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Paycom Software (NYSE:PAYC) GF Value Rank

: 4 (As of Today)
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Paycom Software has the GF Value Rank of 4.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Software - Application subindustry, Paycom Software's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Software industry and Technology sector, Paycom Software's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Paycom Software's GF Value Rank falls into.



Paycom Software GF Value Rank Related Terms

Thank you for viewing the detailed overview of Paycom Software's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Paycom Software (NYSE:PAYC) Business Description

Traded in Other Exchanges
Address
7501 W. Memorial Road, Oklahoma, OK, USA, 73142
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.
Executives
Chad R. Richison director, 10 percent owner, officer: President and CEO 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Jason D. Clark director 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Watts J C Jr director
Christopher Gene Thomas officer: SEVP of Operations 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Peters Frederick C Ii director BRYN MAWR BANK CORP, 801 LANCASTER AVE, BRYN MAWR PA 19010
Holly Faurot officer: Chief Sales Officer 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Justin Devon Long officer: EVP of Operations 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Bradley Scott Smith officer: Chief Information Officer 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Craig E. Boelte officer: Chief Financial Officer 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Felicia Williams director C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001
Sharen J Turney director THREE LIMITED PARKWAY, COLUMBUS OH 43230
Jon Evans officer: Chief Operating Officer 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Jeffrey D. York officer: Chief Sales Officer 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Robert J Levenson director 300 SEMINOLE AVENUE, P.H. 6B, PALM BEACH FL 33480
Kathy Oden-hall officer: See Remarks 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142