PAYCNEUTRAL

PAYC PEG Ratio Analysis

1.24x

Updated 101h ago·SEC filings & market data

Key Takeaway

The PEG ratio (price-to-earnings divided by earnings growth rate) of 1.24x means the stock's price is 1.24 times its annual earnings growth, indicating a valuation that is slightly above its growth rate.

Sector Performance

57th percentile

PAYC

1.24x

Sector Median

0.97x

Sector Avg

2.92x

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Deep Analysis

The PEG ratio (price-to-earnings divided by earnings growth rate) of 1.24x means the stock's price is 1.24 times its annual earnings growth, indicating a valuation that is slightly above its growth rate.

This compares to a sector median of 0.92x, placing PAYC in the 58th percentile among peers—meaning it is more expensive than 58% of similar companies. Trend data is not available: the year-over-year change is listed as N/A, and the quarter-over-quarter change is also N/A. Without any trend direction, it is impossible to assess whether the metric is improving or deteriorating, which limits the ability to gauge momentum. The combination of a PEG slightly above the sector median and no trend data suggests a neutral risk profile—neither a clear bargain nor an indication of overvaluation. This metric supports the overall NEUTRAL verdict, as the PEG ratio does not signal a compelling opportunity or a strong warning.

Frequently Asked Questions

What does the PEG Ratio tell investors about PAYC?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

Who are PAYC's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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PAYC

1.24x

Sector Median

0.97x

Sector Avg

2.92x

How PAYC's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.