
Returns on capital are high - ROIC 24.1%, ROE 26.2%, ROA 6.0% - with debt at 0.09 times equity and a free-cash-flow yield of 5.5%.
The dividend yield is 0.56% with a payout ratio of 14% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Recurring 99%, Implementation And Other 1% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 24.1% |
|---|---|---|---|
| GLS Moat | 9.5 / 10 | ROE | 26.2% |
| Debt / equity | 0.09 | ROA | 6.0% |
| Free-cash-flow yield | 5.5% | Payout ratio | 14% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 41: Weak
With a Wheel Score of 41 Paycom Software, Inc. sits in the Weak band. It fails filter 3, below fair value - trades right at our fair value; Value (weak) is its weakest part.
Implied volatility is 71% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. Chain open interest is 8,633 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.1M shares a day on a market cap of $12.1B, with a beta of 0.76 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades right at our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 0% above fair value | |
| Premium | Good | implied volatility 71% | |
| Moat | Strong | moat 9.5/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Fair | 1,190 contracts a day, 8,633 open interest | |
| Stability | Good | beta 0.76, $12.1B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for PAYC in the nightly calendar. The shares go ex-dividend on 23 Nov 2026 (0.3750 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to Paycom Software, Inc. by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BSY Bentley Systems, Incorporated | 43.64 | 27.74 | -57% | 46Weak | $12.7B |
| PCOR Procore Technologies, Inc. | 75.60 | 50.76 | -49% | 37Weak | $11.5B |
| CHYM Chime Financial, Inc. Class A Common Stock | 29.87 | 11.48 | -160% | 36Weak | $11.3B |
| HUBS HubSpot, Inc. | 216.41 | 190.18 | -14% | 28Weak | $11.1B |
| GRAB Grab Holdings Limited | 3.36 | 2.96 | -14% | 39Weak | $13.4B |
| DT Dynatrace, Inc. | 46.78 | 23.86 | -96% | 44Weak | $13.5B |
| FIG Figma, Inc. | 22.13 | 9.67 | -129% | 29Weak | $10.8B |
| FROG JFrog Ltd. | 86.34 | 19.33 | -347% | 30Weak | $10.5B |
| GWRE Guidewire Software, Inc. | 170.62 | 71.34 | -139% | 37Weak | $14.1B |
| DOCU DocuSign, Inc. | 80.50 | 73.92 | -9% | 43Weak | $15.0B |
| MANH Manhattan Associates, Inc. | 260.41 | 109.99 | -137% | 44Weak | $15.1B |
| FICO Fair Isaac Corporation | 701.03 | 1,161.29 | +40% | 48Weak | $15.1B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about PAYC
Is PAYC undervalued right now?
Not meaningfully: at 268.16 the stock trades within a few percent of the GLS average fair value of 267.93 (exactly at fair value, data as of 5 Nov 2026).
What is the Wheel Score of PAYC and what does it mean?
PAYC scores 41 out of 100 (Weak) - it fails Wheel Trade Filter 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for PAYC?
267.93 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Paycom Software, Inc. report earnings next?
No upcoming earnings date is recorded for PAYC in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does PAYC have listed options, and how liquid are they?
Yes. The nightly snapshot found 148 listed contracts with 8,633 open interest across all expiries and implied volatility of 71% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.