Valuation Trading Multiples & Precedent Transactions: Enterprise Human Capital Management Software
Valuation benchmarks for Enterprise Human Capital Management Software. Access public trading comps, EV/EBITDA acquisition multiples, and private market data for pitch books and valuation analysis.
1.1 - Enterprise Human Capital Management Software Market Context & Valuation Drivers
Companies in this trading comparables group are public, cloud software providers delivering enterprise human capital management platforms that centralize HR, payroll, time, and talent workflows. Their subscription, per‑employee pricing and multi-module suites drive recurring revenue and high gross margins. They are grouped as valuation benchmarks given similar product scope, buyer profiles, and scale economics across HCM suites serving mid‑market and enterprise employers.
Typical capabilities span core HRIS and employee records, end‑to‑end payroll processing with tax filing, time and labor management, and benefits administration with carrier integrations. Suites extend into recruiting and onboarding, performance and compensation management, learning and development, and workforce analytics with dashboards and compliance reporting. Vendors provide mobile employee self‑service, manager workflows, APIs and prebuilt integrations to ERP/finance systems, and multi‑jurisdiction compliance for U.S. and international employers.
Primary buyers include HR, payroll, and finance teams at mid‑market companies, large enterprises, and public sector employers. Key valuation drivers include ARR growth, net revenue retention, gross margin profile, and Rule of 40 performance, underpinned by sticky, mission‑critical workflows. Outcomes for customers include improved payroll accuracy, lower administrative cost, better compliance, and higher employee engagement through modern self‑service and analytics.
2. Valuation Analysis: Public Trading Comps & Multiples for Enterprise Human Capital Management Software companies
2.1 - Public Peer Groups & Median Valuation Multiples for Enterprise Human Capital Management Software sector
Comparable group 1: Enterprise Human Capital Management Software
Paycom Software
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of online payroll and human resource management software, offering cloud-based solutions to simplify HR processes and empower employee self-service, encompassing areas such as payroll, talent management, HR compliance, and time tracking.
- Key Products:
- Payroll: End-to-end payroll processing solution
- Talent Management: Tools for employee performance and development
- HR Management: Streamlined human resources workflows and compliance
- Time and Labor Management: Automated time tracking and attendance
- Employee Self-Service: Mobile and desktop access for employees to manage their HR information.
Paylocity
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of cloud-based payroll and human capital management solutions, servicing small to midsize clients with functionalities that include payroll processing, benefits administration, talent management, time tracking, and employee engagement tools.
- Key Products:
- Payroll Processing: Automates the calculation, distribution, and reporting of employee pay
- Benefits Administration: Manages employee benefit programs including health, dental, and retirement plans
- Talent Management: Includes recruiting, onboarding, performance management, and training tools
- Time Tracking: Monitors employee attendance, schedules, and time-off requests
- Employee Engagement Tools: Features such as surveys, peer recognition, and community forums to enhance workplace culture.