Paychex Inc (PAYX) fair value: what the stock is really worth
We calculate from audited financials what Paychex Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Paychex Inc
PAYX · USQuality WatchlistQuality growthA strong company, but the current price is close to Fair Value.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 18, 2026.
How to read this chart
60‑month range $84.48 – $153.47 · fair‑value band $85.80 – $195.35 · the $116.14 price screens below the $128.39 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 18, 2026.
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 (PAYX) currently trades at $116.14, while our model-based Fair Value estimate is $128.39, implying the stock looks roughly 9.5% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $110.86 per share, and 4 of the 26 models we run sit above the $116.14 price.
Bear case: the Economic Profit group reads lowest at $34.29, and 22 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: $85.80 (bear) to $195.35 (bull), the price of $116.14 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 77/100 (high quality), in the Technology 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 $41.8B · P/E ratio 25.6 · P/S ratio 6.93 · EPS (TTM) $4.53 · Dividend yield 4.5% · Net margin 27.0% · Return on equity 40.3% · Return on assets (EBIT) 17.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 62 out of 100 (medium confidence).
What moves the price
The share trades about 24% below its 52-week high and 38% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −16% fair-value upside, at 11%, PAYX screens cheaper than that median.
Fair Value models
All 26 models by family
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Set up alert →Quality Score breakdown
Of which business quality 73 · Market factors (momentum, volatility) 57
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 industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 702 stocks
Valuation Multiplesvs Software - Application 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: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Software - Application stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SAP SE SAP | €186.56 | €156.00 | −16% |
| Shopify Inc SHOP | C$178.41 | C$112.02 | −37% |
| Uber Technologies, Inc UBER | $71.43 | $102.51 | +44% |
| Salesforce, Inc CRM | $255.65 | $344.41 | +35% |
| ServiceNow, Inc NOW | $141.90 | $156.09 | +10% |
| Cadence Design Systems, Inc CDNS | $273.96 | $224.24 | −18% |
| Snowflake Inc SNOW | $322.98 | $74.65 | −77% |
| Datadog, Inc DDOG | $230.27 | $32.92 | −86% |
| Adobe Inc ADBE | $257.76 | $471.62 | +83% |
| Automatic Data Processing, Inc ADP | $276.53 | $177.51 | −36% |
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