Paychex (PAYX) fundamentals: P/E, valuation, undervalued?

Paychex · Industrials · ref. ETF XLI · price $126.48
Logo PaychexSee the full Paychex (PAYX) profile
In short — Paychex trades at 25.5× earnings (P/E), 19.8× forward, with a net margin of 26.6 % and revenue growth of +13 %. Read: Cheap for the growth (P/E 20 for ~43% growth (PEG 0.5)).

Is Paychex stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.

📈 1-year price
$126.48-8.8% over range
Aug 28, 25low $85.57 · high $139.46Aug 27, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
SellBuy
Hold
8% recommend buying · 12 analysts
Valuation : Cheap for the growth — P/E 20 for ~43% growth (PEG 0.5)

Valuation

25.5
P/E (price/earnings)
19.8
Forward P/E
0.59
PEG
12.0
Price/book (P/B)
$45.0B
Market cap
4.96
EPS

Profitability & growth

26.6 %
Net margin
+13 %
Revenue growth
+43 %
Earnings growth
$4.6B
Total debt

Paychex income statement

Fiscal yearRevenueNet incomeMargin
2023$5.0B$1.6B31.1 %
2024$5.3B$1.7B32.0 %
2025$5.6B$1.7B29.7 %
2026$6.5B$1.8B27.0 %
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.

Frequently asked questions

What is Paychex's P/E and is the stock undervalued? What's a good P/E?

Paychex's P/E is 25.5 (forward 19.8). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Cheap for the growth".

Is Paychex profitable?

Paychex has a net margin of 26.6 % (EPS 4.96). The company is profitable.

Is PAYX stock expensive?

Our read: "Cheap for the growth" — P/E 20 for ~43% growth (PEG 0.5). Cross-check with growth and sector.

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