Discounted Cash Flow

Paycom Software, Inc.

PAYC · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $329.1m $43.8m $55.1m 13.3% $0.76
2017 $433.0m (31.6%) $66.8m (52.4%) $71.2m (29.1%) 15.4% (15.8%) $1.15 (51.3%)
2018 $566.3m (30.8%) $137.1m (105.2%) $124.9m (75.4%) 24.2% (56.9%) $2.37 (106.1%)
2019 $737.7m (30.3%) $180.6m (31.7%) $131.3m (5.1%) 24.5% (1.1%) $3.14 (32.5%)
2020 $841.4m (14.1%) $143.5m (-20.6%) $133.1m (1.4%) 17.0% (-30.4%) $2.49 (-20.7%)
2021 $1.1b (25.4%) $196.0m (36.6%) $198.7m (49.3%) 18.6% (8.9%) $3.39 (36.1%)
2022 $1.4b (30.3%) $281.4m (43.6%) $232.4m (17.0%) 20.5% (10.2%) $4.86 (43.4%)
2023 $1.7b (23.2%) $340.8m (21.1%) $292.4m (25.8%) 20.1% (-1.7%) $5.91 (21.6%)
2024 $1.9b (11.2%) $502.0m (47.3%) $341.0m (16.6%) 26.7% (32.5%) $8.93 (51.1%)
2025 $2.1b (8.9%) $453.4m (-9.7%) $408.0m (19.6%) 22.1% (-17.1%) $8.13 (-9.0%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model