This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Paycom Software's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $29.237. Paycom Software's 10-Year median PS Ratio is 13.2599. Therefore, the Median PS Value for today is $387.68.
As of today (2024-04-25), Paycom Software's share price is $186.58. Paycom Software's Median PS Value is $387.68. Therefore, Paycom Software's Price to Median PS Value for today is 0.48.
The historical rank and industry rank for Paycom Software's Median PS Value or its related term are showing as below:
PAYC'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.48 Med: 0.53 Max: 0.53
Current: 0.48
During the past 13 years, the highest Price to Median PS Value of Paycom Software was 0.53. The lowest was 0.48. And the median was 0.53.
PAYC's Price-to-Median-PS-Value is ranked better than 83.56% of 1022
companies
in the Software industry
Industry Median: 0.96
vs PAYC: 0.48
Paycom Software Median PS Value Historical Data
The historical data trend for Paycom Software's Median PS Value 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.
Competitive Comparison of Paycom Software's Median PS Value
For the Software - Application subindustry, Paycom Software's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value 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's Price-to-Median-PS-Value Distribution in the Software Industry
For the Software industry and Technology sector, Paycom Software's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Paycom Software's Price-to-Median-PS-Value falls into.
Paycom Software Median PS Value Calculation
Paycom Software's Median PS Value for today is calculated as
10-Year Median PS Ratio is 13.2599.
Paycom Software's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $29.237.
* 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 (NYSE:PAYC) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Paycom Software's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
186.58
/
387.68
=
0.48
* 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 Median PS Value Related Terms
Thank you for viewing the detailed overview of Paycom Software's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Paycom Software (Paycom Software) Business Description
Paycom is a fast-growing provider of payroll and human capital management, or HCM, software primarily targeting clients with 50-10,000 employees in the United States. Paycom was established in 1998 and services about 19,000 clients as of 2022, based on parent company grouping. Alongside its core payroll software, Paycom offers various HCM add-on modules, including time and attendance, talent management, and benefits administration.
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