Paycom Software (PAYC)
What the price implies
A reverse DCF: instead of guessing a fair value, it asks what growth today's price already assumes. How it works.
At a market value of $10.9B, Paycom Software's free cash flow of $408M (fiscal 2025) would need to grow about 9% a year for the stock to be worth today's price. That is slower than the company has grown its free cash flow over the last 9 years.
Assumes a 9% discount rate and 3% growth after year 10, on free cash flow (operating cash flow minus capital spending) from Paycom Software's SEC filings. Change any assumption, or model revenue and margins instead, in the Modeling tab, or try your own numbers in the reverse DCF calculator.
Fundamental grade
Five factors scored 1 to 9 from PAYC's latest numbers, weighted into one grade. It describes the business, not whether the stock is a buy.
Key numbers
Results from SEC filings
Fiscal years, from Paycom Software's 10-K filings. The deep dive has 15+ years, quarters and every line.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.1B | $1.4B | $1.7B | $1.9B | $2.1B |
| Net income | $196M | $281M | $341M | $502M | $453M |
| Free cash flow | $199M | $232M | $292M | $341M | $408M |
| EPS (diluted) | $3.37 | $4.84 | $5.88 | $8.92 | $8.08 |
| Operating margin | 24.0% | 27.5% | 26.6% | 33.7% | 27.6% |
Where the revenue comes from
Revenue by products, fiscal 2025.
Superinvestors who own PAYC
From each investor's latest 13F filing (what a 13F shows). 3 of the investors we track hold it.
| Investor | Last quarter | Value | % of portfolio | Quarter |
|---|---|---|---|---|
| Bill Nygren Harris Associates LP |
Added | $427M | 0.57% | Q2 2026 |
| Joel Greenblatt Gotham Asset Management |
Added | $46M | 0.11% | Q2 2026 |
| Cliff Asness AQR Capital Management |
Added | $38M | 0.01% | Q2 2026 |
Insider buying
Open-market purchases by Paycom Software's executives and directors in the last 12 months, from SEC Form 4 filings. What insider buying tells you.
| Date | Insider | Shares | Price | Value |
|---|---|---|---|---|
| Mar 13, 2026 | Gilbert Ray Cisneros, Jr. |
0 | $125.70 | — |
| Mar 13, 2026 | Gilbert Ray Cisneros, Jr. |
0 | $125.70 | — |
| Feb 24, 2026 | Ro Khanna |
0 | $119.24 | — |
| Feb 24, 2026 | Ro Khanna |
0 | $119.24 | — |
| Feb 17, 2026 | Ro Khanna |
0 | $122.38 | — |
| Feb 17, 2026 | Ro Khanna |
0 | $122.38 | — |
| Nov 3, 2025 | Ro Khanna |
0 | $184.89 | — |
| Nov 3, 2025 | Ro Khanna |
0 | $184.89 | — |
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In the full deep dive
Questions
What growth does Paycom Software's stock price imply?
At a market value of $10.9B, Paycom Software would need its free cash flow to grow about 9% a year for 10 years (discounted at 9%, 3% growth after that) to be worth today's price. Over the last 9 years its free cash flow grew 25% a year.
Are Paycom Software insiders buying the stock?
8 open-market insider purchases of PAYC in the last 12 months, from SEC Form 4 filings.
Which superinvestors own Paycom Software?
3 of the superinvestors Investingly tracks hold PAYC in their latest 13F, including Bill Nygren, Joel Greenblatt, Cliff Asness.
Prices and ratios as of Oct 7, 2026; statements from SEC filings. Information only, not investment advice. Superinvestor holdings come from 13F filings, which are filed up to 45 days after each quarter ends.