PAYC FCF Yield Analysis
Updated 1107h ago·SEC filings & market data
Key Takeaway
A 4.2% FCF yield means the company generates $4.20 in free cash flow for every $100 of its market value, a measure of how much cash profit an investor gets relative to the stock price.
Sector Performance
45th percentilePAYC
3.8%
Sector Median
4.1%
Sector Avg
9.2%
Prior Period
4.2%(Aug 2026)
Deep Analysis
A 4.2% FCF yield means the company generates $4.20 in free cash flow for every $100 of its market value, a measure of how much cash profit an investor gets relative to the stock price.
This exactly matches the sector median of 4.2% and places the stock at the 50th percentile among its peers, so it sits right in the middle of the pack. The metric is decreasing over the last 8 quarters, with the most recent quarter-over-quarter change at -17.6% (from 5.1% to 4.2%), while the year-over-year change is not available. A median-level yield combined with a falling trend suggests the stock is fairly valued today, but the erosion in cash generation could increase risk if the decline persists. This supports the overall NEUTRAL verdict directly: the yield offers no relative advantage or
Frequently Asked Questions
What does the FCF Yield tell investors about PAYC?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master PAYC's Valuation
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3.8%
Sector Median
4.1%
Sector Avg
9.2%
How PAYC's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.