Paychex, Inc.

LSE:0KGE Stock Report

Market Cap: US$52.0b

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.

Below Fair Value: 0KGE ($144.53) is trading below our estimate of fair value ($151.52)

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 Ratio30.6x
EarningsUS$1.70b
Market CapUS$51.99b

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 Average25.8x
PAGE PageGroup
21.3x28.2%UK£1.1b
EXPN Experian
37x12.7%UK£34.9b
REL RELX
36.5x8.1%UK£69.1b
STEM SThree
8.1x1.8%UK£460.1m
0KGE Paychex
30.6x6.3%US$52.0b

Price-To-Earnings vs Peers: 0KGE is expensive based on its Price-To-Earnings Ratio (30.6x) compared to the peer average (25.8x).

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
1.5xn/aUS$20.74m
No more companies available in this PE range
0KGE 30.6xIndustry Avg. 23.5xNo. of Companies4PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0KGE is expensive based on its Price-To-Earnings Ratio (30.6x) compared to the UK Professional Services industry average (23.5x).

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 Ratio30.6x
Fair PE Ratio34.3x

Price-To-Earnings vs Fair Ratio: 0KGE is good value based on its Price-To-Earnings Ratio (30.6x) compared to the estimated Fair Price-To-Earnings Ratio (34.3x).

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$144.53
US$134.20
-7.1%
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$105.00n/a18
Jan ’25US$118.75
US$120.86
+1.8%
5.2%US$130.00US$105.00n/a17
Dec ’24US$123.49
US$120.81
-2.2%
6.7%US$134.00US$106.00n/a17
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
Jan ’24US$115.72
US$122.18
+5.6%
6.0%US$140.00US$114.00US$118.7516
Dec ’23US$125.38
US$125.93
+0.4%
6.1%US$140.00US$114.00US$123.4916
Nov ’23US$117.26
US$125.93
+7.4%
6.1%US$140.00US$114.00US$108.5916

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

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