PAYCNEUTRAL

PAYC P/E Ratio Analysis

13.3x

Updated 1107h ago·SEC filings & market data

Key Takeaway

The current P/E ratio of 13.3x means investors pay $13.30 for every $1 of the company's annual earnings.

Sector Performance

19th percentile

PAYC

13.3x

Sector Median

22.9x

Sector Avg

34.3x

Prior Period

14.5x(Aug 2026)

↑ Improving

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Deep Analysis

The current P/E ratio of 13.3x means investors pay $13.30 for every $1 of the company's annual earnings.

That is well below the sector median of 23.4x, placing PAYC in the 18th percentile among peers, so the stock trades at a lower earnings multiple than most similar companies. For trend data, the year-over-year change is N/A, but the quarter-over-quarter change shows a decline of 7.9%, with the most recent historical values moving from 14.5x to 13.3x. The combination of a low P/E versus the sector and a falling quarterly multiple suggests the market is pricing in lower expected earnings growth or increased caution, which could be either a value opportunity or a risk if earnings deteriorate. This metric supports the overall NEUTRAL verdict because the low valuation is balanced by the negative quarterly trend, leaving no clear bullish or bearish signal.

Frequently Asked Questions

What does the P/E Ratio tell investors about PAYC?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

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Learn More About P/E Ratio

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.