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

Paychex · Industrials · ref. ETF XLI · price $106.25
Logo PaychexSee the full Paychex (PAYX) profile
In short — Paychex trades at 21.1× earnings (P/E), 16.6× forward, with a net margin of 27.4 % and revenue growth of +6 %. Read: Fairly valued (P/E 17 in line with ~14% growth (PEG 1.2)).

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
$106.25-17.4% over range
Oct 14, 25low $85.57 · high $128.59Oct 13, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
SellBuy
Hold
8% recommend buying · 13 analysts
Valuation : Fairly valued — P/E 17 in line with ~14% growth (PEG 1.2)

Valuation

21.1
P/E (price/earnings)
16.6
Forward P/E
1.52
PEG
10.2
Price/book (P/B)
$37.8B
Market cap
5.04
EPS

Profitability & growth

27.4 %
Net margin
+6 %
Revenue growth
+14 %
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 21.1 (forward 16.6). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Fairly valued".

Is Paychex profitable?

Paychex has a net margin of 27.4 % (EPS 5.04). The company is profitable.

Is PAYX stock expensive?

Our read: "Fairly valued" — P/E 17 in line with ~14% growth (PEG 1.2). Cross-check with growth and sector.

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