Paylocity HoldingPCTY -0.58%71 PEG Ratio is 0.36 as of Jun. 29, 2026, which is 70% below its 10-year median of 1.22. 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 821 Software companies, Paylocity Holding ranks better than 88.55% on this metric.
* 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 Paylocity Holding's PEG Ratio or its related term are showing as below:
PCTY'
s PEG Ratio Range Over the Past 10 Years
Min: 0.27 Med: 1.22 Max: 2.71
Current: 0.36
During the past 13 years, Paylocity Holding's highest PEG Ratio was 2.71. The lowest was 0.27. And the median was 1.22.
PCTY's PEG Ratio is ranked better than 88.55% of 821
companies
in the Software industry
Industry Median: 1.26
vs PCTY: 0.36
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Paylocity Holding (NAS:PCTY) 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.
Paylocity Holding PEG Ratio Related Terms
Paylocity Holding PEG Ratio Historical Data
* Premium members only.
The historical data trend for Paylocity Holding'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.
For the Software - Application subindustry, Paylocity Holding'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.
Paylocity Holding PEG Ratio vs Software Industry
For the Software industry and Technology sector, Paylocity Holding's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Paylocity Holding'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.
Paylocity Holding (PCTY) has a PEG Ratio of 0.36 as of Jun. 29, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Paylocity Holding and its competitors. This is 70% below median its historical median of 1.22. Over the past decade, Paylocity Holding's PEG Ratio has ranged from 0.27 to 2.71. According to the industry distribution chart, Paylocity Holding ranks #94 out of 821 companies in the Software industry, placing it in the top 11.4%.
Is Paylocity Holding's PEG Ratio too high?
Paylocity Holding's current PEG Ratio of 0.36 is 70% below median its 10-year median of 1.22. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 2.71. The Software industry median PEG Ratio is 1.26. Paylocity Holding's value of 0.36 is 71.4% below this industry median. Based on the distribution chart, Paylocity Holding ranks #94 out of 821 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 PEG Ratio compare to DUOL and NAVN?
According to the Software industry distribution chart, Paylocity Holding ranks #94 out of 821 companies for PEG Ratio. This places Paylocity Holding in the top 11% of its industry — outperforming the majority of peers. The industry median PEG Ratio is 1.26. Paylocity Holding's value of 0.36 is 71.4% below this benchmark. Historically, Paylocity Holding's own PEG Ratio has ranged from 0.27 to 2.71 over the past decade. While the company's 10-year median is 1.22 vs. the industry median of 1.26, Paylocity Holding has consistently been below 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 PEG Ratio for a Software company?
The median PEG Ratio among Software companies is 1.26, based on 821 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paylocity Holding's current PEG Ratio of 0.36 is 71.4% below 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Paylocity Holding and its competitors. For the Software industry, the median PEG Ratio is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paylocity Holding's current PEG Ratio is 0.36, which is 70% below median its own 10-year median of 1.22. 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 $105.73 — trading 53.1% below its estimated fair value. The current PEG Ratio is 0.36, which is 70% below median its 10-year median of 1.22 and 71.4% below the Software industry median of 1.26. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current PEG Ratio is 0.36 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 $105.73 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:
PEG Ratio: 0.36 (70% below median its 10-year median of 1.22)
GF Value™: $225.51 vs. price of $105.73 (53.1% below fair value)
Industry Position: 71.4% below the Software median (#94 of 821)
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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