Question 1

What is Paycom Software's P/FCF ratio?

Accepted Answer

Paycom Software (PAYC) P/FCF ratio is 16.1× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Paycom Software?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Paycom Software specifically, the relevant sector benchmark is the current sector median of 21.8×.

Question 5

Is Paycom Software's P/FCF ratio high or low?

Accepted Answer

Paycom Software's P/FCF ratio of 16.1× is below its own 5-year average of 62.8× and below the sector median of 21.8×. That places the current reading at the 3th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Paycom Software's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Paycom Software (PAYC) P/FCF ratio has ranged from a low of 14.3× in 2026 to a high of 413.4× in 2014. The 5-year average is 62.8× and the 5-year median is 45.6×.

Question 7

What was Paycom Software's P/FCF ratio in 2025?

Accepted Answer

Paycom Software (PAYC) P/FCF ratio at the end of 2025 was 21.5×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Paycom Software's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$8.75B	$406M	21.5×	-12.1×	Dec 31, 2025
2024	$11.5B	$341M	33.6×	-7.4×	Dec 31, 2024
2023	$11.8B	$288M	41.0×	-37.6×	Dec 31, 2023
2022	$18B	$228M	78.7×	-46.0×	Dec 31, 2022
2021	$24.1B	$193M	124.7×	-71.2×	Dec 31, 2021
2020	$26.1B	$133M	195.9×	+79.6×	Dec 31, 2020
2019	$15.3B	$131M	116.2×	+59.9×	Dec 31, 2019
2018	$7.04B	$125M	56.4×	-9.2×	Dec 31, 2018
2017	$4.67B	$71.2M	65.5×	+18.0×	Dec 31, 2017
2016	$2.62B	$55.1M	47.6×	-33.8×	Dec 31, 2016
2015	$2.15B	$26.4M	81.3×	-81.9×	Dec 31, 2015
2014	$1.32B	$8.07M	163.2×	+56.0×	Dec 31, 2014
2013	$702M	$6.55M	107.2×	—	Dec 31, 2013


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Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Leidos Holdings (LDOS)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	9.8×
Accenture (ACN)	9.6×
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Gartner (IT)	8.8×
Fidelity National Information Services (FIS)	8.7×
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Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
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Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×
IBM (IBM)	0.0×

P/FCF Ratio for Paycom Software (PAYC) 2013-2026

P/FCF Ratio daily chart for Paycom Software (PAYC)

Historical P/FCF Ratio for Paycom Software (PAYC) from 2013 to 2025

About P/FCF Ratio at Paycom Software (PAYC)

Paycom Software P/FCF Ratio by Year

Paycom Software P/FCF Ratio 2025: 21.5×

Paycom Software P/FCF Ratio 2024: 33.6×

Paycom Software P/FCF Ratio 2023: 41.0×

Paycom Software P/FCF Ratio 2022: 78.7×

Paycom Software P/FCF Ratio 2021: 124.7×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Paycom Software (PAYC) Key Financials