PAYCNEUTRAL

EV/EBITDA

10.6x

Updated 294h ago

Sector Performance

32th percentile

PAYC

10.6x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

PAYC’s current EV/EBITDA of 10.6x means the company’s enterprise value (market cap plus debt minus cash) is 10.6 times its earnings before interest, taxes, depreciation, and amortization—a common measure of valuation.

This ratio sits below the sector median of 13.9x, placing PAYC in the 30th percentile among its sector peers, indicating it is valued lower than most comparable companies. The metric shows no trend because year-over-year change, quarter-over-quarter change, and the last eight quarters of data are all marked as N/A. With no trend information, investors cannot assess whether the below-median valuation is stable, improving, or deteriorating, limiting insight into risk or opportunity. The current level suggests PAYC may be undervalued relative to peers, but the absence of historical context makes that interpretation speculative. This metric neither strongly supports nor contradicts the overall NEUTRAL verdict; it aligns with a neutral stance because the low valuation is tempered by a complete lack of trend data.

Frequently Asked Questions

What does the EV/EBITDA tell investors about PAYC?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are PAYC's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.