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Paylocity HoldingPCTY +5.01%75 Debt-to-Equity is 0.11 as of Mar. 2026, which is 8% below its 10-year median of 0.12. GuruFocus rates PCTY with a GF Score™ of 75/100 and a GF Value™ of $227.21 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,247 Software companies, Paylocity Holding ranks better than 63.15% 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 Paylocity Holding's Debt-to-Equity or its related term are showing as below:
PCTY'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0 Med: 0.12 Max: 0.46
Current: 0.11
During the past 13 years, the highest Debt-to-Equity Ratio of Paylocity Holding was 0.46. The lowest was 0.00. And the median was 0.12.
PCTY's Debt-to-Equity is ranked better than 63.15% of 2247
companies
in the Software industry
Industry Median: 0.19
vs PCTY: 0.11
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.
Paylocity Holding Debt-to-Equity Related Terms
Paylocity Holding Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Paylocity Holding'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.
PCTY vs TTAN, IDCC, PAYC: Debt-to-Equity Comparison
For the Software - Application subindustry, Paylocity Holding'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.
Paylocity Holding Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Paylocity Holding's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Paylocity Holding'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.
Paylocity Holding (PCTY) has a Debt-to-Equity of 0.11 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Paylocity Holding and its competitors. This is near median its historical median of 0.12. According to the industry distribution chart, Paylocity Holding ranks #828 out of 2247 companies in the Software industry, placing it in the top 36.8%.
Is Paylocity Holding's Debt-to-Equity too high?
Paylocity Holding's current Debt-to-Equity of 0.11 is near median its 10-year median of 0.12. The Software industry median Debt-to-Equity is 0.19. Paylocity Holding's value of 0.11 is 42.1% below this industry median. Based on the distribution chart, Paylocity Holding ranks #828 out of 2247 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-Equity compare to TTAN and IDCC?
According to the Software industry distribution chart, Paylocity Holding ranks #828 out of 2247 companies for Debt-to-Equity. This puts Paylocity Holding in the upper half of its industry. The industry median Debt-to-Equity is 0.19. Paylocity Holding's value of 0.11 is 42.1% below this benchmark. While the company's 10-year median is 0.12 vs. the industry median of 0.19, 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-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.19, based on 2,247 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. Paylocity Holding's current Debt-to-Equity of 0.11 is 42.1% 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-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 Paylocity Holding and its competitors. For the Software industry, the median Debt-to-Equity is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paylocity Holding's current Debt-to-Equity is 0.11, which is near median its own 10-year median of 0.12. 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 $227.21, compared to a current price of $136.68 — trading 39.8% below its estimated fair value. The current Debt-to-Equity is 0.11, which is near median its 10-year median of 0.12 and 42.1% below the Software industry median of 0.19. 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current Debt-to-Equity is 0.11 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 $136.68 is trading 39.8% below its estimated GF Value™ of $227.21.
GuruFocus considers Paylocity Holding to be Significantly Undervalued.
Key valuation signals for PCTY:
Debt-to-Equity: 0.11 (near median its 10-year median of 0.12)
GF Value™: $227.21 vs. price of $136.68 (39.8% below fair value)
Industry Position: 42.1% below the Software median (#828 of 2247)
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
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