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Paylocity HoldingPCTY +3.91%75 EV-to-EBIT is 17.79 as of Jul. 26, 2026, which is 84% below its 10-year median of 114.59. GuruFocus rates PCTY with a GF Score™ of 75/100 and a GF Value™ of $227.12 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,770 Software companies, Paylocity Holding ranks worse than 59.32% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Paylocity Holding's Enterprise Value for the quarter that ended in Mar. 2026 was $5,619 Mil.
Paylocity Holding's 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.
Paylocity Holding EV-to-EBIT Related Terms
Paylocity Holding EV-to-EBIT Historical Data
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The historical data trend for Paylocity Holding's EV-to-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.
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.
Paylocity Holding's current Enterprise Value is $6,545 Mil.
Paylocity Holding's 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.
Paylocity Holding (PCTY) has a EV-to-EBIT of 17.79 as of Jul. 26, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Paylocity Holding and its competitors. This is 84% below median its historical median of 114.59. According to the industry distribution chart, Paylocity Holding ranks #1050 out of 1770 companies in the Software industry, placing it in the top 59.3%.
Is Paylocity Holding's EV-to-EBIT too high?
Paylocity Holding's current EV-to-EBIT of 17.79 is 84% below median its 10-year median of 114.59. The Software industry median EV-to-EBIT is 13.95. Paylocity Holding's value of 17.79 is 27.6% above this industry median. Based on the distribution chart, Paylocity Holding ranks #1050 out of 1770 companies in the Software industry, which is below 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 EV-to-EBIT compare to DUOL and NAVN?
According to the Software industry distribution chart, Paylocity Holding ranks #1050 out of 1770 companies for EV-to-EBIT. This places Paylocity Holding in the lower half of its industry. The industry median EV-to-EBIT is 13.95. Paylocity Holding's value of 17.79 is 27.6% above this benchmark. While the company's 10-year median is 114.59 vs. the industry median of 13.95, Paylocity Holding 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 13.95, based on 1,770 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paylocity Holding's current EV-to-EBIT of 17.79 is 27.6% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Paylocity Holding and its competitors. For the Software industry, the median EV-to-EBIT is 13.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paylocity Holding's current EV-to-EBIT is 17.79, which is 84% below median its own 10-year median of 114.59. 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 $227.12, compared to a current price of $125.32 — trading 44.8% below its estimated fair value. The current EV-to-EBIT is 17.79, which is 84% below median its 10-year median of 114.59 and 27.6% above the Software industry median of 13.95. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current EV-to-EBIT is 17.79 as of Jul. 26, 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 $125.32 is trading 44.8% below its estimated GF Value™ of $227.12.
GuruFocus considers Paylocity Holding to be Significantly Undervalued.
Key valuation signals for PCTY:
EV-to-EBIT: 17.79 (84% below median its 10-year median of 114.59)
GF Value™: $227.12 vs. price of $125.32 (44.8% below fair value)
Industry Position: 27.6% above the Software median (#1050 of 1770)
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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