Paycom Software Inc. (PAYC) stock price has fallen roughly 18% from its 52-week high, mostly due to multiple adjustments. Despite the big drop in share price, I believe that Paycom is a leader in its space with growing switching costs. At $214, however, it is overvalued by roughly 28% based on my base-case assumptions. Nonetheless, I provide potential investors with the rough estimates needed for Paycom to be a good investment at the current price.
(Source: Google)
Paycom has been experiencing profitable growth with a large addressable market
Paycom focuses on providing human capital