Paycom Software
Financial ratios & Valuation

Forward Multiples (2025 – 2026)

20252026
Price/Earnings ratio
31.6527.06
Price/Sales ratio
6.525.84
Earnings per Share (EPS)
$7.17$8.38

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
231.47101.4959.7169.5451.5584.39181.65122.6463.8835.0024.5884.39
Price/Sales ratio
8.689.467.9510.7212.4720.6530.9622.7613.077.046.3320.65
Price/Book Value ratio
17.6821.6222.4634.3121.1128.9339.7426.8915.209.157.8928.93
Price/Cash Flow ratio
58.6849.4726.4535.5738.2367.95114.6975.2549.2324.5922.7567.95
Price/Free Cash Flow ratio
162.4980.4547.4765.2456.57116.04195.77124.4178.7341.3937.83116.04
Price/Earnings Growth ratio
0.290.420.561.350.482.64-8.773.391.471.620.452.64
Dividend Yield
N/AN/AN/AN/AN/AN/AN/AN/AN/A0.54%0.72%N/A
Profitability Indicator Ratios
Gross Profit Margin
81.90%84.20%83.57%83.36%83.97%85.12%85.31%84.66%84.53%83.68%78.42%85.12%
Operating Profit Margin
10.40%15.32%17.61%18.15%30.67%30.66%22.11%24.02%27.53%26.64%32.48%30.67%
Pretax Profit Margin
6.39%14.92%17.39%17.69%30.84%30.64%22.09%24.24%28.32%27.89%33.41%30.84%
Net Profit Margin
3.75%9.32%13.31%15.42%24.20%24.47%17.04%18.56%20.46%20.12%25.77%24.20%
Effective Tax Rate
41.35%37.52%23.41%12.83%21.54%20.12%22.84%23.44%27.77%27.86%22.84%21.54%
Return on Assets
0.70%2.38%4.06%4.92%9.00%7.26%5.50%6.09%7.21%8.11%13.46%9.00%
Return On Equity
7.63%21.30%37.62%49.33%40.94%34.28%21.87%21.92%23.79%26.15%33.39%34.28%
Return on Capital Employed
13.06%23.07%32.25%36.56%35.21%30.84%20.91%20.70%24.82%27.14%32.32%32.32%
Liquidity Ratios
Current Ratio
1.021.041.021.001.031.061.08N/AN/AN/A1.191.03
Quick Ratio
1.021.041.021.001.031.061.081.131.161.101.191.03
Cash ratio
0.030.060.060.040.040.070.080.130.160.110.190.04
Days of Sales Outstanding
9.0114.782.257.264.756.588.498.957.547.506.184.75
Days of Inventory outstanding
2.6011.244.554.963.203.853.402.552.751.821.233.85
Operating Cycle
11.6226.026.8012.227.9510.4411.8911.5010.309.337.4210.44
Days of Payables Outstanding
40.6450.4025.2232.8825.2816.7920.0513.0127.5418.3232.5125.28
Cash Conversion Cycle
-29.02-24.38-18.41-20.65-17.32-6.35-8.15-1.50-17.24-8.99-25.08-6.35
Debt Ratios
Debt Ratio
0.030.020.020.020.020.010.010.000.00N/A0.000.01
Debt Equity Ratio
0.360.260.250.260.100.060.040.030.02N/A0.010.06
Long-term Debt to Capitalization
0.260.200.190.200.080.050.040.020.02N/AN/A0.05
Total Debt to Capitalization
0.260.200.200.200.090.050.040.030.02N/A0.010.05
Interest Coverage Ratio
4.5824.1355.9586.30226.78240.669.79KN/AN/AN/A226.25240.66
Cash Flow to Debt Ratio
0.821.663.313.695.376.877.3510.9512.58N/A25.245.37
Company Equity Multiplier
10.778.919.2510.004.544.723.973.593.293.222.384.72
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.140.190.300.300.320.300.270.300.260.280.270.30
Free Cash Flow / Operating Cash Flow Ratio
0.360.610.550.540.670.580.580.600.620.590.600.58
Cash Flow Coverage Ratio
0.821.663.313.695.376.877.3510.9512.58N/A25.245.37
Short Term Coverage Ratio
26.1248.5088.90147.07104.12126.34128.00179.92N/AN/A25.24126.34
Dividend Payout Ratio
N/AN/AN/AN/AN/AN/AN/AN/AN/A19.02%18.11%N/A