PCTY (Paylocity Holding) Moat Score: 6/10 (As of Jun. 29, 2026)


PCTY Paylocity Holding Corp PCTY
71 GF Score
Price $105.74
GF Value $225.51
Valuation Possible Value Trap
! 3 Warning Signs
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What is Paylocity Holding Moat Score?

Paylocity Holding PCTY -0.57% 71 Moat Score is 6 as of Jun. 29, 2026. GuruFocus rates PCTY with a GF Score™ of 71/100 and a GF Value™ of $225.51 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,844 Software companies, Paylocity Holding ranks better than 97.89% on this metric.

Paylocity Holding has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Paylocity Holding has Narrow Moat: Paylocity has a strong narrow moat with significant customer switching costs and a robust SaaS platform. However, competition in HR software limits its ability to achieve a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Paylocity Holding might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Paylocity Holding  (NAS:PCTY) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Paylocity Holding Moat Score Related Terms

PCTY vs DUOL, NAVN, CVLT: Moat Score Comparison

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

For the Software industry and Technology sector, Paylocity Holding's Moat Score distribution charts can be found below:

* The bar in red indicates where Paylocity Holding's Moat Score falls into.


PCTY
71GF Score
Paylocity Holding Corp PCTY
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Paylocity Holding (PCTY) has a Moat Score of 6 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Paylocity Holding ranks #60 out of 2844 companies in the Software industry, placing it in the top 2.1%.
Is Paylocity Holding's Moat Score too high?
Paylocity Holding's current Moat Score is 6. Based on the distribution chart, Paylocity Holding ranks #60 out of 2844 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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 Moat Score compare to DUOL and NAVN?
According to the Software industry distribution chart, Paylocity Holding ranks #60 out of 2844 companies for Moat Score. This places Paylocity Holding in the top 2% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Paylocity Holding's current Moat Score is 6. 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 $225.51, compared to a current price of $105.74 — trading 53.1% below its estimated fair value. The current Moat Score is 6. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current Moat Score is 6 as of Jun. 29, 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 $105.74 is trading 53.1% below its estimated GF Value™ of $225.51. GuruFocus considers Paylocity Holding to be Possible Value Trap.

Key valuation signals for PCTY:

  • Moat Score: 6
  • GF Value™: $225.51 vs. price of $105.74 (53.1% 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

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$105.74
Price
$225.51
GF Value