Paymentus Holdings, Inc. — Software - Infrastructure. Scored on the same transparent model behind the daily rankings.
★
PAY
Paymentus Holdings, Inc. · Software - Infrastructure
FCF$159mC
Rev+30.2%A
D/E0.02A
P/E54.0xC+
PEG3.45D
66.9Score
$35.61$4.5B
1Y Target$39.33Analyst consensus · 6 analysts
5Y Target$57.59Compound horizon
10Y Target$85.43Long-dated conviction
FCF$159mTTMC
FCF $159m — modest; watch for margin expansion
Rev+30.2%TTM YoYA
Revenue +30.2% — hypergrowth, top decile
D/E0.02A
D/E 0.02 — least levered decile in Technology (≈10th pctile)
P/E54.0xC+
P/E 54.0 — above the Technology median (≈75th pctile)
PEG3.45est.D
PEG 3.45 — very expensive; pricing in best-case scenarios · PEG derived: P/E ÷ forward 1-year analyst EPS growth, because this name has no vendor-supplied PEG. Same earnings-growth basis as the reported figure on other rows.
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 66.9
Quality68.5
Growth95.9
Value45.7
Entry · Margin of safety
52-week rangeMid-range
21% off the 12-month high
vs DCF fair value82% aboveest. fair value ~$20
What the price assumes: free cash flow compounding at ~26% a year for the next decade — vs the ~16% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability47% · A-gross profit ÷ total assets (Novy-Marx)
ROIC13.3% · B+return on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
PAY is the quiet compounder in cloud bill payment: 30.2% revenue growth in FY26 proves the flywheel of electronic bill presentment and payment services is accelerating, not decelerating. The company’s omni-channel platform locks in utility, telecom, and government billers with $159m of TTM free cash flow that management can deploy into buybacks or tuck-in acquisitions without raising capital. Our model’s Growth pillar at 96/100 confirms the setup: the secular shift from paper to digital billing is still in the early innings, and PAY’s 13.8% ROE shows it’s monetizing that shift better than peers. The crux: can PAY sustain 26% FCF growth implied by today’s $35.61 price without pulling forward R&D or sales spend?
Moat
PAY’s edge is the integration of bill presentment, payment processing, and self-service revenue management into a single SaaS stack that billers can’t easily rip out. Switching costs are high because the platform ingests a biller’s entire customer database, payment history, and communication workflows — a process that takes months and risks revenue leakage. The company’s 0.02 debt-to-equity signals capital-light scaling, while its 13.8% ROE stems from pricing power in regulated markets (utilities, governments) where billers pay a premium for compliance and uptime guarantees. Competitors can replicate one feature, but replicating the full stack with the same reliability is a multi-year endeavor.
Risk
The bear case is simple: P/E of 54x assumes the 26% FCF growth implied by our reverse DCF is achievable, but the company’s 6.2% profit margin suggests thin pricing power outside of regulated segments. If growth slows or margins compress, the multiple collapses and the stock grinds to a halt. The specific signal to watch is margin contraction in the enterprise segment — if utilities and telecoms push back on pricing or churn ticks up, the bull thesis breaks.
Horizon
1-3 yr $39.33 (6-analyst consensus) — fundamentals + valuation re-rating. 5 yr $57.59 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $85.43 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
PAY vs the Top Picks average
Pillar
PAY
Book avg
Diff
Quality
0.68
0.83
-0.15
Growth
0.96
0.87
+0.09
Value
0.46
0.76
-0.31
Averaged across the 30 names in today's Top Picks (mean score 81.6). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · PAY
Trend
-8.4 over 49 daily scores
From 75.3 (Jun 22) → 66.9 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
PAY at a glance
Every figure here comes from the same audited fundamentals behind the score. Charts drawn from data the score does not use say so on the card.
Analyst estimate revisions
30-day change
+5.7%
90-day change
+5.2%
Forward EPS estimate
$1.07
Over the last 90 days, what analysts expect PAY to earn is materially higher (+5.2%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.
A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →
Position sizing · PAY
$
%
%
Shares to buy
56
Position size
$1,994
4.0% of portfolio
Stop price
$26.71
25% below $35.61
$ at risk if stopped
$498.54
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Paymentus Holdings, Inc. (PAY): score, valuation & FAQ
Paymentus Holdings, Inc. (PAY) is a Software - Infrastructure company that scores 66.9 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A) and D/E (A), while PEG (D) rate weaker. On valuation, PAY sits about 82% above our discounted-cash-flow fair value — the current price implies roughly 26% annual free-cash-flow growth over the next decade.
Is PAY a good stock to buy?
Bull Rankings scores PAY 66.9 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by Rev (A) and D/E (A). A score is a quantitative screen of Paymentus Holdings, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does PAY score 66.9 on Bull Rankings?
The score leans on growth at 95.9 out of 100, with value the weakest pillar at 45.7 — the three combine geometrically, so a weak one cannot be papered over by a strong one. PAY earns its highest marks on Rev (A) and D/E (A), and is held back by PEG (D). Each signal is graded against sector-aware thresholds rather than one absolute bar, so PAY is measured against Software - Infrastructure peers, not against the market as a whole.
Is PAY overvalued or undervalued?
Based on $35.61, PAY sits about 82% above our discounted-cash-flow fair value — the current price implies roughly 26% annual free-cash-flow growth over the next decade. It trades at a 54.0x P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in PAY?
The bear case is simple: P/E of 54x assumes the 26% FCF growth implied by our reverse DCF is achievable, but the company’s 6.2% profit margin suggests thin pricing power outside of regulated segments. If growth slows or margins compress, the multiple collapses and the stock grinds to a halt. The specific signal to watch is margin contraction in the enterprise segment — if utilities and telecoms push back on pricing or churn ticks up, the bull thesis breaks.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.