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PaychexFRA:PCX +0.25%88 EV-to-OCF is 18.33 as of Aug. 08, 2026, which is 20% below its 10-year median of 22.80. GuruFocus rates FRA:PCX with a GF Score™ of 88/100 and a GF Value™ of €134.09 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,878 Software companies, Paychex ranks worse than 74.95% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Paychex's Enterprise Value is €40,074 Mil.
Paychex's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 was €2,187 Mil. Therefore, Paychex's EV-to-OCF for today is 18.33.
The historical rank and industry rank for Paychex's EV-to-OCF or its related term are showing as below:
FRA:PCX'
s EV-to-OCF Range Over the Past 10 Years
Min: 14.49 Med: 22.8 Max: 36.32
Current: 18.06
During the past 13 years, the highest EV-to-OCF of Paychex was 36.32. The lowest was 14.49. And the median was 22.80.
FRA:PCX's EV-to-OCF is ranked worse than 74.95% of 2878
companies
in the Software industry
Industry Median: 6.705
vs FRA:PCX: 18.06
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Paychex's share price for today is €102.34.
Paychex's Earnings per Share (Diluted) 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 €4.184.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Paychex EV-to-OCF Related Terms
Paychex EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Paychex's EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Software Industry
For the Software industry and Technology sector, Paychex's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Paychex's EV-to-OCF falls into.
Paychex's current Enterprise Value is €40,074 Mil.
Paychex's Cash Flow from Operations 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 €2,187 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-OCF of 18.33 as of Aug. 08, 2026. This is 20% below median its historical median of 22.80. Over the past decade, Paychex's EV-to-OCF has ranged from 14.49 to 36.32. According to the industry distribution chart, Paychex ranks #2157 out of 2878 companies in the Software industry, placing it in the top 74.9%.
Is Paychex's EV-to-OCF too high?
Paychex's current EV-to-OCF of 18.33 is 20% below median its 10-year median of 22.80. Over the past 10 years, this metric has ranged from a low of 14.49 to a high of 36.32. The Software industry median EV-to-OCF is 6.71. Paychex's value of 18.33 is 173.4% above this industry median. Based on the distribution chart, Paychex ranks #2157 out of 2878 companies in the Software industry, which is below the industry midpoint. Overall, Paychex has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's EV-to-OCF compare to ADSK and ROP?
According to the Software industry distribution chart, Paychex ranks #2157 out of 2878 companies for EV-to-OCF. This places Paychex in the lower half of its industry. The industry median EV-to-OCF is 6.71. Paychex's value of 18.33 is 173.4% above this benchmark. Historically, Paychex's own EV-to-OCF has ranged from 14.49 to 36.32 over the past decade. While the company's 10-year median is 22.80 vs. the industry median of 6.71, 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-OCF for a Software company?
The median EV-to-OCF among Software companies is 6.71, based on 2,878 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current EV-to-OCF of 18.33 is 173.4% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current EV-to-OCF is 18.33, which is 20% below median its own 10-year median of 22.80. 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 €134.09, compared to a current price of €102.34 — trading 23.7% below its estimated fair value. The current EV-to-OCF is 18.33, which is 20% below median its 10-year median of 22.80 and 173.4% above the Software industry median of 6.71. Paychex's overall GF Score™ is 88/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Paychex (FRA:PCX), the current EV-to-OCF is 18.33 as of Aug. 08, 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 €102.34 is trading 23.7% below its estimated GF Value™ of €134.09.
GuruFocus considers Paychex to be Modestly Undervalued.
Key valuation signals for FRA:PCX:
EV-to-OCF: 18.33 (20% below median its 10-year median of 22.80)
GF Value™: €134.09 vs. price of €102.34 (23.7% below fair value)
Industry Position: 173.4% above the Software median (#2157 of 2878)
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.
88GF Score
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