Stock Analysis on Net
Stock Analysis on Net

Paycom Software Inc. (NYSE:PAYC)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Paycom Software Inc., EBITDA calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income 281,389 195,960 143,453 180,576 137,065
Add: Income tax expense 108,189 60,002 42,483 45,511 37,646
Earnings before tax (EBT) 389,578 255,962 185,936 226,087 174,711
Add: Interest expense 2,536 — 19 940 766
Earnings before interest and tax (EBIT) 392,114 255,962 185,955 227,027 175,477
Add: Depreciation and amortization 92,699 67,222 53,373 42,211 29,657
Earnings before interest, tax, depreciation and amortization (EBITDA) 484,813 323,184 239,328 269,238 205,134

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).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Paycom Software Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022.

Enterprise Value to EBITDA Ratio, Current

Paycom Software Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 9,013,886
Earnings before interest, tax, depreciation and amortization (EBITDA) 484,813
Valuation Ratio
EV/EBITDA 18.59
Benchmarks
EV/EBITDA, Industry
Industrials 19.25

Based on: 10-K (reporting date: 2022-12-31).

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

Paycom Software Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 17,421,005 18,763,705 23,064,675 17,387,028 10,205,741
Earnings before interest, tax, depreciation and amortization (EBITDA)2 484,813 323,184 239,328 269,238 205,134
Valuation Ratio
EV/EBITDA3 35.93 58.06 96.37 64.58 49.75
Benchmarks
EV/EBITDA, Industry
Industrials 16.43 16.28 30.77 16.43 —

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).

1 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 17,421,005 ÷ 484,813 = 35.93

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Paycom Software Inc. EV/EBITDA ratio decreased from 2020 to 2021 and from 2021 to 2022.