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Paylocity Holding DCF Stock Analysis

Here’s my assumptions for $PCTY ( ▲ 5.53% ) :

Risk Free Rate (10 Years Interest Rate Swap): 4.1%

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): 2%

Historical Data

Revenue growth in the last 10 years (CAGR): 24.83%

Earnings growth in the last 10 years (CAGR): / (From -14 to 227.3 Million)

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 121.45%

Future Assumptions

End of Year FCF growth: 10%

Growth until end of 2026: 20%

Growth until end of 2034: 1%

Perpetual growth: 3%

Net Debt: -0.177B (Positive)

Outstanding Stock Options Present Value Assumption: $0.025B

Restricted Stock Units + Performance Stock Units Present Value Assumption: $0.059B

Stock Valuation based on these assumptions: $345

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 Paylocity Holding (PCTY) and I don’t plan to add a position in the coming days.