TacticScaleWhat Paylocity Holding Does & How It Makes Money (PCTY)
Updated October 2026 · reflects Paylocity Holding's latest reported financials
Cloud software for payroll, HR, finance, and IT management. It sells subscriptions to its cloud software suite to employers, and also earns from services such as implementation, training, client support, and tax and regulatory filing.
How Paylocity Holding makes money
It sells subscriptions to its cloud software suite to employers, and also earns from services such as implementation, training, client support, and tax and regulatory filing.
What Paylocity Holding does
Paylocity Holding Corporation, founded in 1997 and headquartered in Schaumburg, Illinois, provides cloud-based human capital management software to U.S. organizations. Its core products are payroll and tax services, HR administration, time and labor tracking, talent management, and benefits administration. It also offers employee experience tools such as community, video, recognition, and employee feedback features. The company has moved beyond HR into adjacent back-office areas. Paylocity for Finance covers headcount planning, expense management, accounts payable automation, corporate cards, and procurement, and Paylocity for IT covers identity, access, and asset management. Paylocity sells through its own sales representatives to for-profit and non-profit customers in industries including business services, financial services, healthcare, manufacturing, restaurants, retail, and technology.
Products & services
- Payroll and tax services
- Human resources and employee self-service
- Time and labor management
- Talent management (recruiting, onboarding, learning, performance)
- Benefits administration and retirement
- Paylocity for Finance and Paylocity for IT
What is Paylocity Holding worth?
On an owner-earnings DCF, Paylocity Holding's most-likely value is about $268 versus a recent price near $154 (74% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$89) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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