Paychex Valuation
| PAYX Stock | USD 145.44 1.88 1.31% |
At this time, the company appears to be undervalued. Paychex holds a recent Real Value of $153.83 per share. The prevailing price of the company is $145.44. Our model determines the value of Paychex from analyzing the company fundamentals such as Operating Margin of 0.41 %, return on equity of 0.46, and Shares Outstanding of 360.06 M as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Paychex's price fluctuation is very steady at this time. Calculation of the real value of Paychex is based on 3 months time horizon. Increasing Paychex's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Paychex is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Paychex Stock. However, Paychex's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 145.44 | Real 153.83 | Hype 145.33 | Naive 141.67 |
The intrinsic value of Paychex's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Paychex's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Paychex helps investors to forecast how Paychex stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Paychex more accurately as focusing exclusively on Paychex's fundamentals will not take into account other important factors: Paychex Total Value Analysis
Paychex is at this time anticipated to have valuation of 51.99 B with market capitalization of 52.37 B, debt of 885.5 M, and cash on hands of 1.23 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Paychex fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
51.99 B | 52.37 B | 885.5 M | 1.23 B |
Paychex Investor Information
About 81.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 7th of February 2025. Paychex had 3:2 split on the 23rd of May 2000. Based on the key measurements obtained from Paychex's financial statements, Paychex is not in a good financial situation at this time. It has a very high probability of going through financial hardship in April.Paychex Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Paychex has an asset utilization ratio of 50.84 percent. This suggests that the Company is making $0.51 for each dollar of assets. An increasing asset utilization means that Paychex is more efficient with each dollar of assets it utilizes for everyday operations.Paychex Ownership Allocation
Paychex owns a total of 360.06 Million outstanding shares. The majority of Paychex outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Paychex to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Paychex. Please pay attention to any change in the institutional holdings of Paychex as this could imply that something significant has changed or is about to change at the company. On March 7, 2025, Representative Josh Gottheimer of US Congress acquired under $15k worth of Paychex's common stock.Paychex Profitability Analysis
The company reported the previous year's revenue of 5.28 B. Net Income was 1.69 B with profit before overhead, payroll, taxes, and interest of 3.86 B.Paychex Past Distributions to stockholders
About Paychex Valuation
Our relative valuation model uses a comparative analysis of Paychex. We calculate exposure to Paychex's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Paychex's related companies.Paychex, Inc. provides integrated human capital management solutions for human resources , payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. The company was founded in 1971 and is headquartered in Rochester, New York. Paychex operates under Staffing Employment Services classification in the United States and is traded on NASDAQ Exchange. It employs 16000 people.
A single share of Paychex represents a small ownership stake in the entity. As a stockholder of Paychex, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Paychex Dividends Analysis For Valuation
There are various types of dividends Paychex can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Paychex shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Paychex directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Paychex pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Paychex by the value of the dividends paid out.
Paychex Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 362.1 M | |
| Quarterly Earnings Growth Y O Y | 0.056 | |
| Forward Price Earnings | 27.3973 |
Additional Tools for Paychex Stock Analysis
When running Paychex's price analysis, check to measure Paychex's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Paychex is operating at the current time. Most of Paychex's value examination focuses on studying past and present price action to predict the probability of Paychex's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Paychex's price. Additionally, you may evaluate how the addition of Paychex to your portfolios can decrease your overall portfolio volatility.