PAYX PE Ratio & Valuation,Is PAYX Overvalued

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 20.78 is considered Undervalued compared with the five-year average of 27.63. The fair price of Paychex Inc (PAYX) is between 165.53 to 195.56 according to relative valuation methord. Compared to the current price of 115.38 USD , Paychex Inc is Undervalued By 30.3%.

Relative Value

Fair Zone

165.53-195.56

Current Price：115.38

30.3%

Undervalued

20.76

14.27

EV/EBITDA

Paychex Inc. (PAYX) has a current EV/EBITDA of 14.27. The 5-year average EV/EBITDA is 18.82. The thresholds are as follows: Strongly Undervalued below 14.67, Undervalued between 14.67 and 16.75, Fairly Valued between 20.90 and 16.75, Overvalued between 20.90 and 22.97, and Strongly Overvalued above 22.97. The current Forward EV/EBITDA of 14.27 falls within the Strongly Undervalued range.

15.81

EV/EBIT

Paychex Inc. (PAYX) has a current EV/EBIT of 15.81. The 5-year average EV/EBIT is 20.62. The thresholds are as follows: Strongly Undervalued below 15.95, Undervalued between 15.95 and 18.28, Fairly Valued between 22.96 and 18.28, Overvalued between 22.96 and 25.29, and Strongly Overvalued above 25.29. The current Forward EV/EBIT of 15.81 falls within the Strongly Undervalued range.

6.27

Paychex Inc. (PAYX) has a current PS of 6.27. The 5-year average PS is 8.41. The thresholds are as follows: Strongly Undervalued below 6.73, Undervalued between 6.73 and 7.57, Fairly Valued between 9.25 and 7.57, Overvalued between 9.25 and 10.09, and Strongly Overvalued above 10.09. The current Forward PS of 6.27 falls within the Strongly Undervalued range.

17.66

P/OCF

Paychex Inc. (PAYX) has a current P/OCF of 17.66. The 5-year average P/OCF is 23.68. The thresholds are as follows: Strongly Undervalued below 18.10, Undervalued between 18.10 and 20.89, Fairly Valued between 26.46 and 20.89, Overvalued between 26.46 and 29.25, and Strongly Overvalued above 29.25. The current Forward P/OCF of 17.66 falls within the Strongly Undervalued range.

21.66

P/FCF

Paychex Inc. (PAYX) has a current P/FCF of 21.66. The 5-year average P/FCF is 24.75. The thresholds are as follows: Strongly Undervalued below 19.13, Undervalued between 19.13 and 21.94, Fairly Valued between 27.55 and 21.94, Overvalued between 27.55 and 30.36, and Strongly Overvalued above 30.36. The current Forward P/FCF of 21.66 falls within the Undervalued range.

Paychex Inc (PAYX) has a current Price-to-Book (P/B) ratio of 10.46. Compared to its 3-year average P/B ratio of 12.25 , the current P/B ratio is approximately -14.59% higher. Relative to its 5-year average P/B ratio of 12.72, the current P/B ratio is about -17.73% higher. Paychex Inc (PAYX) has a Forward Free Cash Flow (FCF) yield of approximately 4.48%. Compared to its 3-year average FCF yield of 3.77%, the current FCF yield is approximately 18.91% lower. Relative to its 5-year average FCF yield of 3.52% , the current FCF yield is about 27.30% lower.

10.45

P/B

Median3y

12.25

Median5y

12.72

4.48

FCF Yield

Median3y

3.77

Median5y

3.52

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

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PAYX decreased by 17.72% 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 -11.39%to the performance.

Overall, the performance of PAYX in the past 1 year is driven by Revenue Growth. Which is more sustainable.

16.80%

1.32B → 1.54B

Revenue Growth

-23.13%

32.42 → 24.92

Margin Expansion

-11.39%

29.18 → 25.85

P/E Change

-17.72%

140.22 → 115.38

Mkt Cap Growth

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Frequently Asked Questions

Is Paychex Inc (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 165.53 to 195.56 according to relative valuation methord.

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

What is the current P/B ratio for Paychex Inc (PAYX) as of Dec 16 2025?

As of Dec 16 2025, Paychex Inc (PAYX) has a P/B ratio of 10.46. This indicates that the market values PAYX at 10.46 times its book value.

What is the current FCF Yield for Paychex Inc (PAYX) as of Dec 16 2025?

As of Dec 16 2025, Paychex Inc (PAYX) has a FCF Yield of 4.48%. This means that for every dollar of Paychex Inc’s market capitalization, the company generates 4.48 cents in free cash flow.

What is the current Forward P/E ratio for Paychex Inc (PAYX) as of Dec 16 2025?

As of Dec 16 2025, Paychex Inc (PAYX) has a Forward P/E ratio of 20.78. This means the market is willing to pay $20.78 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 Dec 16 2025?

As of Dec 16 2025, Paychex Inc (PAYX) has a Forward P/S ratio of 6.27. This means the market is valuing PAYX at $6.27 for every dollar of expected revenue over the next 12 months.

PAYX Valuation