Paychex Inc. (0KGE) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Paychex Inc. $117, price $98.94, upside +18.1%, quality 78 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Paychex Inc.
0KGE · LSEUndervalued, solidQuality growthFair Value upside is positive and quality is strong.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $75.44 – $153.43 · fair‑value band $84.73 – $209.39 · the $98.94 price screens below the $116.83 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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Company profile
Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for payroll, employee benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India.
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Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for payroll, employee benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services. The company provides retirement solutions, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services; HCM solutions from recruiting and hiring to retirement; and talent management and talent acquisition services. In addition, it offers payroll solutions, including calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients' payroll obligations. Further, the company provides workforce management solutions; benefits administration solutions; digital marketplace for earned wages, financial wellness solutions, and voluntary lifestyle benefits; HR support to non-payroll clients through HR Partner Plus solution; and insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. Additionally, it offers payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and both virtual and on-site availability of a professionally trained HR representative, and other solutions to businesses. It markets and sells its services primarily through its direct sales force. The company was founded in 1971 and is headquartered in Rochester, New York.
Stock analysis
Paychex Inc. (0KGE) currently trades at $98.94, while our model-based Fair Value estimate is $116.83, implying the stock looks roughly 15.3% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $120.63 per share, and 11 of the 24 models we run sit above the $98.94 price.
Bear case: the Economic Profit group reads lowest at $35.91, and 13 of the 24 models stay below the price. Evidence for this calculation is medium.
Scenario range: $84.73 (bear) to $209.39 (bull), the price of $98.94 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 78/100 (high quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Paychex Inc. reported revenue of $6.5B in FY2026 versus $4.6B in FY2022, a compound +9.0%/yr. Reported net income was $1.8B in FY2026, compounding +6.0%/yr from FY2022.
Key figures
Market cap $35.6B · P/E ratio 0.3 · P/S ratio 0.08 · EPS (TTM) $3.74 · Net margin 27.0% · Return on equity 40.3% · Return on assets (EBIT) 17.6% · Operating margin 38.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 58 out of 100 (medium confidence).
What moves the price
The share trades about 22% below its 52-week high and 17% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −40% fair-value upside, at 18%, 0KGE screens cheaper than that median.
Fair Value models
All 24 models by family
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Set up alert →Quality Score breakdown
Of which business quality 73 · Market factors (momentum, volatility) 45
Revenue & earnings trend
Growth Forecast
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Compare Paychex Inc. with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Human Resource & Employment Services” was too small, so the broader sector is used.)Industrials · 5305 stocks
Valuation Multiplesvs Industrials median · lower = cheaper
Strength profile in five axes (Snowflake)
Context: sector, industry, market
- Is the Industrials sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: Industrials
- Undervalued stocks: UK Stocks
- Valuation of the UK market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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Key figures of Paychex Inc.
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