← Back to signals
PAYC
STRONG BUYPaycom Software Inc.
Technology
0.62
PEGY ratio
Rank #66
Why This Matters
This stock appears significantly undervalued relative to its growth and dividend yield. Strong projected growth of 42.2% annually over 5 years. Pays a 1.1% dividend yield.
PAYC is trading at 16.1x earnings against 25.0% capped growth (actual 42.2%) + 1.1% yield, giving a PEGY of 0.62. The math suggests the stock is significantly undervalued relative to its growth and income profile.
~ Growth estimate uses historical CAGR (forward estimates unavailable)
- • Growth rate derived from historical CAGR — limited analyst coverage.
- • Growth rate capped at 25% for PEGY calculation (actual: 42.2%). Per Peter Lynch methodology, growth above 25% is rarely sustainable over 5 years.
Scan date: 2026-05-29
Valuation
16.1x
P/E Ratio
Growth
42.2%
5yr EPS
Income
1.1%
Div Yield
PEGY Components
PEGY Score0.62
Denominator26.1%
EPS (TTM)$8.65
Market Data
Price$139.67
ExchangeNYSE
S&P 500
What Changed
PEGY Score
0.61→0.62(+0.01)
Rank
#66→#66(0 positions)
vs 7 days ago
Portfolio Context
Founder does not hold this stock.
Not in your portfolio.
Sector: Technology
PEGY History — 90 days
Data: Yahoo Finance • Updated nightly 11 PM ET • For informational purposes only