PAYX Relative Valuation
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. If the market price exceeds this fair value range, PAYX is overvalued; if below, it's undervalued.
Historical Valuation
Paychex Inc (PAYX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.51 is considered Undervalued compared with the five-year average of 27.68. The fair price of Paychex Inc (PAYX) is between 163.64 to 193.17 according to relative valuation methord. Compared to the current price of 113.39 USD , Paychex Inc is Undervalued By 30.71%.
Relative Value
Fair Zone
163.64-193.17
Current Price：113.39
30.71%
Undervalued
20.21
PE
1Y
3Y
5Y
Trailing
Forward
13.90
EV/EBITDA
Paychex Inc. (PAYX) has a current EV/EBITDA of 13.90. The 5-year average EV/EBITDA is 18.85. The thresholds are as follows: Strongly Undervalued below 14.75, Undervalued between 14.75 and 16.80, Fairly Valued between 20.91 and 16.80, Overvalued between 20.91 and 22.96, and Strongly Overvalued above 22.96. The current Forward EV/EBITDA of 13.90 falls within the Strongly Undervalued range.
15.88
EV/EBIT
Paychex Inc. (PAYX) has a current EV/EBIT of 15.88. The 5-year average EV/EBIT is 20.66. The thresholds are as follows: Strongly Undervalued below 16.07, Undervalued between 16.07 and 18.37, Fairly Valued between 22.96 and 18.37, Overvalued between 22.96 and 25.26, and Strongly Overvalued above 25.26. The current Forward EV/EBIT of 15.88 falls within the Strongly Undervalued range.
6.18
PS
Paychex Inc. (PAYX) has a current PS of 6.18. The 5-year average PS is 8.42. The thresholds are as follows: Strongly Undervalued below 6.78, Undervalued between 6.78 and 7.60, Fairly Valued between 9.25 and 7.60, Overvalued between 9.25 and 10.07, and Strongly Overvalued above 10.07. The current Forward PS of 6.18 falls within the Strongly Undervalued range.
17.35
P/OCF
Paychex Inc. (PAYX) has a current P/OCF of 17.35. The 5-year average P/OCF is 23.71. The thresholds are as follows: Strongly Undervalued below 18.22, Undervalued between 18.22 and 20.97, Fairly Valued between 26.46 and 20.97, Overvalued between 26.46 and 29.21, and Strongly Overvalued above 29.21. The current Forward P/OCF of 17.35 falls within the Strongly Undervalued range.
22.05
P/FCF
Paychex Inc. (PAYX) has a current P/FCF of 22.05. The 5-year average P/FCF is 24.79. The thresholds are as follows: Strongly Undervalued below 19.23, Undervalued between 19.23 and 22.01, Fairly Valued between 27.58 and 22.01, Overvalued between 27.58 and 30.36, and Strongly Overvalued above 30.36. The current Forward P/FCF of 22.05 falls within the Historic Trend Line -Fairly Valued range.
Paychex Inc (PAYX) has a current Price-to-Book (P/B) ratio of 10.28. Compared to its 3-year average P/B ratio of 12.29 , the current P/B ratio is approximately -16.36% higher. Relative to its 5-year average P/B ratio of 12.73, the current P/B ratio is about -19.24% higher. Paychex Inc (PAYX) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.76%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.51% , the current FCF yield is about -100.00% lower.
10.13
P/B
Median3y
12.29
Median5y
12.73
4.56
FCF Yield
Median3y
3.76
Median5y
3.51
Competitors Valuation Multiple
The average P/S ratio for PAYX's competitors is , providing a benchmark for relative valuation. Paychex Inc Corp (PAYX) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 16.80%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PAYX decreased by 20.29% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.32B to 1.54B.
The secondary factor is the P/E Change, contributed -13.96%to the performance.
Overall, the performance of PAYX in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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