Paychex Valuation
| PCX Stock | EUR 139.40 4.60 3.41% |
At this time, the company appears to be undervalued. Paychex holds a recent Real Value of €158.12 per share. The prevailing price of the company is €139.4. Our model determines the value of Paychex from analyzing the company fundamentals such as Return On Equity of 0.46, operating margin of 0.40 %, and Shares Outstanding of 360.47 M as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Paychex's price fluctuation is very steady at this time. Calculation of the real value of Paychex is based on 3 months time horizon. Increasing Paychex's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Paychex stock is determined by what a typical buyer is willing to pay for full or partial control of Paychex. Since Paychex is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Paychex Stock. However, Paychex's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 139.4 | Real 158.12 | Hype 139.4 |
The real value of Paychex Stock, also known as its intrinsic value, is the underlying worth of Paychex Company, which is reflected in its stock price. It is based on Paychex's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Paychex's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Paychex helps investors to forecast how Paychex stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Paychex more accurately as focusing exclusively on Paychex's fundamentals will not take into account other important factors: Paychex Total Value Analysis
Paychex is at this time estimated to have takeover price of 41.61 B with market capitalization of 36.93 B, debt of 797.7 M, and cash on hands of 712.6 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Paychex fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
41.61 B | 36.93 B | 797.7 M | 712.6 M |
Paychex Investor Information
About 75.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 8th of February 2023. Based on the key measurements obtained from Paychex's financial statements, Paychex is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Paychex Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Paychex has an asset utilization ratio of 47.86 percent. This implies that the Company is making €0.48 for each dollar of assets. An increasing asset utilization means that Paychex is more efficient with each dollar of assets it utilizes for everyday operations.Paychex Ownership Allocation
Paychex owns a total of 360.47 Million outstanding shares. The majority of Paychex outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Paychex to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Paychex. Please pay attention to any change in the institutional holdings of Paychex as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Paychex Profitability Analysis
The company reported the revenue of 4.61 B. Net Income was 1.39 B with profit before overhead, payroll, taxes, and interest of 3.26 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Paychex's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Paychex and how it compares across the competition.
About Paychex Valuation
The stock valuation mechanism determines Paychex's current worth on a weekly basis. Our valuation model uses a comparative analysis of Paychex. We calculate exposure to Paychex's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Paychex's related companies.Paychex, Inc. provides integrated human capital management solutions for payroll, benefits, human resource , retirement, and insurance services for small- to medium-sized businesses in the United States and Europe. Paychex, Inc. was founded in 1979 and is headquartered in Rochester, New York. PAYCHEX INC operates under Business Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 15300 people.
8 Steps to conduct Paychex's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Paychex's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Paychex's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Paychex's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Paychex's revenue streams: Identify Paychex's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Paychex's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Paychex's growth potential: Evaluate Paychex's management, business model, and growth potential.
- Determine Paychex's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Paychex's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Paychex Stock analysis
When running Paychex's price analysis, check to measure Paychex's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Paychex is operating at the current time. Most of Paychex's value examination focuses on studying past and present price action to predict the probability of Paychex's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Paychex's price. Additionally, you may evaluate how the addition of Paychex to your portfolios can decrease your overall portfolio volatility.
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