PAYX Paychex
Intrinsic value$59.31
Price (at call)$127.34
Margin of safety
-53.4%
vs market (rating basis)
-1.4%
Model unavailable; showing baseline valuation.
⚠ LLM error: empty response; using baseline
The story
Value drivers
| Revenue growth (Y1) | 9.2% |
| Terminal growth | 3.5% |
| Forecast horizon | 10y |
| Target operating margin | 27.3% |
| Years to target margin | 5 |
| Sales-to-capital | 0.79 |
| Beta | 1.05 |
| Failure probability | 0.0% |
| Cost of capital (WACC) | 9.1% |
| Terminal WACC | 8.8% |
Valuation bridge
| PV of explicit FCFF | 9.03B |
| PV of terminal value | 15.54B |
| Equity value | 21.10B |
| ÷ shares → per share | $59.31 |
News
neutral -0.10 · 8 articles
- HR Software Stocks Q2 Recap: Benchmarking Paychex (NASDAQ:PAYX)
- Here's Why You Should Hold PAYX Stock in Your Portfolio Now
- Are Wall Street Analysts Bullish on Paychex Stock?
- Adding Paychex CEO to Board Might Change The Case For Investing In ManpowerGroup (MAN)
- Turn The ADP Shares You Own Into A 9.1% Income Stream
- 3 Reasons to Sell PAYX and 1 Stock to Buy Instead
- Microsoft (MSFT) Deepens AI Partnerships As $500 Billion Chip Funding Wave Builds
- 3 Profitable Stocks We Think Twice About
Projected free cash flow to the firm
| Yr | Revenue | Growth | Margin | NOPAT | Reinvest | FCFF | PV |
|---|---|---|---|---|---|---|---|
| 1 | 7.11B | 9.2% | 37.2% | 2.01B | 759.04M | 1.25B | 1.15B |
| 2 | 7.71B | 8.5% | 34.7% | 2.04B | 771.67M | 1.27B | 1.07B |
| 3 | 8.32B | 7.9% | 32.2% | 2.04B | 775.75M | 1.27B | 977.73M |
| 4 | 8.93B | 7.3% | 29.8% | 2.02B | 770.43M | 1.25B | 886.98M |
| 5 | 9.52B | 6.6% | 27.3% | 1.98B | 755.02M | 1.23B | 794.75M |
| 6 | 10.09B | 6.0% | 27.3% | 2.10B | 728.99M | 1.37B | 815.07M |
| 7 | 10.64B | 5.4% | 27.3% | 2.21B | 692.08M | 1.52B | 829.20M |
| 8 | 11.14B | 4.8% | 27.3% | 2.32B | 644.24M | 1.67B | 836.91M |
| 9 | 11.60B | 4.1% | 27.3% | 2.41B | 585.74M | 1.83B | 838.14M |
| 10 | 12.01B | 3.5% | 27.3% | 2.50B | 517.10M | 1.98B | 832.94M |