Paylocity Stock Valuation

PCTY
 Stock
  

USD 215.14  0.13  0.06%   

Do you wonder what the value of Paylocity Holdings Corp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Paylocity Holdings, is its stock price multiplied by the total number of shares outstanding, calculating Paylocity Holdings' enterprise value requires a different approach. It uses Paylocity Holdings' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to rise to about 94.5 M in 2022. Enterprise Value is likely to rise to about 6.1 B in 2022.
Paylocity Holdings Corp holds a recent Real Value of $249.96 per share. The prevailing price of the company is $215.14. At this time, the company appears to be undervalued. Our model determines the value of Paylocity Holdings Corp from analyzing the company fundamentals such as Shares Outstanding of 55.03 M, return on equity of 16.65 %, and Operating Margin of 9.94 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support acquiring undervalued entities and dropping overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
Paylocity Holdings Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Paylocity Holdings's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Paylocity Most Recent Valuation Data

Price Book
19.6
Enterprise Value
12 B
Enterprise Value Ebitda
89.01
Price Sales
12.96
Forward PE
78.74
Trailing PE
130.39
Undervalued
Today 215.14
Please note that Paylocity Holdings' price fluctuation is very steady at this time. Calculation of the real value of Paylocity Holdings Corp is based on 3 months time horizon. Increasing Paylocity Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Paylocity Holdings Corp is useful when determining the fair value of the Paylocity stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Paylocity Holdings. Since Paylocity Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Paylocity Stock. However, Paylocity Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
193.51
Downside
249.96
Real Value
252.92
Upside
Estimating the potential upside or downside of Paylocity Holdings Corp helps investors to forecast how Paylocity stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Paylocity Holdings more accurately as focusing exclusively on Paylocity Holdings' fundamentals will not take into account other important factors:
Earnings
Estimates (6)
LowProjected EPSHigh
0.901.021.09
Details
Hype
Prediction
LowEstimated ValueHigh
212.00214.96217.92
Details
Naive
Forecast
LowNext ValueHigh
214.93217.89220.85
Details
12 Analysts
Consensus
LowTarget PriceHigh
206.00285.54355.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Paylocity Holdings' intrinsic value based on its ongoing forecasts of Paylocity Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Paylocity Holdings' closest peers. When choosing an evaluation method for Paylocity Holdings Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Paylocity Holdings Investments

36.37 Million

Paylocity Valuation Drivers Correlation

Many accounts on the financial statements of Paylocity Holdings Corp are highly interrelated and sometimes correlated. Consequently, when conducting Paylocity's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Paylocity
Click cells to compare fundamentals

Paylocity Valuation Trend

Knowing Paylocity Holdings' actual value is paramount for traders to make sound investment determinations. Paylocity Holdings' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Paylocity Holdings' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Paylocity Holdings' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Paylocity Market Cap

Paylocity Holdings Corp is rated below average in market capitalization category among related companies. Market capitalization of Software—Application industry is at this time estimated at about 444.65 Billion. Paylocity Holdings holds roughly 11.83 Billion in market capitalization claiming about 2.66% of equities listed under Software—Application industry.
Capitalization  Total debt  Revenue  Valuation  Workforce

Paylocity Holdings Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Paylocity Holdings's current stock value. Our valuation model uses many indicators to compare Paylocity Holdings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Paylocity Holdings competition to find correlations between indicators driving Paylocity Holdings's intrinsic value. More Info.
Paylocity Holdings Corp is regarded third in price to earning category among related companies. It is regarded second in price to sales category among related companies fabricating about  0.08  of Price to Sales per Price to Earning. The ratio of Price to Earning to Price to Sales for Paylocity Holdings Corp is roughly  13.04 . Price to Sales Ratio is likely to drop to 11.75 in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Paylocity Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Paylocity Holdings' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Paylocity Holdings' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Paylocity Holdings' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Paylocity Holdings and how it compares across the competition.

About Paylocity Holdings Valuation

The stock valuation mechanism determines the current worth of Paylocity Holdings Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Paylocity Holdings Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Paylocity Holdings Corp based exclusively on its fundamental and basic technical indicators. By analyzing Paylocity Holdings's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Paylocity Holdings's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Paylocity Holdings. We calculate exposure to Paylocity Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Paylocity Holdings's related companies.
Fiscal Year End
June
Industry
Software-Application
Concentration
Application Software
Full Time Employees
5.3 K
Service Category
Software
Employer Id Number
46-4066644
Last ReportedProjected for 2022
Gross Profit360.8 M389.3 M
Profit Margin 10.65  11.49 

Paylocity Holdings Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Paylocity Holdings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.04
Earnings Quarterly Growth27.50%
Revenue Growth36.70%
Enterprise Value To Ebitda113.77
Earnings Growth29.20%
Enterprise Value To Revenue14.63

Paylocity Holdings Current Valuation Indicators

Valuation refers to the process of determining the present value of Paylocity Holdings Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Paylocity we look at many different elements of the entity such as Paylocity's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Paylocity Holdings' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Paylocity Holdings' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Paylocity Holdings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Paylocity Holdings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Paylocity Holdings' worth.
Please check Your Equity Center. You can also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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When running Paylocity Holdings Corp price analysis, check to measure Paylocity Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Paylocity Holdings is operating at the current time. Most of Paylocity Holdings' value examination focuses on studying past and present price action to predict the probability of Paylocity Holdings' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Paylocity Holdings' price. Additionally, you may evaluate how the addition of Paylocity Holdings to your portfolios can decrease your overall portfolio volatility.
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Is Paylocity Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Paylocity Holdings. If investors know Paylocity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Paylocity Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.018) 
Market Capitalization
12 B
Quarterly Revenue Growth YOY
0.39
Return On Assets
0.0148
Return On Equity
0.17
The market value of Paylocity Holdings Corp is measured differently than its book value, which is the value of Paylocity that is recorded on the company's balance sheet. Investors also form their own opinion of Paylocity Holdings' value that differs from its market value or its book value, called intrinsic value, which is Paylocity Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Paylocity Holdings' market value can be influenced by many factors that don't directly affect Paylocity Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Paylocity Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine Paylocity Holdings value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Paylocity Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.