PAYX PE Ratio & Valuation, Is PAYX Overvalued

Historical Valuation

Paychex Inc (PAYX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 19.10 is considered Undervalued compared with the five-year average of 27.44. The fair price of Paychex Inc (PAYX) is between 121.21 to 148.90 according to relative valuation method. Compared to the current price of 94.48 USD , Paychex Inc By Undervalued By 22.06%.

Relative Value

Fair Zone

121.21-148.90

Current Price：94.48

22.06%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

Unlock 5-Year Valuation Change

Is Paychex Inc (PAYX) at a historical peak or a rare bargain? Access the full 5-year trend to find out.

Unlock Now

Paychex Inc (PAYX) has a current Price-to-Book (P/B) ratio of 10.05. Compared to its 3-year average P/B ratio of 12.18, the current P/B ratio is approximately -17.51% higher. Relative to its 5-year average P/B ratio of 12.77, the current P/B ratio is about -21.30% higher. Paychex Inc (PAYX) has a Forward Free Cash Flow (FCF) yield of approximately 5.12%. Compared to its 3-year average FCF yield of 3.80%, the current FCF yield is approximately 34.78% lower. Relative to its 5-year average FCF yield of 3.53%, the current FCF yield is about 44.92% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for PAYX competitors is 4.84, providing a benchmark for relative valuation. Paychex Inc Corp (PAYX.O) exhibits a P/S ratio of 5.83, which is 20.36% above the industry average. Given its robust revenue growth of 18.28%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of PAYX increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of PAYX in the past 1 year(s) is driven by Unknown.

People Also Watch

Frequently Asked Questions

Is PAYX currently overvalued or undervalued?

What is Paychex Inc (PAYX) fair value?

PAYX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Paychex Inc (PAYX) is between 121.21 to 148.90 according to relative valuation method.

How does PAYX's valuation metrics compare to the industry average?

The average P/S ratio for PAYX's competitors is 4.84, providing a benchmark for relative valuation. Paychex Inc Corp (PAYX) exhibits a P/S ratio of 5.83, which is 20.36% above the industry average. Given its robust revenue growth of 18.28%, this premium appears unsustainable.

What is the current P/B ratio for Paychex Inc (PAYX) as of Mar 12 2026?

As of Mar 12 2026, Paychex Inc (PAYX) has a P/B ratio of 10.05. This indicates that the market values PAYX at 10.05 times its book value.

What is the current FCF Yield for Paychex Inc (PAYX) as of Mar 12 2026?

As of Mar 12 2026, Paychex Inc (PAYX) has a FCF Yield of 5.12%. This means that for every dollar of Paychex Inc's market capitalization, the company generates 5.12 cents in free cash flow.

What is the current Forward P/E ratio for Paychex Inc (PAYX) as of Mar 12 2026?

As of Mar 12 2026, Paychex Inc (PAYX) has a Forward P/E ratio of 19.10. This means the market is willing to pay $19.10 for every dollar of Paychex Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Paychex Inc (PAYX) as of Mar 12 2026?

As of Mar 12 2026, Paychex Inc (PAYX) has a Forward P/S ratio of 5.83. This means the market is valuing PAYX at $5.83 for every dollar of expected revenue over the next 12 months.

PAYX Valuation