PAYC (Paycom Software) Margin of Safety % (DCF Earnings Based): 58.30% (As of Jun. 25, 2026)


PAYC Paycom Software Inc PAYC
85 GF Score
Price $125.09
GF Value $253.58
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Paycom Software Margin of Safety % (DCF Earnings Based)?

Paycom Software PAYC -1.67% 85 Margin of Safety % (DCF Earnings Based) is 58.30% as of Jun. 25, 2026. GuruFocus rates PAYC with a GF Score™ of 85/100 and a GF Value™ of $253.58 (Significantly Undervalued). The stock has 3 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-25), Paycom Software's Predictability Rank is 5-Stars. Paycom Software's intrinsic value calculated from the Discounted Earnings model is $300.00 and current share price is $125.09. Consequently,

Paycom Software's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is 58.30%.

PAYC vs IDCC, ESTC, PCTY: Margin of Safety % (DCF Earnings Based) Comparison

For the Software - Application subindustry, Paycom Software's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) vs Software Industry

For the Software industry and Technology sector, Paycom Software's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Paycom Software's Margin of Safety % (DCF Earnings Based) falls into.


PAYC
85GF Score
Paycom Software Inc PAYC
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Paycom Software Margin of Safety % (DCF Earnings Based) Calculation

Paycom Software's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(300.00-125.09)/300.00
=58.30 %

* 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.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of 58.30% mean?
Paycom Software (PAYC) has a Margin of Safety % (DCF Earnings Based) of 58.30% as of Jun. 25, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Paycom Software.
Is Paycom Software's Margin of Safety % (DCF Earnings Based) too high?
Paycom Software's current Margin of Safety % (DCF Earnings Based) is 58.30%. Overall, Paycom Software has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paycom Software's Margin of Safety % (DCF Earnings Based) compare to IDCC and ESTC?
Paycom Software's Margin of Safety % (DCF Earnings Based) of 58.30% 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 Margin of Safety % (DCF Earnings Based) for a Software company?
A good Margin of Safety % (DCF Earnings Based) depends on the Software industry context. However, Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Paycom Software. Paycom Software's current Margin of Safety % (DCF Earnings Based) is 58.30%. 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 Significantly Undervalued. The stock's GF Value™ is $253.58, compared to a current price of $125.09 — trading 50.7% below its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is 58.30%. Paycom Software's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Paycom Software (PAYC), the current Margin of Safety % (DCF Earnings Based) is 58.30% as of Jun. 25, 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 $125.09 is trading 50.7% below its estimated GF Value™ of $253.58. GuruFocus considers Paycom Software to be Significantly Undervalued.

Key valuation signals for PAYC:

  • Margin of Safety % (DCF Earnings Based): 58.30%
  • GF Value™: $253.58 vs. price of $125.09 (50.7% below fair value)
  • GF Score™: 85/100 with 3 warning signs

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.

Paycom Software Business Description

Address 7501 W. Memorial Road, Oklahoma, OK, USA, 73142
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.
85GF Score

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Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$125.09
Price
$253.58
GF Value