PCTY (Paylocity Holding) EBIT: $368 Mil (TTM As of Mar. 2026)


PCTY Paylocity Holding Corp PCTY
71 GF Score
Price $102.32
GF Value $225.43
Valuation Possible Value Trap
! 3 Warning Signs
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What is Paylocity Holding EBIT?

Paylocity Holding PCTY -1.42% 71 EBIT is $368 Mil as of Mar. 2026. GuruFocus rates PCTY with a GF Score™ of 71/100 and a GF Value™ of $225.43 (Possible Value Trap). The stock has 3 warning signs investors should review.

Paylocity Holding's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $157 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $368 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Paylocity Holding's annualized ROC % for the quarter that ended in Mar. 2026 was 7.62%. Paylocity Holding's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 457.22%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Paylocity Holding's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 6.92%.


Paylocity Holding  (NAS:PCTY) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Paylocity Holding's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=627.916 * ( 1 - 29.16% )/( (6683.025 + 4989.123)/ 2 )
=444.8156944/5836.074
=7.62 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6972.784 - 127.264 - ( 162.495 - max(0, 5678.054 - 5893.928+162.495))
=6683.025

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5444.375 - 155.524 - ( 299.728 - max(0, 4037.807 - 4358.34+299.728))
=4989.123

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Paylocity Holding's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=627.916/( ( (88.244 + max(61.564, 0)) + (91.676 + max(33.181000000001, 0)) )/ 2 )
=627.916/( ( 149.808 + 124.857 )/ 2 )
=627.916/137.3325
=457.22 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(44.014 + 0 + 5687.419) - (127.264 + 43.423 + 5499.182)
=61.564

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(51.373 + 0 + 4010.244) - (155.524 + 38.971 + 3833.941)
=33.181000000001

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Paylocity Holding's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=367.798/5313.196
=6.92 %

* 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 EBIT Related Terms


Paylocity Holding EBIT Historical Data

* Premium members only.

The historical data trend for Paylocity Holding's EBIT 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.

Paylocity Holding EBIT Chart

Paylocity Holding Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 58.04 84.59 155.03 260.09 304.02

Paylocity Holding Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 127.03 66.23 74.21 70.38 156.98

PCTY vs PEGA, PAYC, IDCC: EBIT Comparison

For the Software - Application subindustry, Paylocity Holding's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Paylocity Holding's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Paylocity Holding's EV-to-EBIT falls into.


PCTY
71GF Score
Paylocity Holding Corp PCTY
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Paylocity Holding EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $368 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $368 Mil mean?
Paylocity Holding (PCTY) has a EBIT of $368 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Paylocity Holding.
Is Paylocity Holding's EBIT too high?
Paylocity Holding's current EBIT is $368 Mil. Overall, Paylocity Holding has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Paylocity Holding's EBIT compare to PEGA and PAYC?
Paylocity Holding's EBIT of $368 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Paylocity Holding. Paylocity Holding's current EBIT is $368 Mil. 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 Possible Value Trap. The stock's GF Value™ is $225.43, compared to a current price of $102.32 — trading 54.6% below its estimated fair value. The current EBIT is $368 Mil. Paylocity Holding's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current EBIT is $368 Mil 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 $102.32 is trading 54.6% below its estimated GF Value™ of $225.43. GuruFocus considers Paylocity Holding to be Possible Value Trap.

Key valuation signals for PCTY:

  • EBIT: $368 Mil
  • GF Value™: $225.43 vs. price of $102.32 (54.6% below fair value)
  • GF Score™: 71/100 with 3 warning signs

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 Holding Business Description

Address 1400 American Lane, Schaumburg, IL, USA, 60173
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.
71GF Score

Get the complete analysis for PCTY

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$102.32
Price
$225.43
GF Value