PAYCHEX INC
$115.68
+0.50 (+0.43%) · delayed · Nov 13, 2026
Five-year price
52w $85.45 to $127.98
- Market cap
- $41.2B
- Enterprise value
- $44.6B
- P/E
- 23.7×
- 24.5× on 3y avg EPS
- EV / EBIT
- 17.8×
- FCF yield
- 5.6%
- ROIC
- 26.5%
- Debt / equity
- 1.22
- Piotroski F
- 6/9
Value scorecard · FY2026
Does it pass the value tests?
Quality
100
- ●ROIC > 12% (5y avg)5y avg ROIC 38.4%
- ●ROE > 15% (5y avg)5y avg ROE 44.3%
- ●Stable operating marginsMargin volatility 0.9% (σ, 5y)
- ●Earnings convert to cashFCF / net income 109% (5y avg)
- ●Growing revenueRevenue CAGR 5y 9.5%
- ●Shrinking share countDiluted shares -0.6% over 5y
Value
0
- ○P/E below 15P/E 23.7
- ○EV/EBIT below 12EV/EBIT 17.8
- ○FCF yield above 6%FCF yield 5.6%
- ○Price below Graham NumberGraham Number $33.98
- ○P/B below 3P/B 11.0
Safety
60
- ○Debt / equity below 0.5D/E 1.22
- ●Debt payable in < 4 yrs of earningsNet debt $3.5B
- ●Interest coverage > 8xCoverage 9.3x
- ○Current ratio > 1.5Current ratio 1.26
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
57
- ●Adequate size (revenue > $2B)Revenue $6.3B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.26
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 79%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 24.5
- ○P/E × P/B ≤ 22.5Product 270.6
Valuation lab
What do you have to believe?
At $115.68, the market is pricing in about 5.1% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $3.5B · 356M shares · 5y revenue CAGR 9.5%
Intrinsic value
$171.55
Price
$115.68
Margin of safety
33%
What the price implies
The market is paying for 5.1% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
62% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,102 | 3,314 | 3,692 | 3,954 | 3,998 | 4,554 | 4,907 | 5,132 | 5,410 | 6,301 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 1,254 | 1,292 | 1,371 | 1,461 | 1,461 | 1,840 | 2,033 | 2,174 | 2,208 | 2,511 |
| Operating margin | 40.4% | 39.0% | 37.1% | 36.9% | 36.5% | 40.4% | 41.4% | 42.4% | 40.8% | 39.8% |
| Pre-tax income | 1,259 | 1,300 | 1,368 | 1,437 | 1,434 | 1,825 | 2,048 | 2,218 | 2,176 | 2,311 |
| Income tax | 433 | 306 | 334 | 339 | 337 | 432 | 491 | 528 | 519 | 551 |
| Net income | 826 | 994 | 1,034 | 1,098 | 1,098 | 1,393 | 1,557 | 1,690 | 1,657 | 1,760 |
| EPS (diluted) | 2.28 | 2.75 | 2.86 | 3.04 | 3.03 | 3.84 | 4.30 | 4.67 | 4.58 | 4.89 |
| Diluted shares | 363 | 362 | 362 | 361 | 362 | 363 | 362 | 362 | 362 | 360 |
Who owns it