Paylocity HoldingPCTY -3.19%71 PB Ratio is 4.56 as of Jun. 25, 2026, which is 72% below its 10-year median of 16.05. 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. Among 2,625 Software companies, Paylocity Holding ranks worse than 76.34% on this metric.
Paylocity Holding Corp stock PB Ratio (=4.71) is close to 10-year low of 4.31.
The historical rank and industry rank for Paylocity Holding's PB Ratio or its related term are showing as below:
PCTY'
s PB Ratio Range Over the Past 10 Years
Min: 4.31 Med: 16.05 Max: 35.91
Current: 4.55
During the past 13 years, Paylocity Holding's highest PB Ratio was 35.91. The lowest was 4.31. And the median was 16.05.
PCTY's PB Ratio is ranked worse than 76.34% of 2625
companies
in the Software industry
Industry Median: 2.36
vs PCTY: 4.55
During the past 12 months, Paylocity Holding's average Book Value Per Share Growth Rate was 1.30% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 26.10% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 26.20% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 28.40% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Paylocity Holding was 36.80% per year. The lowest was 15.80% per year. And the median was 27.30% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Paylocity Holding PB Ratio Related Terms
Paylocity Holding PB Ratio Historical Data
* Premium members only.
The historical data trend for Paylocity Holding's PB Ratio 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 PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Software Industry
For the Software industry and Technology sector, Paylocity Holding's PB Ratio distribution charts can be found below:
* The bar in red indicates where Paylocity Holding's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Paylocity Holding (PCTY) has a PB Ratio of 4.56 as of Jun. 25, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Paylocity Holding and its competitors. This is 72% below median its historical median of 16.05. Over the past decade, Paylocity Holding's PB Ratio has ranged from 4.31 to 35.91. According to the industry distribution chart, Paylocity Holding ranks #2004 out of 2625 companies in the Software industry, placing it in the top 76.3%.
Is Paylocity Holding's PB Ratio too high?
Paylocity Holding's current PB Ratio of 4.56 is 72% below median its 10-year median of 16.05. Over the past 10 years, this metric has ranged from a low of 4.31 to a high of 35.91. The Software industry median PB Ratio is 2.36. Paylocity Holding's value of 4.56 is 93.2% above this industry median. Based on the distribution chart, Paylocity Holding ranks #2004 out of 2625 companies in the Software industry, which is in the bottom quartile 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 PB Ratio compare to PEGA and PAYC?
According to the Software industry distribution chart, Paylocity Holding ranks #2004 out of 2625 companies for PB Ratio. This places Paylocity Holding in the lower half of its industry. The industry median PB Ratio is 2.36. Paylocity Holding's value of 4.56 is 93.2% above this benchmark. Historically, Paylocity Holding's own PB Ratio has ranged from 4.31 to 35.91 over the past decade. While the company's 10-year median is 16.05 vs. the industry median of 2.36, 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 PB Ratio for a Software company?
The median PB Ratio among Software companies is 2.36, based on 2,625 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paylocity Holding's current PB Ratio of 4.56 is 93.2% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Paylocity Holding and its competitors. For the Software industry, the median PB Ratio is 2.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paylocity Holding's current PB Ratio is 4.56, which is 72% below median its own 10-year median of 16.05. 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 $100.48 — trading 55.4% below its estimated fair value. The current PB Ratio is 4.56, which is 72% below median its 10-year median of 16.05 and 93.2% above the Software industry median of 2.36. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current PB Ratio is 4.56 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 Paylocity Holding (PCTY) Overvalued in 2026?
Based on GuruFocus' analysis, Paylocity Holding stock appears to be undervalued.
The current stock price of $100.48 is trading 55.4% below its estimated GF Value™ of $225.43.
GuruFocus considers Paylocity Holding to be Possible Value Trap.
Key valuation signals for PCTY:
PB Ratio: 4.56 (72% below median its 10-year median of 16.05)
GF Value™: $225.43 vs. price of $100.48 (55.4% below fair value)
Industry Position: 93.2% above the Software median (#2004 of 2625)
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.
71GF Score
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