PCTY (Paylocity Holding) Risk Assessment


PCTY Paylocity Holding Corp PCTY
75 GF Score
Price $118.52
GF Value $226.45
Valuation Possible Value Trap
! 3 Warning Signs
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What is Paylocity Holding Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Paylocity Holding is: High Risk: Good fundamentals, beware of shrinking business.

Paylocity Holding  (NAS:PCTY) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Paylocity Holding Risk Assessment Related Terms

PCTY vs DUOL, NAVN, CVLT: Risk Assessment Comparison

For the Software - Application subindustry, Paylocity Holding's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Software Industry

For the Software industry and Technology sector, Paylocity Holding's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Paylocity Holding's Risk Assessment falls into.


PCTY
75GF Score
Paylocity Holding Corp PCTY
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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Is Paylocity Holding (PCTY) Overvalued in 2026?

Based on GuruFocus' analysis, Paylocity Holding stock appears to be undervalued. The current stock price of $118.52 is trading 47.7% below its estimated GF Value™ of $226.45. GuruFocus considers Paylocity Holding to be Possible Value Trap.

Key valuation signals for PCTY:

  • Risk Assessment:
  • GF Value™: $226.45 vs. price of $118.52 (47.7% below fair value)
  • GF Score™: 75/100 with 3 warning signs

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 Holding Business Description

Address 1400 American Lane, Schaumburg, IL, USA, 60173
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.
75GF Score

Get the complete analysis for PCTY

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$118.52
Price
$226.45
GF Value