PAYC — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($128.30)
DCF	$122.05	-4.9%
Graham Number	$76.71	-40.2%
Reverse DCF	—	implied g: 11.1%
DDM	$30.90	-75.9%
EV/EBITDA	$128.30	+0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $260.98M

Near-term growth (yrs 1–5)(%)Rev: 10.2% / EPS: 2.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.69%

Computed WACC: 8.69%

Cost of equity (Re)8.77%(Rf 4.30% + β 0.81 × ERP 5.50%)

Cost of debt (Rd)3.77%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)98.73%

Debt weight (D/V)1.27%

Results

Intrinsic Value / share$128.29

Current Price$128.30

Upside / Downside-0.0%

Net Debt (used)-$279.70M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	2.2%	6.2%	10.2%	14.2%	18.2%
7.0%	$126.47	$150.15	$177.53	$209.04	$245.14
8.0%	$103.89	$122.83	$144.71	$169.85	$198.63
9.0%	$88.30	$103.97	$122.05	$142.82	$166.56
10.0%	$76.89	$90.18	$105.50	$123.07	$143.14
11.0%	$68.19	$79.67	$92.89	$108.03	$125.32

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $8.08

Book Value / share($)Yahoo: $32.36

Results

Graham Number$76.71

Current Price$128.30

Margin of Safety-40.2%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.69%

Terminal growth rate(%)

Computed WACC: 8.69%

Cost of equity (Re)8.77%(Rf 4.30% + β 0.81 × ERP 5.50%)

Cost of debt (Rd)3.77%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)98.73%

Debt weight (D/V)1.27%

Results

Current Price$128.30

Implied Near-term FCF Growth10.2%

Historical Revenue Growth10.2%

Historical Earnings Growth2.1%

Base FCF (TTM)$260.98M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $1.50

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$30.90

Current Price$128.30

Upside / Downside-75.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $634.50M

Target EV/EBITDA multipleCurrent: 10.3×

Net Debt($B)Default: -$279.70M

Results

Implied Equity Value / share$128.30

Current Price$128.30

Upside / Downside+0.0%

Implied EV$6.54B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$2.28B	-$1.28B	-$279.70M	$720.30M	$1.72B
6.3x	$118.18	$99.37	$80.56	$61.75	$42.94
8.3x	$142.05	$123.24	$104.43	$85.62	$66.81
10.3x	$165.93	$147.11	$128.30	$109.49	$90.68
12.3x	$189.80	$170.99	$152.17	$133.36	$114.55
14.3x	$213.67	$194.86	$176.05	$157.23	$138.42

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