Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2023-06-07), Paychex's Intrinsic Value: Projected FCF is $49.74. The stock price of Paychex is $111.41. Therefore, Paychex's Price-to-Intrinsic-Value-Projected-FCF of today is 2.2.
The historical rank and industry rank for Paychex's Intrinsic Value: Projected FCF or its related term are showing as below:
PAYX'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.97 Med: 2.5 Max: 9.62
Current: 2.24
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Paychex was 9.62. The lowest was 0.97. And the median was 2.50.
PAYX's Price-to-Projected-FCF is ranked worse than 79.78% of 643
companies
in the Business Services industry
Industry Median: 0.96
vs PAYX: 2.24
Paychex Intrinsic Value: Projected FCF Historical Data
The historical data trend for Paychex's Intrinsic Value: Projected 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.
* Premium members only.
Paychex Annual Data
Trend
May13
May14
May15
May16
May17
May18
May19
May20
May21
May22
Intrinsic Value: Projected FCF
32.86
36.60
40.31
40.56
43.99
Paychex Quarterly Data
May18
Aug18
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
Intrinsic Value: Projected FCF
44.89
43.99
44.88
45.37
49.74
Competitive Comparison
For the Staffing & Employment Services subindustry, Paychex's Intrinsic Value: Projected FCF, along with its competitors' market caps and Intrinsic Value: Projected 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 Intrinsic Value: Projected FCF Distribution
For the Business Services industry and Industrials sector, Paychex's Intrinsic Value: Projected FCF distribution charts can be found below:
* The bar in red indicates where Paychex's Intrinsic Value: Projected FCF falls in comparison to its industry or sector. The grey bar indicates the Intrinsic Value: Projected FCF's extreme value range as defined by GuruFocus.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Paychex's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
111.41
/
49.742424052001
=
2.24
* 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 Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Paychex's Intrinsic Value: Projected FCF 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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