Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
PaychexPAYX -0.27%85 EV-to-FCF is 19.02 as of Jul. 17, 2026, which is 24% below its 10-year median of 25.17. GuruFocus rates PAYX with a GF Score™ of 85/100 and a GF Value™ of $156.72 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,595 Software companies, Paychex ranks worse than 60.44% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Paychex's Enterprise Value is $44,161 Mil.
Paychex's Free Cash Flow for the trailing twelve months (TTM) ended in May. 2026 was $2,322 Mil. Therefore, Paychex's EV-to-FCF for today is 19.02.
The historical rank and industry rank for Paychex's EV-to-FCF or its related term are showing as below:
PAYX'
s EV-to-FCF Range Over the Past 10 Years
Min: 16.07 Med: 25.17 Max: 40.03
Current: 19.02
During the past 13 years, the highest EV-to-FCF of Paychex was 40.03. The lowest was 16.07. And the median was 25.17.
PAYX's EV-to-FCF is ranked worse than 60.44% of 1595
companies
in the Software industry
Industry Median: 14.76
vs PAYX: 19.02
EV-to-FCF 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-FCF 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 $114.39.
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 $4.890.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Paychex EV-to-FCF Related Terms
Paychex EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Paychex's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, Paychex's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Paychex's EV-to-FCF falls into.
Paychex's current Enterprise Value is $44,161 Mil.
Paychex's Free Cash Flow 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 $2,322 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 (PAYX) has a EV-to-FCF of 19.02 as of Jul. 17, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Paychex and its competitors. This is 24% below median its historical median of 25.17. Over the past decade, Paychex's EV-to-FCF has ranged from 16.07 to 40.03. According to the industry distribution chart, Paychex ranks #964 out of 1595 companies in the Software industry, placing it in the top 60.4%.
Is Paychex's EV-to-FCF too high?
Paychex's current EV-to-FCF of 19.02 is 24% below median its 10-year median of 25.17. Over the past 10 years, this metric has ranged from a low of 16.07 to a high of 40.03. The Software industry median EV-to-FCF is 14.76. Paychex's value of 19.02 is 28.9% above this industry median. Based on the distribution chart, Paychex ranks #964 out of 1595 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-FCF compare to ROP and WDAY?
According to the Software industry distribution chart, Paychex ranks #964 out of 1595 companies for EV-to-FCF. This places Paychex in the lower half of its industry. The industry median EV-to-FCF is 14.76. Paychex's value of 19.02 is 28.9% above this benchmark. Historically, Paychex's own EV-to-FCF has ranged from 16.07 to 40.03 over the past decade. While the company's 10-year median is 25.17 vs. the industry median of 14.76, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.76, based on 1,595 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current EV-to-FCF of 19.02 is 28.9% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Paychex and its competitors. For the Software industry, the median EV-to-FCF is 14.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current EV-to-FCF is 19.02, which is 24% below median its own 10-year median of 25.17. 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 (PAYX) is currently considered Modestly Undervalued. The stock's GF Value™ is $156.72, compared to a current price of $114.39 — trading 27% below its estimated fair value. The current EV-to-FCF is 19.02, which is 24% below median its 10-year median of 25.17 and 28.9% above the Software industry median of 14.76. 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Paychex (PAYX), the current EV-to-FCF is 19.02 as of Jul. 17, 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 (PAYX) Overvalued in 2026?
Based on GuruFocus' analysis, Paychex stock appears to be undervalued.
The current stock price of $114.39 is trading 27% below its estimated GF Value™ of $156.72.
GuruFocus considers Paychex to be Modestly Undervalued.
Key valuation signals for PAYX:
EV-to-FCF: 19.02 (24% below median its 10-year median of 25.17)
GF Value™: $156.72 vs. price of $114.39 (27% below fair value)
Industry Position: 28.9% above the Software median (#964 of 1595)
No single metric tells the full story. See the PAYX 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
Get the complete analysis for PAYX
EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PAYX has been successfully added to your 
