Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Paycom SoftwarePAYC +4.79%81 Debt-to-EBITDA is 0.71 as of Mar. 2026, which is 446% above its 10-year median of 0.13. GuruFocus rates PAYC with a GF Score™ of 81/100 and a GF Value™ of $256.77 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,722 Software companies, Paycom Software ranks better than 53.66% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Paycom Software's Debt-to-EBITDA or its related term are showing as below:
PAYC'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.06 Med: 0.13 Max: 0.91
Current: 0.91
During the past 13 years, the highest Debt-to-EBITDA Ratio of Paycom Software was 0.91. The lowest was 0.06. And the median was 0.13.
PAYC's Debt-to-EBITDA is ranked better than 53.66% of 1722
companies
in the Software industry
Industry Median: 1.08
vs PAYC: 0.91
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Paycom Software Debt-to-EBITDA Related Terms
Paycom Software Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Paycom Software's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PAYC vs ESTC, CVLT, NAVN: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Paycom Software's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paycom Software Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Paycom Software's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Paycom Software's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Paycom Software (PAYC) has a Debt-to-EBITDA of 0.71 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Paycom Software. This is 446% above median its historical median of 0.13. Over the past decade, Paycom Software's Debt-to-EBITDA has ranged from 0.06 to 0.91. According to the industry distribution chart, Paycom Software ranks #798 out of 1722 companies in the Software industry, placing it in the top 46.3%.
Is Paycom Software's Debt-to-EBITDA too high?
Paycom Software's current Debt-to-EBITDA of 0.71 is 446% above median its 10-year median of 0.13. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 0.91. The Software industry median Debt-to-EBITDA is 1.08. Paycom Software's value of 0.71 is 34.3% below this industry median. Based on the distribution chart, Paycom Software ranks #798 out of 1722 companies in the Software industry, which is above the industry midpoint. Overall, Paycom Software has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paycom Software's Debt-to-EBITDA compare to ESTC and CVLT?
According to the Software industry distribution chart, Paycom Software ranks #798 out of 1722 companies for Debt-to-EBITDA. This puts Paycom Software in the upper half of its industry. The industry median Debt-to-EBITDA is 1.08. Paycom Software's value of 0.71 is 34.3% below this benchmark. Historically, Paycom Software's own Debt-to-EBITDA has ranged from 0.06 to 0.91 over the past decade. While the company's 10-year median is 0.13 vs. the industry median of 1.08, Paycom Software has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.08, based on 1,722 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paycom Software's current Debt-to-EBITDA of 0.71 is 34.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Paycom Software. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paycom Software's current Debt-to-EBITDA is 0.71, which is 446% above median its own 10-year median of 0.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paycom Software stock overvalued right now?
Based on GuruFocus' analysis, Paycom Software (PAYC) is currently considered Significantly Undervalued. The stock's GF Value™ is $256.77, compared to a current price of $145.35 — trading 43.4% below its estimated fair value. The current Debt-to-EBITDA is 0.71, which is 446% above median its 10-year median of 0.13 and 34.3% below the Software industry median of 1.08. Paycom Software's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Paycom Software (PAYC), the current Debt-to-EBITDA is 0.71 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paycom Software (PAYC) Overvalued in 2026?
Based on GuruFocus' analysis, Paycom Software stock appears to be undervalued.
The current stock price of $145.35 is trading 43.4% below its estimated GF Value™ of $256.77.
GuruFocus considers Paycom Software to be Significantly Undervalued.
Key valuation signals for PAYC:
Debt-to-EBITDA: 0.71 (446% above median its 10-year median of 0.13)
GF Value™: $256.77 vs. price of $145.35 (43.4% below fair value)
Industry Position: 34.3% below the Software median (#798 of 1722)
No single metric tells the full story. See the PAYC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1998, Paycom is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, HR management, as well as time and labor. The company services businesses of all sizes within the United States and internationally. The company primarily generates revenue through the sale of subscriptions providing access to its HCM platform. To a lesser extent, the company also generates revenue from implementation services provided to customers as well as interest income generated from customer funds. As of fiscal 2024, the company serviced slightly over 37,500 customers and stored data on over 7 million employees.
81GF Score
Get the complete analysis for PAYC
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PAYC has been successfully added to your 
