Paychex (FRA:PCX) FCF Yield %: 6.75 (As of Jun. 26, 2026) — 70% Above Median


FRA:PCX Paychex Inc FRA:PCX
82 GF Score
Price €84.39
GF Value €136.39
Valuation Significantly Undervalued
! 4 Warning Signs
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What is Paychex FCF Yield %?

Paychex FRA:PCX -1.61% 82 FCF Yield % is 6.75 as of Jun. 26, 2026, which is 70% above its 10-year median of 3.96. GuruFocus rates FRA:PCX with a GF Score™ of 82/100 and a GF Value™ of €136.39 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,868 Software companies, Paychex ranks better than 74.51% on this metric.

FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.

As of today, Paychex's Trailing 12-Month Free Cash Flow is €1,985 Mil, and Market Cap is €30,293 Mil. Therefore, Paychex's FCF Yield % for today is 6.75%.

The historical rank and industry rank for Paychex's FCF Yield % or its related term are showing as below:

FRA:PCX' s FCF Yield % Range Over the Past 10 Years
Min: 2.49   Med: 3.96   Max: 6.79
Current: 6.75


During the past 13 years, the highest FCF Yield % of Paychex was 6.79%. The lowest was 2.49%. And the median was 3.96%.

FRA:PCX's FCF Yield % is ranked better than
74.51% of 2868 companies
in the Software industry
Industry Median: 0.885 vs FRA:PCX: 6.75

Paychex's FCF Margin % for the quarter that ended in May. 2026 was 32.08%.


Paychex FCF Yield % Explanation

Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.


Paychex FCF Yield % Related Terms


Paychex FCF Yield % Historical Data

* Premium members only.

The historical data trend for Paychex's FCF Yield % 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.

Paychex FCF Yield % Chart

Paychex Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
FCF Yield %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.35 4.03 4.03 3.06 6.87

Paychex Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
FCF Yield % 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 2.03 5.33 3.84 9.33 6.09

FRA:PCX vs WDAY, ROP, ZM: FCF Yield % Comparison

For the Software - Application subindustry, Paychex's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry

For the Software industry and Technology sector, Paychex's FCF Yield % distribution charts can be found below:

* The bar in red indicates where Paychex's FCF Yield % falls into.


FRA:PCX
82GF Score
Paychex Inc FRA:PCX
FCF Yield % is just one metric. See GF Score™, valuation, warning signs, and more.
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Paychex FCF Yield % Calculation

FCF Yield % is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.

Paychex's FCF Yield % for the fiscal year that ended in May. 2026 is calculated as

FCF Yield %=Free Cash Flow / Market Cap
=1987.461 / 28935.172
=6.87%

Paychex's annualized FCF Yield % for the quarter that ended in May. 2026 is calculated as

FCF Yield %=Free Cash Flow * Annualized Factor / Market Cap
=440.84 * 4 / 28935.172
=6.09%

* 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.

Frequently Asked Questions Learn more about FCF Yield % →
What does a FCF Yield % of 6.75 mean?
Paychex (FRA:PCX) has a FCF Yield % of 6.75 as of Jun. 26, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Paychex and its competitors. This is 70% above median its historical median of 3.96. Over the past decade, Paychex's FCF Yield % has ranged from 2.49 to 6.79. According to the industry distribution chart, Paychex ranks #731 out of 2868 companies in the Software industry, placing it in the top 25.5%.
Is Paychex's FCF Yield % too high?
Paychex's current FCF Yield % of 6.75 is 70% above median its 10-year median of 3.96. Over the past 10 years, this metric has ranged from a low of 2.49 to a high of 6.79. The Software industry median FCF Yield % is 0.89. Paychex's value of 6.75 is 662.7% above this industry median. Based on the distribution chart, Paychex ranks #731 out of 2868 companies in the Software industry, which is above the industry midpoint. Overall, Paychex has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's FCF Yield % compare to WDAY and ROP?
According to the Software industry distribution chart, Paychex ranks #731 out of 2868 companies for FCF Yield %. This puts Paychex in the upper half of its industry. The industry median FCF Yield % is 0.89. Paychex's value of 6.75 is 662.7% above this benchmark. Historically, Paychex's own FCF Yield % has ranged from 2.49 to 6.79 over the past decade. While the company's 10-year median is 3.96 vs. the industry median of 0.89, 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 FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.89, based on 2,868 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current FCF Yield % of 6.75 is 662.7% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Paychex and its competitors. For the Software industry, the median FCF Yield % is 0.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current FCF Yield % is 6.75, which is 70% above median its own 10-year median of 3.96. 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 Significantly Undervalued. The stock's GF Value™ is €136.39, compared to a current price of €84.39 — trading 38.1% below its estimated fair value. The current FCF Yield % is 6.75, which is 70% above median its 10-year median of 3.96 and 662.7% above the Software industry median of 0.89. Paychex's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Paychex (FRA:PCX), the current FCF Yield % is 6.75 as of Jun. 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 €84.39 is trading 38.1% below its estimated GF Value™ of €136.39. GuruFocus considers Paychex to be Significantly Undervalued.

Key valuation signals for FRA:PCX:

  • FCF Yield %: 6.75 (70% above median its 10-year median of 3.96)
  • GF Value™: €136.39 vs. price of €84.39 (38.1% below fair value)
  • GF Score™: 82/100 with 4 warning signs
  • Industry Position: 662.7% above the Software median (#731 of 2868)

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 Business Description

Address 911 Panorama Trail South, Rochester, NY, USA, 14625-2396
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.
82GF Score

Get the complete analysis for FRA:PCX

FCF Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€84.39
Price
€136.39
GF Value