Is Paylocity Holding Corp. overvalued or undervalued?

As of 2 May 2024, Paylocity Holding Corp. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 46, a Price to Book Value of 8.88, and an EV to EBITDA of 25.89, all of which are higher than the peer averages, indicating a premium valuation compared to its competitors. For instance, Manhattan Associates, Inc. has a lower P/E of 59.33 and an EV to EBITDA of 46.19, while Jack Henry & Associates, Inc. boasts a more attractive P/E of 36.61.
In terms of stock performance, Paylocity has underperformed relative to the S&P 500 across multiple time frames, with a year-to-date return of -17.28% compared to the S&P 500's 12.22%. This trend reinforces the notion that the stock is currently overvalued given its lackluster performance and high valuation ratios.