* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Paycom Software's PEG Ratio or its related term are showing as below:
PAYC'
s PEG Ratio Range Over the Past 10 Years
Min: 0.58 Med: 1.51 Max: 5.92
Current: 0.94
During the past 13 years, Paycom Software's highest PEG Ratio was 5.92. The lowest was 0.58. And the median was 1.51.
PAYC's PEG Ratio is ranked better than 69.89% of 827
companies
in the Software industry
Industry Median: 1.58
vs PAYC: 0.94
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Paycom Software PEG Ratio Historical Data
The historical data trend for Paycom Software's PEG 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.
Competitive Comparison of Paycom Software's PEG Ratio
For the Software - Application subindustry, Paycom Software's PEG Ratio, along with its competitors' market caps and PEG 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.
Paycom Software's PEG Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Paycom Software's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Paycom Software's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Paycom Software (NYSE:PAYC) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Paycom Software PEG Ratio Related Terms
Thank you for viewing the detailed overview of Paycom Software's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Paycom is a fast-growing provider of payroll and human capital management software primarily targeting clients with 50-10,000 employees in the United States. Paycom was established in 1998 and services about 19,500 clients as of 2023, 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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