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Paycom SoftwarePAYC -3.67%81 5-Year Yield-on-Cost % is 1.02 as of Jul. 21, 2026, which is 42% above its 10-year median of 0.72. GuruFocus rates PAYC with a GF Score™ of 81/100 and a GF Value™ of $256.25 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,027 Software companies, Paycom Software ranks worse than 75.46% on this metric.
Paycom Software's yield on cost for the quarter that ended in Mar. 2026 was 1.02.
The historical rank and industry rank for Paycom Software's 5-Year Yield-on-Cost % or its related term are showing as below:
PAYC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.1 Med: 0.72 Max: 1.32
Current: 1.02
During the past 13 years, Paycom Software's highest Yield on Cost was 1.32. The lowest was 0.10. And the median was 0.72.
PAYC's 5-Year Yield-on-Cost % is ranked worse than 75.46% of 1027
companies
in the Software industry
Industry Median: 3.11
vs PAYC: 1.02
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Paycom Software 5-Year Yield-on-Cost % Related Terms
PAYC vs ESTC, CVLT, NAVN: 5-Year Yield-on-Cost % Comparison
For the Software - Application subindustry, Paycom Software's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, Paycom Software's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Paycom Software's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Paycom Software is calculated as
Paycom Software (PAYC) has a 5-Year Yield-on-Cost % of 1.02 as of Jul. 21, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Paycom Software and its competitors. This is 42% above median its historical median of 0.72. Over the past decade, Paycom Software's 5-Year Yield-on-Cost % has ranged from 0.10 to 1.32. According to the industry distribution chart, Paycom Software ranks #775 out of 1027 companies in the Software industry, placing it in the top 75.5%.
Is Paycom Software's 5-Year Yield-on-Cost % too high?
Paycom Software's current 5-Year Yield-on-Cost % of 1.02 is 42% above median its 10-year median of 0.72. Over the past 10 years, this metric has ranged from a low of 0.10 to a high of 1.32. The Software industry median 5-Year Yield-on-Cost % is 3.11. Paycom Software's value of 1.02 is 67.2% below this industry median. Based on the distribution chart, Paycom Software ranks #775 out of 1027 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Paycom Software has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paycom Software's 5-Year Yield-on-Cost % compare to ESTC and CVLT?
According to the Software industry distribution chart, Paycom Software ranks #775 out of 1027 companies for 5-Year Yield-on-Cost %. This places Paycom Software in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.11. Paycom Software's value of 1.02 is 67.2% below this benchmark. Historically, Paycom Software's own 5-Year Yield-on-Cost % has ranged from 0.10 to 1.32 over the past decade. While the company's 10-year median is 0.72 vs. the industry median of 3.11, Paycom Software 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 5-Year Yield-on-Cost % for a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.11, based on 1,027 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paycom Software's current 5-Year Yield-on-Cost % of 1.02 is 67.2% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Paycom Software and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paycom Software's current 5-Year Yield-on-Cost % is 1.02, which is 42% above median its own 10-year median of 0.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paycom Software stock overvalued right now?
Based on GuruFocus' analysis, Paycom Software (PAYC) is currently considered Significantly Undervalued. The stock's GF Value™ is $256.25, compared to a current price of $144.22 — trading 43.7% below its estimated fair value. The current 5-Year Yield-on-Cost % is 1.02, which is 42% above median its 10-year median of 0.72 and 67.2% below the Software industry median of 3.11. Paycom Software's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Paycom Software (PAYC), the current 5-Year Yield-on-Cost % is 1.02 as of Jul. 21, 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 Paycom Software (PAYC) Overvalued in 2026?
Based on GuruFocus' analysis, Paycom Software stock appears to be undervalued.
The current stock price of $144.22 is trading 43.7% below its estimated GF Value™ of $256.25.
GuruFocus considers Paycom Software to be Significantly Undervalued.
Key valuation signals for PAYC:
5-Year Yield-on-Cost %: 1.02 (42% above median its 10-year median of 0.72)
GF Value™: $256.25 vs. price of $144.22 (43.7% below fair value)
Industry Position: 67.2% below the Software median (#775 of 1027)
No single metric tells the full story. See the PAYC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1998, Paycom is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, HR management, as well as time and labor. The company services businesses of all sizes within the United States and internationally. The company primarily generates revenue through the sale of subscriptions providing access to its HCM platform. To a lesser extent, the company also generates revenue from implementation services provided to customers as well as interest income generated from customer funds. As of fiscal 2024, the company serviced slightly over 37,500 customers and stored data on over 7 million employees.
81GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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