Paylocity

OVERVALUEDPCTY · NASDAQ · Technology
PCTY·NASDAQ·Technology
OVERVALUED
Paylocity
14.0%downside
MARKET PRICE
$105.29
FAIR PRICE
$90.50
MARGIN
$14.79
UNDERVALUEDFAIROVERVALUED
P/E RATIO
25.5x
DIV. YIELD
N/A
ROE
20.5%
MARKET CAP
$6B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

14.0%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$105.29

FAIR PRICE

$90.50

MARGIN

$14.79

UNDERVALUEDFAIROVERVALUED

P/E Ratio

25.5x

What is P/E? →

Div. Yield

N/A

ROE

20.5%

Strong

Market Cap

$6B

Mid-cap

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FPI RATING

6.3/ 10

Low debt levels and attractive valuation, but below-average fundamental quality.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$72.40CONSERVATIVE ENTRY
$90.50FAIR PRICE
$105.29MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$72.40

Fair price × 0.80

DISTANCE

31.2%

Price to entry level

At the current price of $105.29, PCTY trades 31.2% above the conservative entry level of $72.40. This entry level represents a 20% margin of safety below the calculated fair price of $90.50 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate PCTY's fair price

Paylocity's fair price of $90.50 is derived from a blended model that combines DCF analysis (50%), relative valuation against Technology peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $105.29, PCTY trades 14.0% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting PCTY's risk profile.

RELATIVE · 30%

Comparing PCTY's valuation multiples against Technology peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for PCTY, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate PCTY's fair value with your own inputs.

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FAQ

What is the fair price of PCTY?+

Based on our blended model combining DCF analysis (50%), relative valuation against Technology peers (30%), and analyst consensus (20%), the fair price for Paylocity is $90.50. At the current market price of $105.29, PCTY trades 14.0% above its calculated fair value.

Is PCTY overvalued or undervalued?+

Paylocity is currently overvalued based on our valuation model. The stock trades at $105.29, which is 14.0% above the fair price of $90.50. The P/E ratio of 25.5x is a key metric in the valuation.

What is the margin of safety for PCTY?+

With a 20% margin of safety applied to the fair price of $90.50, the conservative entry level for PCTY is $72.40. At the current market price of $105.29, the stock trades 31.2% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is PCTY's fair price updated?+

We update fair price calculations for PCTY daily after market close. The current fair price of $90.50 incorporates the latest market data and sector multiples.

What factors affect PCTY's fair price calculation?+

PCTY's fair price of $90.50 is derived from DCF analysis (50% weight), relative valuation against Technology peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 25.5x, ROE of 20.5%.

Is PCTY a good buy right now?+

At $105.29, PCTY trades 14.0% above our fair value estimate of $90.50. The stock is currently overvalued. ROE stands at 20.5% (strong). Fair Price Index provides valuation data — always do your own research before investing.

Does PCTY pay dividends?+

PCTY does not currently pay a dividend.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.