In partnership with

100 Genius Side Hustle Ideas

Don't wait. Sign up for The Hustle to unlock our side hustle database. Unlike generic "start a blog" advice, we've curated 100 actual business ideas with real earning potential, startup costs, and time requirements. Join 1.5M professionals getting smarter about business daily and launch your next money-making venture.

Get the guide

Paycom Software DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.131%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 1%

Historical Data

Revenue growth in the last 10 years (CAGR): 23.69%

Earnings growth in the last 10 years (CAGR): 37.55%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 26.42%

Future Assumptions

End of Year FCF growth: 15%

Growth until end of 2026: 25%

Growth until end of 2034: 15%

Perpetual growth: 3.1%

Net Debt: -0.439B

Restricted Stock Units + Performance Stock Units Present Value Assumption: $0.304B

Stock Valuation based on these assumptions: $442

Last update 08/01/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Paycom Software (PAYC) and I don’t plan to add a position in the coming days.