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Paychex (NAS:PAYX) Shiller PE Ratio

: 35.57 (As of Today)
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As of today (2023-03-25), Paychex's current share price is $108.84. Paychex's E10 for the quarter that ended in Nov. 2022 was $3.06. Paychex's Shiller PE Ratio for today is 35.57.

The historical rank and industry rank for Paychex's Shiller PE Ratio or its related term are showing as below:

PAYX' s Shiller PE Ratio Range Over the Past 10 Years
Min: 21.37   Med: 33.28   Max: 51.51
Current: 35.57

During the past years, Paychex's highest Shiller PE Ratio was 51.51. The lowest was 21.37. And the median was 33.28.

PAYX's Shiller PE Ratio is ranked worse than
69.29% of 394 companies
in the Business Services industry
Industry Median: 22.30 vs PAYX: 35.57

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Paychex's adjusted earnings per share data for the three months ended in Nov. 2022 was $0.990. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.06 for the trailing ten years ended in Nov. 2022.

Shiller PE for Stocks: The True Measure of Stock Valuation


Paychex Shiller PE Ratio Historical Data

The historical data trend for Paychex's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Paychex Annual Data
Trend May13 May14 May15 May16 May17 May18 May19 May20 May21 May22
Shiller PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.79 41.08 32.31 40.67 42.63

Paychex Quarterly Data
Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 44.91 42.80 42.63 41.19 40.59

Competitive Comparison

For the Staffing & Employment Services subindustry, Paychex's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Paychex Shiller PE Ratio Distribution

For the Business Services industry and Industrials sector, Paychex's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Paychex's Shiller PE Ratio falls in comparison to its industry or sector. The grey bar indicates the Shiller PE Ratio's extreme value range as defined by GuruFocus.



Paychex Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Paychex's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=108.84/3.06
=35.57

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Paychex's E10 for the quarter that ended in Nov. 2022 is calculated as:

For example, Paychex's adjusted earnings per share data for the three months ended in Nov. 2022 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Nov. 2022 (Change)*Current CPI (Nov. 2022)
=0.99/125.6074*125.6074
=0.990

Current CPI (Nov. 2022) = 125.6074.

Paychex Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201302 0.400 97.953 0.513
201305 0.340 98.282 0.435
201308 0.440 98.675 0.560
201311 0.430 98.334 0.549
201402 0.440 99.057 0.558
201405 0.400 100.373 0.501
201408 0.470 100.352 0.588
201411 0.470 99.635 0.593
201502 0.460 99.032 0.583
201505 0.440 100.333 0.551
201508 0.580 100.548 0.725
201511 0.520 100.135 0.652
201602 0.500 100.040 0.628
201605 0.490 101.355 0.607
201608 0.600 101.617 0.742
201611 0.560 101.829 0.691
201702 0.560 102.779 0.684
201705 0.540 103.256 0.657
201708 0.580 103.587 0.703
201711 0.550 104.072 0.664
201802 1.010 105.052 1.208
201805 0.630 106.148 0.745
201808 0.670 106.383 0.791
201811 0.650 106.338 0.768
201902 0.900 106.649 1.060
201905 0.640 108.048 0.744
201908 0.730 108.245 0.847
201911 0.720 108.519 0.833
202002 0.980 109.139 1.128
202005 0.610 108.175 0.708
202008 0.590 109.662 0.676
202011 0.750 109.793 0.858
202102 0.970 110.968 1.098
202105 0.730 113.576 0.807
202108 0.920 115.421 1.001
202111 0.910 117.269 0.975
202202 1.190 119.703 1.249
202205 0.820 123.323 0.835
202208 1.050 124.958 1.055
202211 0.990 125.607 0.990

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Paychex  (NAS:PAYX) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Paychex Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Paychex's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Paychex (NAS:PAYX) Business Description

Paychex logo
Traded in Other Exchanges
Address
911 Panorama Trail South, Rochester, NY, USA, 14625-2396
Paychex is a leading provider of payroll, human capital management, and insurance solutions servicing small and midsize clients primarily in the United States. The company, established in 1979, services over 730,000 clients and pays over 1 in 12 U.S. private-sector workers. Alongside its traditional payroll services, Paychex offers HCM solutions such as benefits administration and time and attendance software, as well as human resources outsourcing and insurance agency services.
Executives
Kevin A Price director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Karen E. Saunders-mcclendon officer: VP, Chief Human Resources Offi 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Robert L. Schrader officer: VP/Controller 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Kara Wilson director C/O SUCCESSFACTORS, INC., 1500 FASHION ISLAND BLVD., SUITE 300, SAN MATEO CA 94404
Tom Bonadio director 1021 HOWARD AVE, SAN CARLOS CA 94070
John B Gibson officer: Sr. VP, Service CONVERGYS CORPORATION, 201 EAST FOURTH STREET, CINCINNATI OH 45202
Mark Anthony Bottini officer: Sr. VP of Sales 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Kevin N Hill officer: Vice President 50 WREN FIELD LN, PITTSFORD NY 114534
Michael E Gioja officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Rebecca F Bernson officer: Sr. Vice President, Sales 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Efrain Rivera officer: Sr. Vice President, CFO 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Laurie L. Zaucha officer: Vice President 400 WILLOWBROOK OFFICE PARK, FAIRPORT NY 14450
Joseph Doody director CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701
Delbert M Humenik officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Jennifer R. Vossler officer: VP/Controller 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625

Paychex (NAS:PAYX) Headlines