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Paylocity HoldingPCTY +1.11%75 Debt-to-EBITDA is 0.18 as of Mar. 2026, which is 58% below its 10-year median of 0.43. GuruFocus rates PCTY with a GF Score™ of 75/100 and a GF Value™ of $226.87 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,716 Software companies, Paylocity Holding ranks better than 74.36% 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 Paylocity Holding's Debt-to-EBITDA or its related term are showing as below:
PCTY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.02 Med: 0.43 Max: 1.74
Current: 0.28
During the past 13 years, the highest Debt-to-EBITDA Ratio of Paylocity Holding was 1.74. The lowest was 0.02. And the median was 0.43.
PCTY's Debt-to-EBITDA is ranked better than 74.36% of 1716
companies
in the Software industry
Industry Median: 1.085
vs PCTY: 0.28
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.
Paylocity Holding Debt-to-EBITDA Related Terms
Paylocity Holding Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Paylocity Holding'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.
PCTY vs DUOL, NAVN, CVLT: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Paylocity Holding'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.
Paylocity Holding Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Paylocity Holding's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Paylocity Holding'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.
Paylocity Holding (PCTY) has a Debt-to-EBITDA of 0.18 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 Paylocity Holding. This is 58% below median its historical median of 0.43. Over the past decade, Paylocity Holding's Debt-to-EBITDA has ranged from 0.02 to 1.74. According to the industry distribution chart, Paylocity Holding ranks #440 out of 1716 companies in the Software industry, placing it in the top 25.6%.
Is Paylocity Holding's Debt-to-EBITDA too high?
Paylocity Holding's current Debt-to-EBITDA of 0.18 is 58% below median its 10-year median of 0.43. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 1.74. The Software industry median Debt-to-EBITDA is 1.09. Paylocity Holding's value of 0.18 is 83.4% below this industry median. Based on the distribution chart, Paylocity Holding ranks #440 out of 1716 companies in the Software industry, which is above the industry midpoint. Overall, Paylocity Holding has a GF Score™ of 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paylocity Holding's Debt-to-EBITDA compare to DUOL and NAVN?
According to the Software industry distribution chart, Paylocity Holding ranks #440 out of 1716 companies for Debt-to-EBITDA. This puts Paylocity Holding in the upper half of its industry. The industry median Debt-to-EBITDA is 1.09. Paylocity Holding's value of 0.18 is 83.4% below this benchmark. Historically, Paylocity Holding's own Debt-to-EBITDA has ranged from 0.02 to 1.74 over the past decade. While the company's 10-year median is 0.43 vs. the industry median of 1.09, Paylocity Holding 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 1.09, based on 1,716 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. Paylocity Holding's current Debt-to-EBITDA of 0.18 is 83.4% 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 Paylocity Holding. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paylocity Holding's current Debt-to-EBITDA is 0.18, which is 58% below median its own 10-year median of 0.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paylocity Holding stock overvalued right now?
Based on GuruFocus' analysis, Paylocity Holding (PCTY) is currently considered Significantly Undervalued. The stock's GF Value™ is $226.87, compared to a current price of $127.29 — trading 43.9% below its estimated fair value. The current Debt-to-EBITDA is 0.18, which is 58% below median its 10-year median of 0.43 and 83.4% below the Software industry median of 1.09. Paylocity Holding's overall GF Score™ is 75/100 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 Paylocity Holding (PCTY), the current Debt-to-EBITDA is 0.18 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 Paylocity Holding (PCTY) Overvalued in 2026?
Based on GuruFocus' analysis, Paylocity Holding stock appears to be undervalued.
The current stock price of $127.29 is trading 43.9% below its estimated GF Value™ of $226.87.
GuruFocus considers Paylocity Holding to be Significantly Undervalued.
Key valuation signals for PCTY:
Debt-to-EBITDA: 0.18 (58% below median its 10-year median of 0.43)
GF Value™: $226.87 vs. price of $127.29 (43.9% below fair value)
Industry Position: 83.4% below the Software median (#440 of 1716)
No single metric tells the full story. See the PCTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paylocity is a cloud-based human capital management provider offering payroll, compliance, and human resources management solutions. With the addition of expense and IT management modules, Paylocity unifies back-office operations spanning HR, finance, and IT on a single platform and bills customers on a subscription basis. The firm's customer base skews toward the midmarket and is primarily based in the US. As of fiscal 2025, Paylocity has nearly 42,000 customers.
75GF Score
Get the complete analysis for PCTY
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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