GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Paychex Inc (NAS:PAYX) » Definitions » E10

Paychex (Paychex) E10 : $3.60 (As of May. 2024)


View and export this data going back to 1983. Start your Free Trial

What is Paychex E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E 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 May. 2024 was $1.050. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.60 for the trailing ten years ended in May. 2024.

During the past 12 months, Paychex's average E10 Growth Rate was 10.80% per year. During the past 3 years, the average E10 Growth Rate was 13.10% per year. During the past 5 years, the average E10 Growth Rate was 12.10% per year. During the past 10 years, the average E10 Growth Rate was 8.90% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Paychex was 49.40% per year. The lowest was 5.10% per year. And the median was 13.45% per year.

As of today (2024-07-15), Paychex's current stock price is $118.30. Paychex's E10 for the quarter that ended in May. 2024 was $3.60. Paychex's Shiller PE Ratio of today is 32.86.

During the past 13 years, the highest Shiller PE Ratio of Paychex was 52.40. The lowest was 23.30. And the median was 34.85.


Paychex E10 Historical Data

The historical data trend for Paychex's E10 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 E10 Chart

Paychex Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.24 2.49 2.90 3.25 3.60

Paychex Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
E10 Get a 7-Day Free Trial 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 3.25 3.34 3.39 3.51 3.60

Competitive Comparison of Paychex's E10

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's Shiller PE Ratio Distribution in the Business Services Industry

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 into.



Paychex E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get 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.

For example, Paychex's adjusted earnings per share data for the three months ended in May. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of May. 2024 (Change)*Current CPI (May. 2024)
=1.05/132.2892*132.2892
=1.050

Current CPI (May. 2024) = 132.2892.

Paychex Quarterly Data

per share eps CPI Adj_EPS
201408 0.470 100.352 0.620
201411 0.470 99.635 0.624
201502 0.460 99.032 0.614
201505 0.440 100.333 0.580
201508 0.580 100.548 0.763
201511 0.520 100.135 0.687
201602 0.500 100.040 0.661
201605 0.490 101.355 0.640
201608 0.600 101.617 0.781
201611 0.560 101.829 0.728
201702 0.560 102.779 0.721
201705 0.540 103.256 0.692
201708 0.580 103.587 0.741
201711 0.550 104.072 0.699
201802 1.010 105.052 1.272
201805 0.630 106.148 0.785
201808 0.670 106.383 0.833
201811 0.650 106.338 0.809
201902 0.900 106.649 1.116
201905 0.640 108.048 0.784
201908 0.730 108.245 0.892
201911 0.720 108.519 0.878
202002 0.980 109.139 1.188
202005 0.610 108.175 0.746
202008 0.590 109.662 0.712
202011 0.750 109.793 0.904
202102 0.970 110.968 1.156
202105 0.730 113.576 0.850
202108 0.920 115.421 1.054
202111 0.910 117.269 1.027
202202 1.190 119.703 1.315
202205 0.820 123.323 0.880
202208 1.050 124.958 1.112
202211 0.990 125.607 1.043
202302 1.290 126.928 1.344
202305 0.970 128.314 1.000
202308 1.160 129.538 1.185
202311 1.080 129.548 1.103
202402 1.380 130.930 1.394
202405 1.050 132.289 1.050

Add all the adjusted EPS together and divide 10 will get our e10.


Paychex  (NAS:PAYX) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, 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 P/E is also called PE10.

The Shiller P/E 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 P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=118.30/3.6
=32.86

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Paychex was 52.40. The lowest was 23.30. And the median was 34.85.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Paychex E10 Related Terms

Thank you for viewing the detailed overview of Paychex's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Paychex (Paychex) Business Description

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 740,000 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
Flaschen David J S director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Christopher C Simmons officer: VP, Controller & Treasurer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Michael E Gioja officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Efrain Rivera officer: Sr. Vice President, CFO 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Martin Mucci officer: Sr. Vice President 911 PANORAMA TRAIL S, ROCHESTER NY 14625
Joseph M Tucci director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Joseph M Velli director
Elizabeth Roaldsen officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Karen E. Saunders-mcclendon officer: VP, Chief Human Resources Offi 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Theresa M. Payton director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
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
Robert L. Schrader officer: VP/Controller 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Stephanie L Schaeffer officer: Chief Legal Officer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Joseph Doody director CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701

Paychex (Paychex) Headlines

From GuruFocus

Q3 2019 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2020 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2022 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Paychex Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024

Q2 2022 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Paychex Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024

Q4 2019 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024