Paychex Inc (PAYX) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Paychex is a cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing s...
Paychex Inc (PAYX) currently trades at a P/E ratio of 22.00 (historical range: 18.85–38.97, median: 28.47), placing it at the 8th percentile — cheap relative to its history, P/S ratio of 6.02 (range: 4.87–11.51, 9th percentile — cheap relative to its history), EV/EBITDA of 16.44 (range: 14.41–29.33, 7th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Paychex Inc's P/E ratio has contracted by 10% over the observed period (from an average of 30.3 to 27.2).
Paychex Inc trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 22.00 | 28.47 | 8th | cheap relative to its history |
| P/S Ratio | 6.02 | 8.77 | 9th | cheap relative to its history |
| EV/EBITDA | 16.44 | 21.74 | 7th | cheap relative to its history |
| FCF Yield | 5.07% | 3.61% | 89th | cheap relative to its history |
Paychex Inc (PAYX) Valuation & P/E History
Paychex Inc (PAYX) is a US-listed stock operating in the Technology sector, specifically the Services-Engineering, Accounting, Research, Management industry currently trading at $111.63 with a market capitalization of $39.7 billion. This page provides historical valuation analysis for PAYX based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 22.00 is below the historical median of 28.47, placing PAYX at the 8th percentile of its valuation range. The P/S ratio of 6.02 compares to a median of 8.77.
PAYX Valuation Metrics & Historical Range
The valuation table above shows Paychex Inc's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether PAYX is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests PAYX is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Paychex Inc.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is PAYX Overvalued or Undervalued?
Paychex Inc trades well below its historical valuation range across most metrics. The overall valuation percentile of 8 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive PAYX is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full PAYX analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.PAYX trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.