Paychex, Inc.

WBAG:PAYX Stock Report

Market Cap: €34.6b

Paychex Valuation

Is PAYX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PAYX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

€122.19
Fair Value
21.0% undervalued intrinsic discount
14
Number of Analysts

Below Fair Value: PAYX (€96.55) is trading below our estimate of fair value (€122.19)

Significantly Below Fair Value: PAYX is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PAYX?

Key metric: As PAYX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PAYX. This is calculated by dividing PAYX's market cap by their current earnings.
What is PAYX's PE Ratio?
PE Ratio24.9x
EarningsUS$1.61b
Market CapUS$40.20b

Price to Earnings Ratio vs Peers

How does PAYX's PE Ratio compare to its peers?

The above table shows the PE ratio for PAYX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.8x
6098 Recruit Holdings
26x9.92%JP¥11.3t
ADP Automatic Data Processing
25x6.72%US$103.3b
DOC DO & CO
20.7x18.14%€2.1b
PAYC Paycom Software
19.5x8.95%US$8.8b
PAYX Paychex
24.9x10.51%€40.2b

Price-To-Earnings vs Peers: PAYX is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (22.8x).

Price to Earnings Ratio vs Industry

How does PAYX's PE Ratio compare vs other companies in the European Professional Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
PAYX 24.9xIndustry Avg. 19.3xNo. of Companies13PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PAYX is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the European Professional Services industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is PAYX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PAYX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PAYX's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PAYX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€96.55
€116.49
+20.65%
6.40%€130.26€104.21n/a14
Nov ’26€102.12
€116.86
+14.44%
5.83%€130.13€105.84n/a14
Oct ’26€105.42
€115.76
+9.81%
5.91%€127.83€103.97n/a12
Sep ’26€119.16
€126.96
+6.54%
6.07%€137.87€105.13n/a12
Aug ’26€123.84
€127.25
+2.75%
6.81%€140.48€103.87n/a13
Jul ’26€124.98
€124.25
-0.59%
7.77%€140.96€104.22n/a15
Jun ’26€139.34
€129.07
-7.37%
6.69%€139.40€107.64n/a15
May ’26€128.04
€128.45
+0.32%
6.33%€140.00€115.19n/a15
Apr ’26€143.02
€133.96
-6.34%
6.31%€145.96€120.09n/a15
Mar ’26€144.48
€135.17
-6.45%
5.52%€147.17€116.18n/a15
Feb ’26€142.50
€135.46
-4.94%
5.38%€145.68€116.54n/a15
Jan ’26€133.96
€132.30
-1.24%
6.80%€143.87€110.30n/a16
Dec ’25€138.44
€126.65
-8.51%
7.10%€141.57€108.54€96.5516
Nov ’25€128.82
€121.24
-5.89%
6.74%€134.90€104.82€102.1216
Oct ’25€126.06
€116.02
-7.97%
7.27%€133.70€103.89€105.4216
Sep ’25€117.26
€108.96
-7.07%
4.67%€116.84€98.87€119.1616
Aug ’25€117.04
€112.86
-3.57%
4.67%€120.98€102.37€123.8417
Jul ’25€109.46
€113.16
+3.38%
4.66%€121.36€102.69€124.9817
Jun ’25€110.12
€112.67
+2.32%
4.44%€121.19€103.47€139.3417
May ’25€111.06
€113.19
+1.92%
4.33%€121.84€104.03€128.0418
Apr ’25€113.30
€110.85
-2.17%
4.69%€118.87€98.76€143.0218
Mar ’25€112.80
€112.34
-0.41%
4.70%€120.42€100.04€144.4818
Feb ’25€110.40
€110.45
+0.049%
5.05%€118.56€95.76€142.5018
Jan ’25€108.20
€109.75
+1.43%
5.16%€118.04€95.34€133.9617
Dec ’24€112.90
€112.95
+0.047%
6.65%€125.29€99.11€138.4417
€115.96
Fair Value
16.7% undervalued intrinsic discount
14
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/12/01 19:50
End of Day Share Price 2025/11/28 00:00
Earnings2025/08/31
Annual Earnings2025/05/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Paychex, Inc. is covered by 34 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Mark MarconBaird
Daniel JesterBMO Capital Markets Equity Research