What is Paycom Software, Inc. worth?
With the base-case assumptions below, a discounted cash flow model on Paycom Software, Inc.'s reported free cash flow gives $227.71 per share. The share price was $220.46 on September 25, 2026, 3% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 10.0% | 10.0% | $133.45 | -39% |
| Base | 15.0% | 9.0% | $227.71 | +3% |
| Bull | 20.0% | 8.0% | $403.23 | +83% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $299.07 | $321.33 | $348.52 | $382.52 | $426.23 |
| 8.0% | $245.46 | $259.89 | $276.95 | $297.41 | $322.43 |
| 9.0% | $206.46 | $216.32 | $227.71 | $240.99 | $256.69 |
| 10.0% | $176.88 | $183.90 | $191.85 | $200.94 | $211.42 |
| 11.0% | $153.74 | $158.88 | $164.63 | $171.10 | $178.43 |
Where the presets come from
Base: years 1 to 5 grow at Paycom Software, Inc.'s revenue growth rate over the last 5 fiscal years (19.5% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions