Paycom Stock Performance Overview
InvestingPro’s Fair Value analysis identified Paycom Software, Inc. (NYSE:PAYC) as significantly undervalued on February 27, 2026, when the share price was $125.83. At that time the stock had fallen 15.44% in January and 6.62% in February, despite the company generating $2.05 billion in revenue, $634.5 million in EBITDA, and earnings per share of $8.13, with an 87.6% gross profit margin.
The Fair Value methodology, which combines discounted cash flow projections, comparable‑company analysis, dividend discount models, and analyst consensus targets, calculated an intrinsic value of $187.90 per share, indicating a potential upside of 49.33% from the market price of $125.83. Contrary to the estimate, the stock appreciated to $214.94 by August 7, 2026, delivering a total six‑month gain of 70.82%.
The rally accelerated after Paycom reported its second‑quarter 2026 earnings, where revenue rose to $2.14 billion, EBITDA increased 15.9% to $735.1 million, and EPS grew 15.4% to $9.38. The earnings release triggered a single‑day surge of 15‑16% in the share price. Following the results, several analysts raised their price targets, with Guggenheim moving its target to $225 and BTIG to $230.
In the same period, Paycom announced its inclusion in the S&P 500 index, authorized an additional $200 million stock repurchase program, and declared a quarterly dividend of $0.375 per share.
InvestingPro continues to provide Fair Value estimates for thousands of stocks; the current Fair Value for Paycom is $292, suggesting further upside potential for investors who track the model.