Paychex, Inc.

BIT:1PAYX Stock Report

Market Cap: €34.7b

Paychex Valuation

Is 1PAYX 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 1PAYX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

€122.2
Fair Value
19.4% undervalued intrinsic discount
14
Number of Analysts

Below Fair Value: 1PAYX (€98.51) is trading below our estimate of fair value (€122.2)

Significantly Below Fair Value: 1PAYX 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 1PAYX?

Key metric: As 1PAYX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1PAYX. This is calculated by dividing 1PAYX's market cap by their current earnings.
What is 1PAYX's PE Ratio?
PE Ratio25x
EarningsUS$1.61b
Market CapUS$40.33b

Price to Earnings Ratio vs Peers

How does 1PAYX's PE Ratio compare to its peers?

The above table shows the PE ratio for 1PAYX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.3x
6098 Recruit Holdings
26.4x9.86%JP¥11.5t
ADP Automatic Data Processing
25.3x6.73%US$105.8b
PAYC Paycom Software
19.9x8.95%US$9.1b
TNXT Tinexta
57.7x44.06%€682.4m
1PAYX Paychex
25x10.26%€40.3b

Price-To-Earnings vs Peers: 1PAYX is good value based on its Price-To-Earnings Ratio (25x) compared to the peer average (32.4x).

Price to Earnings Ratio vs Industry

How does 1PAYX's PE Ratio compare vs other companies in the European Professional Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1PAYX 25.0xIndustry Avg. 19.1xNo. of Companies14PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1PAYX is expensive based on its Price-To-Earnings Ratio (25x) compared to the European Professional Services industry average (19.1x).

Price to Earnings Ratio vs Fair Ratio

What is 1PAYX'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.

1PAYX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25x
Fair PE Ratio35.1x

Price-To-Earnings vs Fair Ratio: 1PAYX is good value based on its Price-To-Earnings Ratio (25x) compared to the estimated Fair Price-To-Earnings Ratio (35.1x).

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 1PAYX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€98.51
€112.24
+13.93%
7.31%€127.15€97.94n/a14
Dec ’26€93.20
€114.81
+23.19%
7.40%€129.21€98.20n/a14
Nov ’26€102.48
€116.86
+14.04%
5.83%€130.13€105.84n/a14
Oct ’26€105.06
€115.76
+10.18%
5.91%€127.83€103.97n/a12
Sep ’26€118.68
€126.96
+6.97%
6.07%€137.87€105.13n/a12
Aug ’26€126.40
€127.25
+0.67%
6.81%€140.48€103.87n/a13
Jul ’26€123.44
€124.25
+0.65%
7.77%€140.96€104.22n/a15
Jun ’26€138.36
€129.07
-6.71%
6.69%€139.40€107.64n/a15
May ’26€127.88
€128.45
+0.44%
6.33%€140.00€115.19n/a15
Apr ’26n/a
€133.96
0%
6.31%€145.96€120.09n/a15
Mar ’26n/a
€135.17
0%
5.52%€147.17€116.18n/a15
Feb ’26n/a
€135.46
0%
5.38%€145.68€116.54n/a15
Jan ’26n/a
€132.30
0%
6.80%€143.87€110.30n/a16
Dec ’25n/a
€126.65
0%
7.10%€141.57€108.54€93.2016
Nov ’25n/a
€121.24
0%
6.74%€134.90€104.82€102.4816
Oct ’25n/a
€116.02
0%
7.27%€133.70€103.89€105.0616
Sep ’25n/a
€108.96
0%
4.67%€116.84€98.87€118.6816
Aug ’25n/a
€112.86
0%
4.67%€120.98€102.37€126.4017
Jul ’25n/a
€113.16
0%
4.66%€121.36€102.69€123.4417
Jun ’25n/a
€112.67
0%
4.44%€121.19€103.47€138.3617
May ’25n/a
€113.19
0%
4.33%€121.84€104.03€127.8818
Apr ’25n/a
€110.85
0%
4.69%€118.87€98.76n/a18
Mar ’25n/a
€112.34
0%
4.70%€120.42€100.04n/a18
Feb ’25n/a
€110.45
0%
5.05%€118.56€95.76n/a18
Jan ’25n/a
€109.75
0%
5.16%€118.04€95.34n/a17
Dec ’24n/a
€112.95
0%
6.65%€125.29€99.11n/a17
€114.85
Fair Value
14.2% undervalued intrinsic discount
14
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/12/08 23:05
End of Day Share Price 2025/12/08 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