Paylocity Holding Corporation

Valuation Analysis

About the Company

Paylocity Holding Corporation provides cloud-based human capital management, payroll software, and spend management solutions for the workforce in the United States. The company offers payroll solutions comprising payroll and tax services, global payroll, on-demand payment, and garnishments; human resources (HR) solutions consisting of human resources, employee self-service, workflows and documents, HR compliance dashboard, and HR edge; time and attendance, scheduling, and time collection; time and labor solutions, including time and attendance, scheduling, and time collection; and talent solutions, such as recruiting, onboarding, market pay, learning, performance, and compensation. It also provides benefits solutions comprising benefit enrollment and updates, and third-party administrativ

Paylocity Holding Corporation Stock at a Glance

Paylocity Holding Corporation (PCTY) is currently trading at $108.84 with a market capitalization of $5.8B. The trailing P/E ratio stands at 23.26x, with a forward P/E of 12.51x. The 52-week range spans from $92.99 to $197.78; the current price is 45% below the yearly high. Year-over-year revenue growth stands at +10.5%. The net profit margin stands at 14.94%.

💰 Dividend

Paylocity Holding Corporation currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

19 analysts rate Paylocity Holding Corporation (PCTY) on consensus: Strong Buy. The average price target is $154.58, implying +42.02% from the current price. Analyst price targets range from $120.00 to $250.00.

Paylocity Holding Corporation: The Investment Case in Detail

Paylocity Holding Corporation (PCTY) operates in the Technology — specifically Software - Application — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 10.5% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 27.3% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. With a gross margin near 69.42%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns.

Valuation in Context

With a PEG ratio of 0.86, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 12.51x is meaningfully below the trailing 23.26x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 42.02% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (6.98%).

Trading Data

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