Paychex, Inc.

LSE:0KGE Stock Report

Market Cap: US$53.2b

Paychex Valuation

Is 0KGE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 0KGE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$173.25
Fair Value
14.9% undervalued intrinsic discount
15
Number of Analysts

Below Fair Value: 0KGE ($147.48) is trading below our estimate of fair value ($173.25)

Significantly Below Fair Value: 0KGE is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0KGE?

Key metric: As 0KGE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0KGE. This is calculated by dividing 0KGE's market cap by their current earnings.
What is 0KGE's PE Ratio?
PE Ratio30.9x
EarningsUS$1.72b
Market CapUS$53.17b

Price to Earnings Ratio vs Peers

How does 0KGE's PE Ratio compare to its peers?

The above table shows the PE ratio for 0KGE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29x
PAGE PageGroup
20.3x19.4%UK£1.0b
EXPN Experian
41x12.4%UK£38.8b
REL RELX
39.4x9.1%UK£74.6b
LTG Learning Technologies Group
15.3x-10.6%UK£724.3m
0KGE Paychex
30.9x6.4%US$53.2b

Price-To-Earnings vs Peers: 0KGE is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the peer average (29x).

Price to Earnings Ratio vs Industry

How does 0KGE's PE Ratio compare vs other companies in the GB Professional Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IBPO iEnergizer
1.7xn/aUS$140.06m
TEK Tekcapital
1.8xn/aUS$25.04m
No more companies available in this PE range
No. of Companies3PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0KGE is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the UK Professional Services industry average (28.6x).

Price to Earnings Ratio vs Fair Ratio

What is 0KGE'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.

0KGE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.9x
Fair PE Ratio32.3x

Price-To-Earnings vs Fair Ratio: 0KGE is good value based on its Price-To-Earnings Ratio (30.9x) compared to the estimated Fair Price-To-Earnings Ratio (32.3x).

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 0KGE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$147.48
US$139.47
-5.4%
5.4%US$150.00US$120.00n/a15
Jan ’26US$140.28
US$137.94
-1.7%
6.8%US$150.00US$115.00n/a16
Dec ’25US$146.27
US$134.20
-8.3%
7.1%US$150.00US$115.00n/a16
Nov ’25US$139.12
US$133.01
-4.4%
6.7%US$148.00US$115.00n/a16
Oct ’25US$140.80
US$128.42
-8.8%
7.3%US$148.00US$115.00n/a16
Sep ’25US$130.01
US$121.23
-6.7%
4.7%US$130.00US$110.00n/a16
Aug ’25US$126.32
US$121.28
-4.0%
4.7%US$130.00US$110.00n/a17
Jul ’25US$116.63
US$121.22
+3.9%
4.7%US$130.00US$110.00n/a17
Jun ’25US$119.73
US$120.87
+1.0%
4.4%US$130.00US$111.00n/a17
May ’25US$121.62
US$120.78
-0.7%
4.3%US$130.00US$111.00n/a18
Apr ’25US$122.45
US$121.22
-1.0%
4.7%US$130.00US$108.00n/a18
Mar ’25US$122.36
US$121.28
-0.9%
4.7%US$130.00US$108.00n/a18
Feb ’25US$120.78
US$121.11
+0.3%
5.0%US$130.00US$105.00US$147.4818
Jan ’25US$118.75
US$120.86
+1.8%
5.2%US$130.00US$105.00US$140.2817
Dec ’24US$123.49
US$120.81
-2.2%
6.7%US$134.00US$106.00US$146.2717
Nov ’24US$108.59
US$120.86
+11.3%
6.9%US$134.00US$106.00US$139.1216
Oct ’24US$115.38
US$121.53
+5.3%
7.1%US$134.00US$106.00US$140.8016
Sep ’24US$122.82
US$120.74
-1.7%
7.8%US$135.00US$103.00US$130.0117
Aug ’24US$125.92
US$119.15
-5.4%
7.2%US$135.00US$103.00US$126.3217
Jul ’24US$111.42
US$118.50
+6.4%
6.9%US$135.00US$103.00US$116.6317
Jun ’24US$107.18
US$121.72
+13.6%
7.9%US$140.00US$105.00US$119.7316
May ’24US$109.84
US$121.72
+10.8%
7.9%US$140.00US$105.00US$121.6216
Apr ’24US$113.90
US$122.62
+7.7%
6.3%US$140.00US$109.00US$122.4516
Mar ’24US$110.61
US$121.87
+10.2%
6.3%US$140.00US$110.00US$122.3616
Feb ’24US$115.75
US$121.87
+5.3%
6.3%US$140.00US$110.00US$120.7816
Analyst Price Target
Consensus Narrative from 15 Analysts
US$139.29
Fair Value
5.9% overvalued intrinsic discount
15
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/01 10:56
End of Day Share Price 2025/01/31 00:00
Earnings2024/11/30
Annual Earnings2024/05/31

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 here.

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 .

Analyst Sources

Paychex, Inc. is covered by 44 analysts. 15 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
Ishan MajumdarBaptista Research