Paychex Valuation
| PAYX Stock | USD 145.71 0.48 0.33% |
At this time, the company appears to be overvalued. Paychex holds a recent Real Value of $135.98 per share. The prevailing price of the company is $145.71. Our model determines the value of Paychex from analyzing the company fundamentals such as Return On Equity of 0.46, operating margin of 0.41 %, and Shares Outstanding of 359.9 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Paychex's valuation include:
Price Book 13.5775 | Enterprise Value 51.6 B | Enterprise Value Ebitda 21.1862 | Price Sales 9.9069 | Forward PE 28.9855 |
Overvalued
Today
Please note that Paychex's price fluctuation is very steady at this time. Calculation of the real value of Paychex is based on 3 months time horizon. Increasing Paychex's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Paychex is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Paychex Stock. However, Paychex's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 145.71 | Real 135.98 | Target 119.92 | Hype 145.39 | Naive 144.62 |
The intrinsic value of Paychex's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Paychex's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Paychex helps investors to forecast how Paychex stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Paychex more accurately as focusing exclusively on Paychex's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Paychex's intrinsic value based on its ongoing forecasts of Paychex's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Paychex's closest peers.
Paychex Cash |
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Paychex Valuation Trend
Analysing the historical paterns of Paychex's enterprise value and its market capitalization is a good way to estimate and gauge the value of Paychex over time and is usually enough for investors to make rational market timing decisions.
Paychex Revenue by Product
Paychex Total Value Analysis
Paychex is at this time anticipated to have valuation of 51.65 B with market capitalization of 52.61 B, debt of 885.5 M, and cash on hands of 1.23 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Paychex fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
51.65 B | 52.61 B | 885.5 M | 1.23 B |
Paychex Investor Information
About 80.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 7th of November 2024. Paychex had 3:2 split on the 23rd of May 2000. Based on the key measurements obtained from Paychex's financial statements, Paychex may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.24 | 0.4119 |
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| Total Cash From Operating Activities | 2 B | 1.9 B |
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| Operating Income | 2.3 B | 2.2 B |
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Paychex Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Paychex has an asset utilization ratio of 50.84 percent. This suggests that the Company is making $0.51 for each dollar of assets. An increasing asset utilization means that Paychex is more efficient with each dollar of assets it utilizes for everyday operations.Paychex Ownership Allocation
Paychex owns a total of 359.9 Million outstanding shares. The majority of Paychex outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Paychex to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Paychex. Please pay attention to any change in the institutional holdings of Paychex as this could imply that something significant has changed or is about to change at the company. On June 14, 2024, Senator Tommy Tuberville of US Senate acquired under $15k worth of Paychex's common stock.Paychex Profitability Analysis
The company reported the previous year's revenue of 5.28 B. Net Income was 1.69 B with profit before overhead, payroll, taxes, and interest of 3.26 B.Paychex Past Distributions to stockholders
About Paychex Valuation
Our relative valuation model uses a comparative analysis of Paychex. We calculate exposure to Paychex's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Paychex's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.8 B | 4 B | |
| Pretax Profit Margin | 0.42 | 0.24 | |
| Operating Profit Margin | 0.41 | 0.24 | |
| Net Profit Margin | 0.32 | 0.17 | |
| Gross Profit Margin | 0.72 | 0.55 |
Paychex Quarterly Retained Earnings |
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A single share of Paychex represents a small ownership stake in the entity. As a stockholder of Paychex, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Paychex Dividends Analysis For Valuation
At this time, Paychex's Dividends Paid is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to rise to 1.72 in 2024, whereas Dividend Yield is likely to drop 0.02 in 2024. . At this time, Paychex's Retained Earnings are fairly stable compared to the past year. Price Earnings Ratio is likely to rise to 40.47 in 2024, whereas Retained Earnings Total Equity is likely to drop slightly above 1.3 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.3 B | 1.4 B | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.78 | 0.48 | |
| Dividend Paid And Capex Coverage Ratio | 1.29 | 1.72 |
There are various types of dividends Paychex can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Paychex shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Paychex directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Paychex pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Paychex by the value of the dividends paid out.
Paychex Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 362.1 M | |
| Quarterly Earnings Growth Y O Y | 0.017 | |
| Forward Price Earnings | 28.9855 |
Paychex Current Valuation Indicators
Valuation refers to the process of determining the present value of Paychex and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Paychex we look at many different elements of the entity such as Paychex's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Paychex, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Paychex's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Paychex's worth.Additional Tools for Paychex Stock Analysis
When running Paychex's price analysis, check to measure Paychex's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Paychex is operating at the current time. Most of Paychex's value examination focuses on studying past and present price action to predict the probability of Paychex's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Paychex's price. Additionally, you may evaluate how the addition of Paychex to your portfolios can decrease your overall portfolio volatility.