PAYXPaychex

Industrials

$103.97-18% 1Y

$103.97

$84.4852 weeks$127.36

Is the price fair?

Excellent

Undemanding: modest expectations priced in, cheap against its own history, and cheap vs its sector.

3 good

What the price assumes~+4% a year

Priced for ~4% a year FCF growth. The price demands less than its three-year revenue growth of 9% a year, expectations look modest.

Vs its own P/E rangecheaper than 76% of its own historyderived

Cheap vs its own history: P/E 20.6 vs a 24.0 median over 41 quarters (−14% vs median).

Vs sector (EV/EBIT)15.0×

Sector median 23.3× across 246 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.

Unless marked, from derived, as of Aug 31, 2026.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

P/E (valuation)middle of the market

FCF yieldmiddle of the market

Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.

What PAYX's price assumes

Paychex trades at 20.6× earnings against 33.9× for the median Software - Application name, cheaper than its own group.

20.6

Trailing P/E · Software - Application median 33.9 · cheaper than the typical name in its group

Price / sales: 5.33
Price / sales · today's price, trailing year to Aug 31, 2026
Free cash flow yield: 5.7%
Free cash flow yield · Software - Application median 6.9%
Growth the price implies: +3.9%
Growth the price implies · The price pays for +3.9% free cash flow growth a year for a decade; the business has delivered +2.3% a year over the last three.

Details›

Price / booktoday's price, trailing year to Aug 31, 2026: 9.50
EV / EBITtoday's price, trailing year to Aug 31, 2026: 15.0
EV / salestoday's price, trailing year to Aug 31, 2026: 5.88
Industrials median P/E440 names: 26.5
Software - Application median P/E126 names: 33.9
Free cash flow, trailing twelve months: $2.02B
Market capitalisation: $35.2B
3-year revenue growth: +9.1%
3-year free cash flow growth: +2.3%

What the market has paid for these earnings: 41 quarters of its own multiple × $5.05 of trailing earnings per share
Method	Per share
Its own P/E history, lower quartile	$105.35
Its own P/E history, median	$121.32
Its own P/E history, upper quartile	$137.99
52-week range	$84.48 – $127.36
Today	$103.97

Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.

On our screens:Cheap stocks by free cash flow yield Quality compounders Quality at a reasonable price Stocks that buy back more than they dilute

Software, Application

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