Value + Quality + Cash Flow Is King
Scott Kaufman from The Dividend Kings explains the large rotation from growth focused investments to being overwhelmingly focused on value. Strict valuation discipline, exiting quality names like Enbr...
Fiscal Year: June - May
Paychex, Inc. (PAYX), listed on the NASDAQ, has a market capitalization of $33.24B. As of Mar 14, 2026, the stock is trading at $92.61 per share@else an unavailable price , offering investors a clear view of its current market value. Paychex, Inc. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 20.95, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Paychex, Inc. also offers a dividend yield of 4.67%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Paychex, Inc. (PAYX) may be undervalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Paychex, Inc. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Paychex, Inc., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Paychex, Inc. is 16.66, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Paychex, Inc. (PAYX) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Paychex, Inc. (PAYX) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be undervalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Paychex, Inc. (PAYX) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Paychex, Inc.. To access the full SS Score, consider upgrading your subscription.
Paychex, Inc. is a significant player in the industry sector, with a market capitalization of $33.24B and a competitive P/E ratio of 20.95. Investors should compare these metrics with industry peers to gauge whether Paychex, Inc. is outperforming or underperforming within its sector.
Scott Kaufman from The Dividend Kings explains the large rotation from growth focused investments to being overwhelmingly focused on value. Strict valuation discipline, exiting quality names like Enbr...
ROCHESTER, N.Y.--(BUSINESS WIRE)--Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management ("HCM") company, will release financial results for its fiscal 2026 third quarter ended Feb...
ROCHESTER, N.Y.--(BUSINESS WIRE)--Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management (HCM) company, today announced that the company has received industry recognition from Ligh...
ROCHESTER, N.Y.--(BUSINESS WIRE)---- $PAYX #employmenttrends--According to the latest Paychex Small Business Employment Watch, the Small Business Jobs Index registered 98.77 in February. Meanwhile, ho...
My watchlist aims to surface high-quality, attractively valued dividend stocks with the potential for double-digit total returns over 3–5 years. The original process blends quality and value, while pu...
ROCHESTER, N.Y.--(BUSINESS WIRE)--Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management (HCM) company, announced today new AI-driven advancements within its Paycor® and Paychex Fl...
My methodology blends forward P/E ratios, company size, and default risk to rank Nasdaq 100 constituents by valuation. TSLA, INTC, AXON, PLTR, and CRWD are the most overvalued; PYPL, CTSH, ADBE, KHC, ...
Paychex remains a "Buy," trading at a 28% discount to fair value with robust fundamentals and a stable BBB+ credit rating. PAYX's Paycor acquisition is exceeding synergy targets, driving up-market gro...
ROCHESTER, N.Y.--(BUSINESS WIRE)---- $PAYX #employmenttrends--According to the January Paychex Small Business Employment Watch, job and wage growth trends among U.S. small businesses remained consiste...
My top 10 dividend watchlist targets a 12% long-term CAGR with a higher yield than VYM and SPY, focusing on quality and value. January 2026 saw the watchlist gain 1.12%, trailing VYM and SPY but maint...
We believe Paychex (PAYX) shares may represent a solid value investment at current levels, as the stock trades at a valuation below its historical average despite steady execution across the business....
We believe Paychex (PAYX) stock might be an attractive value buy. It is currently trading at a valuation lower than average, and boasts reasonable revenue growth along with strong margins that accompa...
As we head into 2026, there is always some buzz around the repositioning of portfolios and looking for the best opportunities. I tend to always be on the hunt for opportunities throughout the year, bu...
ROCHESTER, N.Y.--(BUSINESS WIRE)--Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management (HCM) company, announced today that the company's Board of Directors has voted to expand to...
ROCHESTER, N.Y.--(BUSINESS WIRE)--Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management ("HCM") company, today announced that its Board of Directors has authorized the purchase of...
Paychex, Inc. demonstrates robust fundamentals and growth, supported by its Paycor acquisition and strong exposure to SMBs. PAYX's valuation remains attractive, trading below historical averages, with...
ROCHESTER, N.Y.--(BUSINESS WIRE)--Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management (HCM) company, announced today a new partnership with PayPal (Nasdaq: PYPL) within its Payc...
ROCHESTER, N.Y.--(BUSINESS WIRE)---- $PAYX #employmenttrends--According to the Paychex Small Business Employment Watch, 2025 marked a year of consistency for U.S. small business job and wage growth tr...
My high-yield dividend watchlist aims for quality stocks at attractive valuations, with a long-term CAGR target of 12%. In December 2025, the watchlist gained 0.03%, outperforming VYM and SPY, though ...
Paychex, Inc. (NASDAQ: PAYX) reported upbeat earnings for its fiscal second-quarter on Friday.
I rate Paychex a BUY, with a current price around $112 versus a fair value north of $150 per share. Q2 2026 earnings showed strong revenue growth (18% YoY), driven by the Paycor acquisition and solid ...
CNBC's Jim Cramer talks with Paychex president and CEO John Gibson about the state of small business, the labor market, its latest earnings report and more.
CNBC's Jim Cramer talks with Paychex president and CEO John Gibson about the state of small business, the labor market and more.
Paychex, Inc. ( PAYX) Q2 2026 Earnings Call December 19, 2025 9:30 AM EST Company Participants Robert Schrader - Senior VP & CFO John Gibson - President, CEO & Director Conference Call Participants M...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
| Year | FCF Estimate | % | # Analysts |
|---|---|---|---|
| 2026 | 2.09B | Analyst x4 | |
| 2027 | 2.26B | 8.31% | Analyst x4 |
| 2028 | 2.60B | 15.05% | Analyst x2 |
| 2029 | 2.77B | 6.54% | Est @6.5% |
| 2030 | 2.91B | 5.06% | Est @5.1% |
| 2031 | 3.04B | 4.31% | Est @4.3% |
| 2032 | 3.15B | 3.78% | Est @3.8% |
| 2033 | 3.26B | 3.41% | Est @3.4% |
| 2034 | 3.36B | 2.95% | Est @2.9% |
| 2035 | 3.45B | 2.78% | Est @2.8% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
| Year | FCF | Discount Factor | PV of Future FCF |
|---|---|---|---|
| 2024A | 1.74B | 1.00 | 1.74B |
| 2025A | 1.71B | 1.00 | 1.71B |
| 2026E | 2.09B | 1.08 | 1.92B |
| 2027E | 2.26B | 1.18 | 1.92B |
| 2028E | 2.60B | 1.28 | 2.04B |
| 2029E | 2.77B | 1.39 | 2.00B |
| 2030E | 2.91B | 1.50 | 1.94B |
| 2031E | 3.04B | 1.63 | 1.86B |
| 2032E | 3.15B | 1.77 | 1.78B |
| 2033E | 3.26B | 1.92 | 1.70B |
| 2034E | 3.36B | 2.08 | 1.61B |
| 2035E | 3.45B | 2.26 | 1.53B |
| Terminal | 59.06B | 2.26 | 26.15B |
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