The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Paycom Software's share price is $188.89.
Paycom Software's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $29.24. Hence, Paycom Software's PS Ratio for today is 6.46.
The historical rank and industry rank for Paycom Software's PS Ratio or its related term are showing as below:
PAYC'
s PS Ratio Range Over the Past 10 Years
Min: 4.89 Med: 12.57 Max: 33.11
Current: 6.37
During the past 13 years, Paycom Software's highest PS Ratio was 33.11. The lowest was 4.89. And the median was 12.57.
PAYC's PS Ratio is ranked worse than 79.92% of 2739
companies
in the Software industry
Industry Median: 2.24
vs PAYC: 6.37
Paycom Software Inc has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of Paycom Software was 23.60% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 26.50% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 24.40% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 29.40% per year.
During the past 13 years, Paycom Software's highest 3-Year average Revenue per Share Growth Rate was 36.30% per year. The lowest was 23.20% per year. And the median was 33.00% per year.
Back to Basics: PS Ratio
Paycom Software PS Ratio Historical Data
The historical data trend for Paycom Software's PS 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 PS Ratio
For the Software - Application subindustry, Paycom Software's PS Ratio, along with its competitors' market caps and PS 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 PS Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Paycom Software's PS Ratio distribution charts can be found below:
* The bar in red indicates where Paycom Software's PS Ratio falls into.
Paycom Software PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Paycom Software's Share Price of today is $188.89. 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 $29.24.
* 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:
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Paycom Software PS Ratio Related Terms
Thank you for viewing the detailed overview of Paycom Software's PS Ratio 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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PAYC has been successfully added to your 