Paychex Stock Current Valuation

PAYX Stock  USD 121.53  1.95  1.63%   
Valuation analysis of Paychex helps investors to measure Paychex's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. Enterprise Value Multiple is likely to rise to 25.39 in 2024. Fundamental drivers impacting Paychex's valuation include:
Price Book
12.2115
Enterprise Value
42.5 B
Enterprise Value Ebitda
18.0211
Price Sales
8.3476
Forward PE
23.6967
Fairly Valued
Today
121.53
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.
Our valuation method for Paychex is useful when determining the fair value of the Paychex stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Paychex. 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  121.53 Real  120.43 Target  119.92 Hype  121.5 Naive  121.51
The real value of Paychex Stock, also known as its intrinsic value, is the underlying worth of Paychex Company, which is reflected in its stock price. It is based on Paychex's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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.
119.63
Downside
120.43
Real Value
133.68
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
1.281.371.39
Details
Hype
Prediction
LowEstimatedHigh
120.70121.50122.30
Details
Potential
Annual Dividend
LowForecastedHigh
2.492.542.58
Details
21 Analysts
Consensus
LowTarget PriceHigh
109.13119.92133.11
Details

Paychex Current Valuation Analysis

Paychex's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total881.2M865.7M995.6M513.2M
Total Assets9.6B10.5B12.1B12.7B

Enterprise Value

 = 

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current Paychex Current Valuation

    
  42.51 B  
Most of Paychex's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Paychex is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Paychex Current Valuation Driver Correlations

Understanding the fundamental principles of building solid financial models for Paychex is extremely important. It helps to project a fair market value of Paychex Stock properly, considering its historical fundamentals such as Current Valuation. Since Paychex's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Paychex's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Paychex's interrelated accounts and indicators.
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Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition

In accordance with the recently published financial statements, Paychex has a Current Valuation of 42.51 B. This is much higher than that of the Professional Services sector and significantly higher than that of the Industrials industry. The current valuation for all United States stocks is 155.69% lower than that of the firm.

Paychex Current Valuation Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Paychex's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Paychex could also be used in its relative valuation, which is a method of valuing Paychex by comparing valuation metrics of similar companies.
Paychex is currently under evaluation in current valuation category among related companies.

Paychex ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Paychex's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Paychex's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Paychex Fundamentals

About Paychex Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Paychex's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Paychex using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Paychex based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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.

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When determining whether Paychex offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Paychex's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Paychex Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Paychex Stock:
Check out Paychex Piotroski F Score and Paychex Altman Z Score analysis.
For more information on how to buy Paychex Stock please use our How to Invest in Paychex guide.
You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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Is Paychex's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Paychex. If investors know Paychex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Paychex listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.091
Dividend Share
3.46
Earnings Share
4.5
Revenue Per Share
14.294
Quarterly Revenue Growth
0.057
The market value of Paychex is measured differently than its book value, which is the value of Paychex that is recorded on the company's balance sheet. Investors also form their own opinion of Paychex's value that differs from its market value or its book value, called intrinsic value, which is Paychex's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Paychex's market value can be influenced by many factors that don't directly affect Paychex's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Paychex's value and its price as these two are different measures arrived at by different means. Investors typically determine if Paychex is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Paychex's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.