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PaychexFRA:PCX +2.37%85 EV-to-EBIT is 17.47 as of Jul. 26, 2026, which is 13% below its 10-year median of 20.13. GuruFocus rates FRA:PCX with a GF Score™ of 85/100 and a GF Value™ of €136.11 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,770 Software companies, Paychex ranks worse than 57.74% on this metric.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Paychex's Enterprise Value is €38,564 Mil.
Paychex's EBIT for the trailing twelve months (TTM) ended in May. 2026 was €2,208 Mil. Therefore, Paychex's EV-to-EBIT for today is 17.47.
The historical rank and industry rank for Paychex's EV-to-EBIT or its related term are showing as below:
FRA:PCX'
s EV-to-EBIT Range Over the Past 10 Years
Min: 12.62 Med: 20.13 Max: 29.14
Current: 17
During the past 13 years, the highest EV-to-EBIT of Paychex was 29.14. The lowest was 12.62. And the median was 20.13.
FRA:PCX's EV-to-EBIT is ranked worse than 57.74% of 1770
companies
in the Software industry
Industry Median: 13.945
vs FRA:PCX: 17.00
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Paychex's Enterprise Value for the quarter that ended in May. 2026 was €31,917 Mil.
Paychex's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,208 Mil.
* 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 EV-to-EBIT Related Terms
Paychex EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Paychex's EV-to-EBIT 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.
For the Software - Application subindustry, Paychex's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Paychex's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Paychex's EV-to-EBIT falls into.
Paychex's current Enterprise Value is €38,564 Mil.
Paychex's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,208 Mil.
* 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 (FRA:PCX) has a EV-to-EBIT of 17.47 as of Jul. 26, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Paychex and its competitors. This is 13% below median its historical median of 20.13. Over the past decade, Paychex's EV-to-EBIT has ranged from 12.62 to 29.14. According to the industry distribution chart, Paychex ranks #1022 out of 1770 companies in the Software industry, placing it in the top 57.7%.
Is Paychex's EV-to-EBIT too high?
Paychex's current EV-to-EBIT of 17.47 is 13% below median its 10-year median of 20.13. Over the past 10 years, this metric has ranged from a low of 12.62 to a high of 29.14. The Software industry median EV-to-EBIT is 13.95. Paychex's value of 17.47 is 25.3% above this industry median. Based on the distribution chart, Paychex ranks #1022 out of 1770 companies in the Software industry, which is below the industry midpoint. Overall, Paychex has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's EV-to-EBIT compare to ROP and WDAY?
According to the Software industry distribution chart, Paychex ranks #1022 out of 1770 companies for EV-to-EBIT. This places Paychex in the lower half of its industry. The industry median EV-to-EBIT is 13.95. Paychex's value of 17.47 is 25.3% above this benchmark. Historically, Paychex's own EV-to-EBIT has ranged from 12.62 to 29.14 over the past decade. While the company's 10-year median is 20.13 vs. the industry median of 13.95, Paychex has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 13.95, based on 1,770 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current EV-to-EBIT of 17.47 is 25.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Paychex and its competitors. For the Software industry, the median EV-to-EBIT is 13.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current EV-to-EBIT is 17.47, which is 13% below median its own 10-year median of 20.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paychex stock overvalued right now?
Based on GuruFocus' analysis, Paychex (FRA:PCX) is currently considered Modestly Undervalued. The stock's GF Value™ is €136.11, compared to a current price of €98.51 — trading 27.6% below its estimated fair value. The current EV-to-EBIT is 17.47, which is 13% below median its 10-year median of 20.13 and 25.3% above the Software industry median of 13.95. Paychex's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Paychex (FRA:PCX), the current EV-to-EBIT is 17.47 as of Jul. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paychex (FRA:PCX) Overvalued in 2026?
Based on GuruFocus' analysis, Paychex stock appears to be undervalued.
The current stock price of €98.51 is trading 27.6% below its estimated GF Value™ of €136.11.
GuruFocus considers Paychex to be Modestly Undervalued.
Key valuation signals for FRA:PCX:
EV-to-EBIT: 17.47 (13% below median its 10-year median of 20.13)
GF Value™: €136.11 vs. price of €98.51 (27.6% below fair value)
Industry Position: 25.3% above the Software median (#1022 of 1770)
No single metric tells the full story. See the FRA:PCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paychex is a cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including professional employer organization, or PEO, offerings, enabling clients to reduce HR overhead. Paychex primarily targets small and midsize businesses, although its acquisition of Paycor in 2025 signals the firm's aspirations to expand into the midmarket segment, serving firms with more than 100 employees. As of fiscal 2025, Paychex has approximately 800,000 clients and manages payroll for one in 11 workers in the United States.
85GF Score
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