Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Paychex's Enterprise Value is $38,011 Mil.
Paychex's EBIT for the trailing twelve months (TTM) ended in Feb. 2023 was $2,010 Mil. Therefore, Paychex's EV-to-EBIT ratio for today is 18.91.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Paychex's Enterprise Value is $38,011 Mil.
Paychex's EBITDA for the trailing twelve months (TTM) ended in Feb. 2023 was $2,191 Mil. Therefore, Paychex's EV-to-EBITDA ratio for today is 17.35.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Paychex's Enterprise Value is $38,011 Mil.
Paychex's Revenue for the trailing twelve months (TTM) ended in Feb. 2023 was $4,922 Mil. Therefore, Paychex's EV-to-Revenue ratio for today is 7.72.
Paychex Enterprise Value Historical Data
The historical data trend for Paychex's Enterprise Value 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
Enterprise Value
23,119.02
30,921.15
25,900.46
36,255.37
44,223.72
Paychex Quarterly Data
May18
Aug18
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
Enterprise Value
42,514.78
44,223.72
44,100.96
44,321.42
39,114.39
Competitive Comparison
For the Staffing & Employment Services subindustry, Paychex's Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value Distribution
For the Business Services industry and Industrials sector, Paychex's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Paychex's Enterprise Value falls in comparison to its industry or sector. The grey bar indicates the Enterprise Value's extreme value range as defined by GuruFocus.
Paychex Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Paychex's Enterprise Value for the fiscal year that ended in May. 2022 is calculated as
* 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 (NAS:PAYX) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Paychex's current Enterprise Value is $38,011 Mil.
Paychex's EBIT for the trailing twelve months (TTM) ended in Feb. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,010 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Paychex's current Enterprise Value is $38,011 Mil.
Paychex's EBITDA for the trailing twelve months (TTM) ended in Feb. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,191 Mil.
Paychex's current Enterprise Value is $38,011 Mil.
Paychex's Revenue for the trailing twelve months (TTM) ended in Feb. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,922 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 Enterprise Value Related Terms
Thank you for viewing the detailed overview of Paychex's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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