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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 (EV)

Microsoft Excel

Current Enterprise Value (EV)

Paycom Software Inc., current enterprise value calculation

Microsoft Excel
Current share price (P) $162.66
No. shares of common stock outstanding 57,700,820
US$ in thousands
Common equity (market value)1 9,385,615
Total equity 9,385,615
Add: Current portion of long-term debt (per books) —
Add: Net long-term debt, less current portion (per books) 29,000
Total equity and debt 9,414,615
Less: Cash and cash equivalents 400,730
Enterprise value (EV) 9,013,885

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

1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 162.66 × 57,700,820

Historical Enterprise Value (EV)

Paycom Software Inc., EV calculation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Share price1, 2 $307.45 $327.72 $401.55 $303.29 $178.38
No. shares of common stock outstanding1 57,871,962 58,014,548 57,739,986 57,661,188 57,276,992
US$ in thousands
Common equity (market value)3 17,792,735 19,012,528 23,185,491 17,488,062 10,217,070
Total equity 17,792,735 19,012,528 23,185,491 17,488,062 10,217,070
Add: Current portion of long-term debt (book value) — 1,775 1,775 1,775 1,775
Add: Net long-term debt, less current portion (book value) 29,000 27,380 29,119 30,858 32,614
Total equity and debt 17,821,735 19,041,683 23,216,385 17,520,695 10,251,459
Less: Cash and cash equivalents 400,730 277,978 151,710 133,667 45,718
Enterprise value (EV) 17,421,005 18,763,705 23,064,675 17,387,028 10,205,741

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 Data adjusted for splits and stock dividends.

2 Closing price as at the filing date of Paycom Software Inc. Annual Report.

3 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 307.45 × 57,871,962

The Enterprise Value (EV) exhibits a period of rapid appreciation followed by a moderate contraction between 2018 and 2022. A significant growth phase is observed from 2018 through 2020, after which the valuation entered a downward trend over the subsequent two fiscal years.

Enterprise Value Trajectory
From December 31, 2018, to December 31, 2020, the EV increased from 10,205,741 thousand US$ to a peak of 23,064,675 thousand US$. Following this peak, a contraction occurred, with the EV decreasing to 18,763,705 thousand US$ in 2021 and further declining to 17,421,005 thousand US$ by December 31, 2022.
Capital Structure and Valuation Correlation
A high degree of correlation exists between the market value of common equity and the Enterprise Value throughout the analyzed period. The minimal variance between these two figures indicates that the company maintains a lean capital structure where debt levels do not significantly impact the overall valuation.
Equity and Debt Relationship
The figures for total equity and total equity and debt are nearly identical across all years. This suggests that the company is primarily equity-financed, as the marginal difference between total equity and the combined equity and debt metric confirms the absence of substantial long-term debt obligations.

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