Price to Book Value (P/BV)
since 2014
Calculation
Paycom Software Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2023 | 15.05 | = | 307.45 | ÷ | 20.43 | 20.43 | = | 1,182,607 | ÷ | 57,871,962 | |
| Feb 17, 2022 | 21.27 | = | 327.72 | ÷ | 15.40 | 15.40 | = | 893,714 | ÷ | 58,014,548 | |
| Feb 18, 2021 | 35.36 | = | 401.55 | ÷ | 11.36 | 11.36 | = | 655,643 | ÷ | 57,739,986 | |
| Feb 13, 2020 | 33.21 | = | 303.29 | ÷ | 9.13 | 9.13 | = | 526,628 | ÷ | 57,661,188 | |
| Feb 14, 2019 | 30.52 | = | 178.38 | ÷ | 5.84 | 5.84 | = | 334,753 | ÷ | 57,276,992 | |
| Feb 14, 2018 | 39.31 | = | 92.08 | ÷ | 2.34 | 2.34 | = | 135,402 | ÷ | 57,801,299 | |
| Feb 21, 2017 | 26.14 | = | 53.11 | ÷ | 2.03 | 2.03 | = | 116,527 | ÷ | 57,346,334 | |
| Feb 22, 2016 | 17.01 | = | 29.27 | ÷ | 1.72 | 1.72 | = | 98,314 | ÷ | 57,135,187 | |
| Feb 26, 2015 | 23.85 | = | 32.84 | ÷ | 1.38 | 1.38 | = | 74,138 | ÷ | 53,848,094 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Paycom Software Inc. Annual Report.
The financial trajectory from 2015 to 2023 is characterized by a consistent increase in underlying book value contrasted with significant volatility in market valuation.
- Book Value Per Share (BVPS) Trend
- A sustained and linear upward trend is observed in the book value per share, which grew from 1.38 US$ in 2015 to 20.43 US$ in 2023. This consistent growth indicates a steady accumulation of net assets and retained earnings over the analyzed period.
- Share Price Performance
- The share price exhibited a period of rapid appreciation, rising from 32.84 US$ in 2015 to a peak of 401.55 US$ in 2021. Following this peak, a downward correction occurred, with the price declining to 307.45 US$ by February 2023.
- Price to Book Value (P/BV) Dynamics
- The P/BV ratio demonstrated substantial fluctuation, reflecting changing market sentiment relative to the company's accounting value. After an initial dip to 17.01 in 2016, the ratio entered a phase of expansion, reaching a maximum of 35.36 in 2021. This peak indicates a period where the market placed a high premium on the company's growth prospects relative to its tangible assets. Subsequently, a sharp contraction is observed, with the ratio falling to 15.05 in 2023, the lowest level within the reported timeframe.
The recent decline in the P/BV ratio is the result of a dual effect: a retreating share price occurring simultaneously with a continuing increase in book value per share. This suggests a valuation normalization where the market price is aligning more closely with the company's intrinsic book value.
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Comparison to Industry (Industrials)
Paycom Software Inc., P/BV, long-term trends, comparison to industry (industrials)
| Paycom Software Inc. | Industrials | |
|---|---|---|
| Feb 16, 2023 | 15.05 | 5.50 |
| Feb 17, 2022 | 21.27 | 5.44 |
| Feb 18, 2021 | 35.36 | 5.89 |
| Feb 13, 2020 | 33.21 | 6.28 |
| Feb 14, 2019 | 30.52 | 5.96 |
| Feb 14, 2018 | 39.31 | 5.37 |
| Feb 21, 2017 | 26.14 | 4.89 |
| Feb 22, 2016 | 17.01 | 3.68 |
| Feb 26, 2015 | 23.85 | 3.70 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).