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 -0.48%84 Debt-to-Equity is 1.72 as of Jun. 2026, which is 3340% above its 10-year median of 0.05. GuruFocus rates PAYC with a GF Score™ of 84/100 and a GF Value™ of $266.81 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,243 Software companies, Paycom Software ranks worse than 84.04% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Paycom Software's Debt-to-Equity or its related term are showing as below:
PAYC'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.02 Med: 0.05 Max: 1.72
Current: 1.72
During the past 13 years, the highest Debt-to-Equity Ratio of Paycom Software was 1.72. The lowest was 0.02. And the median was 0.05.
PAYC's Debt-to-Equity is ranked worse than 84.04% of 2243
companies
in the Software industry
Industry Median: 0.2
vs PAYC: 1.72
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Paycom Software Debt-to-Equity Related Terms
Paycom Software Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Paycom Software's Debt-to-Equity 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 TTAN, PCTY, IDCC: Debt-to-Equity Comparison
For the Software - Application subindustry, Paycom Software's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Software Industry
For the Software industry and Technology sector, Paycom Software's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Paycom Software's Debt-to-Equity 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.
Paycom Software (PAYC) has a Debt-to-Equity of 1.72 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Paycom Software and its competitors. This is 3340% above median its historical median of 0.05. Over the past decade, Paycom Software's Debt-to-Equity has ranged from 0.02 to 1.72. According to the industry distribution chart, Paycom Software ranks #1885 out of 2243 companies in the Software industry, placing it in the top 84%.
Is Paycom Software's Debt-to-Equity too high?
Paycom Software's current Debt-to-Equity of 1.72 is 3340% above median its 10-year median of 0.05. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 1.72. The Software industry median Debt-to-Equity is 0.20. Paycom Software's value of 1.72 is 760% above this industry median. Based on the distribution chart, Paycom Software ranks #1885 out of 2243 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Paycom Software has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paycom Software's Debt-to-Equity compare to TTAN and PCTY?
According to the Software industry distribution chart, Paycom Software ranks #1885 out of 2243 companies for Debt-to-Equity. This places Paycom Software in the lower half of its industry. The industry median Debt-to-Equity is 0.20. Paycom Software's value of 1.72 is 760% above this benchmark. Historically, Paycom Software's own Debt-to-Equity has ranged from 0.02 to 1.72 over the past decade. While the company's 10-year median is 0.05 vs. the industry median of 0.20, Paycom Software has consistently been above 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-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.20, based on 2,243 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paycom Software's current Debt-to-Equity of 1.72 is 760% above 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Paycom Software and its competitors. For the Software industry, the median Debt-to-Equity is 0.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paycom Software's current Debt-to-Equity is 1.72, which is 3340% above median its own 10-year median of 0.05. 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 Modestly Undervalued. The stock's GF Value™ is $266.81, compared to a current price of $214.94 — trading 19.4% below its estimated fair value. The current Debt-to-Equity is 1.72, which is 3340% above median its 10-year median of 0.05 and 760% above the Software industry median of 0.20. Paycom Software's overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Paycom Software (PAYC), the current Debt-to-Equity is 1.72 as of Jun. 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 $214.94 is trading 19.4% below its estimated GF Value™ of $266.81.
GuruFocus considers Paycom Software to be Modestly Undervalued.
Key valuation signals for PAYC:
Debt-to-Equity: 1.72 (3340% above median its 10-year median of 0.05)
GF Value™: $266.81 vs. price of $214.94 (19.4% below fair value)
Industry Position: 760% above the Software median (#1885 of 2243)
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.
84GF Score
Get the complete analysis for PAYC
Debt-to-Equity 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 
