Paychex Inc
NASDAQ:PAYX
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Paychex Inc
NASDAQ:PAYX
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Intrinsic Value
The intrinsic value of Paychex Inc (PAYX) under the Base Case is 118.31 USD per share.
Compared with the current market price of 118.39 USD, the stock appears
Fairly Valued .
The intrinsic value is calculated using the DCF method. The model assumes Paychex's revenue grows about 5.3% a year over the next five years, versus 10% over the last five. If revenue growth repeated that past pace, the estimate would be about $184.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Paychex Does
Paychex helps small and mid-sized businesses handle payroll, tax filing, and basic human resources work. Its products cover paying employees, calculating and remitting payroll taxes, keeping worker records, and helping employers manage benefits, retirement plans, and compliance paperwork. Many customers use Paychex because they do not want to build a full payroll and HR department in-house.
- Headquarters
- United States of America US
- Employees
- 19 000
- IPO date
- Aug 26, 1983
Paychex has a wide economic moat
Replacing Paychex means moving payroll records, checking tax balances and rebuilding connections to other workplace systems, rather than simply choosing a cheaper service. When employers also use its benefits and employee management tools, the work involved in replacing those connected services gives them more reasons to stay.
Read the full moat analysis
Revenue & Expenses Breakdown
Paychex Inc
Earnings Waterfall
Paychex Inc
The intrinsic value for Paychex Inc (PAYX) under the Base Case is 118.31 USD.
Compared with the current market price of 118.39 USD, the stock appears Fairly Valued .