GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Paychex Inc (NAS:PAYX) » Definitions » PS Ratio

Paychex (Paychex) PS Ratio : 8.34 (As of Jul. 16, 2024)


View and export this data going back to 1983. Start your Free Trial

What is Paychex PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Paychex's share price is $121.63. Paychex's Revenue per Share for the trailing twelve months (TTM) ended in May. 2024 was $14.58. Hence, Paychex's PS Ratio for today is 8.34.

Good Sign:

Paychex Inc stock PS Ratio (=8.12) is close to 3-year low of 7.81

The historical rank and industry rank for Paychex's PS Ratio or its related term are showing as below:

PAYX' s PS Ratio Range Over the Past 10 Years
Min: 4.57   Med: 7.42   Max: 11.63
Current: 8.39

During the past 13 years, Paychex's highest PS Ratio was 11.63. The lowest was 4.57. And the median was 7.42.

PAYX's PS Ratio is ranked worse than
92.18% of 1062 companies
in the Business Services industry
Industry Median: 1.07 vs PAYX: 8.39

Paychex's Revenue per Sharefor the three months ended in May. 2024 was $3.58. Its Revenue per Share for the trailing twelve months (TTM) ended in May. 2024 was $14.58.

Good Sign:

Paychex Inc has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Paychex was 5.50% per year. During the past 3 years, the average Revenue per Share Growth Rate was 9.20% per year. During the past 5 years, the average Revenue per Share Growth Rate was 7.20% per year. During the past 10 years, the average Revenue per Share Growth Rate was 7.80% per year.

During the past 13 years, Paychex's highest 3-Year average Revenue per Share Growth Rate was 57.30% per year. The lowest was -13.20% per year. And the median was 9.20% per year.

Back to Basics: PS Ratio


Paychex PS Ratio Historical Data

The historical data trend for Paychex's PS Ratio 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 PS Ratio Chart

Paychex Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.46 9.03 9.75 7.59 8.24

Paychex Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
PS Ratio 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 7.59 8.71 8.57 8.52 8.24

Competitive Comparison of Paychex's PS Ratio

For the Staffing & Employment Services subindustry, Paychex's PS Ratio, along with its competitors' market caps and PS Ratio 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's PS Ratio Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Paychex's PS Ratio distribution charts can be found below:

* The bar in red indicates where Paychex's PS Ratio falls into.



Paychex PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Paychex's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=121.63/14.578
=8.34

Paychex's Share Price of today is $121.63.
Paychex's Revenue per Share for the trailing twelve months (TTM) ended in May. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $14.58.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Paychex  (NAS:PAYX) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Paychex PS Ratio Related Terms

Thank you for viewing the detailed overview of Paychex's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Paychex (Paychex) Business Description

Traded in Other Exchanges
Address
911 Panorama Trail South, Rochester, NY, USA, 14625-2396
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 740,000 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.
Executives
Flaschen David J S director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Christopher C Simmons officer: VP, Controller & Treasurer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Michael E Gioja officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Efrain Rivera officer: Sr. Vice President, CFO 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Martin Mucci officer: Sr. Vice President 911 PANORAMA TRAIL S, ROCHESTER NY 14625
Joseph M Tucci director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Joseph M Velli director
Elizabeth Roaldsen officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Karen E. Saunders-mcclendon officer: VP, Chief Human Resources Offi 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Theresa M. Payton director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
John B Gibson officer: Sr. VP, Service CONVERGYS CORPORATION, 201 EAST FOURTH STREET, CINCINNATI OH 45202
Mark Anthony Bottini officer: Sr. VP of Sales 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Robert L. Schrader officer: VP/Controller 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Stephanie L Schaeffer officer: Chief Legal Officer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Joseph Doody director CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701

Paychex (Paychex) Headlines

From GuruFocus

Paychex Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024

Q2 2020 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2024 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2021 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Paychex Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024

Q2 2021 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q2 2024 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2023 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024