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PAYX Valuation

Paychex Inc
$
146.260
-1.73(-1.169%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

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 27.11 is considered Undervalued compared with the five-year average of 28.03. The fair price of Paychex Inc (PAYX) is between 155.14 to 182.27 according to relative valuation methord. Compared to the current price of 147.99 USD , Paychex Inc is Undervalued By 4.61%.
Relative Value
Fair Zone
155.14-182.27
Current Price:147.99
4.61%
Undervalued
27.11
PE
1Y
3Y
5Y
Trailing
Forward
18.18
EV/EBITDA
Paychex Inc. (PAYX) has a current EV/EBITDA of 18.18. The 5-year average EV/EBITDA is 19.03. The thresholds are as follows: Strongly Undervalued below 15.29, Undervalued between 15.29 and 17.16, Fairly Valued between 20.90 and 17.16, Overvalued between 20.90 and 22.77, and Strongly Overvalued above 22.77. The current Forward EV/EBITDA of 18.18 falls within the Historic Trend Line -Fairly Valued range.
20.35
EV/EBIT
Paychex Inc. (PAYX) has a current EV/EBIT of 20.35. The 5-year average EV/EBIT is 20.86. The thresholds are as follows: Strongly Undervalued below 16.53, Undervalued between 16.53 and 18.69, Fairly Valued between 23.03 and 18.69, Overvalued between 23.03 and 25.19, and Strongly Overvalued above 25.19. The current Forward EV/EBIT of 20.35 falls within the Historic Trend Line -Fairly Valued range.
8.15
PS
Paychex Inc. (PAYX) has a current PS of 8.15. The 5-year average PS is 8.45. The thresholds are as follows: Strongly Undervalued below 6.88, Undervalued between 6.88 and 7.66, Fairly Valued between 9.23 and 7.66, Overvalued between 9.23 and 10.02, and Strongly Overvalued above 10.02. The current Forward PS of 8.15 falls within the Historic Trend Line -Fairly Valued range.
23.69
P/OCF
Paychex Inc. (PAYX) has a current P/OCF of 23.69. The 5-year average P/OCF is 23.91. The thresholds are as follows: Strongly Undervalued below 18.84, Undervalued between 18.84 and 21.37, Fairly Valued between 26.44 and 21.37, Overvalued between 26.44 and 28.98, and Strongly Overvalued above 28.98. The current Forward P/OCF of 23.69 falls within the Historic Trend Line -Fairly Valued range.
25.19
P/FCF
Paychex Inc. (PAYX) has a current P/FCF of 25.19. The 5-year average P/FCF is 24.70. The thresholds are as follows: Strongly Undervalued below 18.92, Undervalued between 18.92 and 21.81, Fairly Valued between 27.59 and 21.81, Overvalued between 27.59 and 30.48, and Strongly Overvalued above 30.48. The current Forward P/FCF of 25.19 falls within the Historic Trend Line -Fairly Valued range.
Paychex Inc (PAYX) has a current Price-to-Book (P/B) ratio of 12.92. Compared to its 3-year average P/B ratio of 12.60 , the current P/B ratio is approximately 2.58% higher. Relative to its 5-year average P/B ratio of 12.66, the current P/B ratio is about 2.08% higher. Paychex Inc (PAYX) has a Forward Free Cash Flow (FCF) yield of approximately 3.24%. Compared to its 3-year average FCF yield of 3.66%, the current FCF yield is approximately -11.36% lower. Relative to its 5-year average FCF yield of 3.54% , the current FCF yield is about -8.38% lower.
12.92
P/B
Median3y
12.60
Median5y
12.66
3.21
FCF Yield
Median3y
3.66
Median5y
3.54

Competitors Valuation Multiple

The average P/S ratio for PAYX's competitors is 8.73, providing a benchmark for relative valuation. Paychex Inc Corp (PAYX) exhibits a P/S ratio of 8.15, which is -6.56% above the industry average. Given its robust revenue growth of 10.21%, this premium appears unsustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of PAYX increased by 14.25% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 24.29 to 32.31.
The secondary factor is the Revenue Growth, contributed 10.21%to the performance.
Overall, the performance of PAYX in the past 1 year is driven by P/E Change. Which is more unsustainable.
10.21%
1.30B → 1.43B
Revenue Growth
+
-29.01%
29.33 → 20.82
Margin Expansion
+
33.05%
24.29 → 32.31
P/E Change
=
14.25%
128.02 → 146.26
Mkt Cap Growth

FAQ

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Is Paychex Inc (PAYX) currently overvalued or undervalued?

Paychex Inc (PAYX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 27.11 is considered Undervalued compared with the five-year average of 28.03. The fair price of Paychex Inc (PAYX) is between 155.14 to 182.27 according to relative valuation methord. Compared to the current price of 147.99 USD , Paychex Inc is Undervalued By 4.61% .
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What is Paychex Inc (PAYX) fair value?

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

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What is the current P/B ratio for Paychex Inc (PAYX) as of Jul 29 2025?

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What is the current FCF Yield for Paychex Inc (PAYX) as of Jul 29 2025?

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What is the current Forward P/E ratio for Paychex Inc (PAYX) as of Jul 29 2025?

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What is the current Forward P/S ratio for Paychex Inc (PAYX) as of Jul 29 2025?