Has The Recent Share Price Slide Created An Opportunity In Paychex (PAYX)?

Simply Wall St.02:36

Wondering if Paychex is starting to look like good value after a rough patch, or if the market is signaling something you should not ignore? The stock closed at US$106.63, with a 4.1% decline over 7 ...

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The stock closed at US$106.63, with a 4.1% decline over 7 ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/commercial-services/nasdaq-payx/paychex/news/has-the-recent-share-price-slide-created-an-opportunity-in-p\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Has The Recent Share Price Slide Created An Opportunity In Paychex (PAYX)?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHas The Recent Share Price Slide Created An Opportunity In Paychex (PAYX)?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-25 02:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/commercial-services/nasdaq-payx/paychex/news/has-the-recent-share-price-slide-created-an-opportunity-in-p><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wondering if Paychex is starting to look like good value after a rough patch, or if the market is signaling something you should not ignore? The stock closed at US$106.63, with a 4.1% decline over 7 ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/commercial-services/nasdaq-payx/paychex/news/has-the-recent-share-price-slide-created-an-opportunity-in-p\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4106","symbol_name":"数据处理与外包服务","start_time":0,"source_url":"https://simplywall.st/stocks/us/commercial-services/nasdaq-payx/paychex/news/has-the-recent-share-price-slide-created-an-opportunity-in-p","article_id":"2606846237","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/295368-main-header/1756255308320"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/commercial-services/nasdaq-payx/paychex/news/has-the-recent-share-price-slide-created-an-opportunity-in-p","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2606846237","pubTimestamp":1769279818,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Wondering if Paychex is starting to look like good value after a rough patch, or if the market is signaling something you should not ignore?\nThe stock closed at US$106.63, with a 4.1% decline over 7 days, 6.9% decline over 30 days, 1.8% decline year to date, 24.7% decline over 1 year, 3.3% gain over 3 years, and 39.6% gain over 5 years. Together, these figures provide a mixed picture of recent and longer term performance.\nRecent discussion around Paychex has focused on how its share price...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4106":"数据处理与外包服务","IE00BVYPNV92.GBP":"GUINNESS GLOBAL EQUITY INCOME \"C\" (GBP) ACC","IE00BGHQF631.EUR":"GUINNESS GLOBAL EQUITY INCOME \"C\" (EUR) ACC","LU0738911758.USD":"Blackrock Global Equity Income A6 USD","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","PAYX":"沛齐","BK4130":"人力资源与就业服务","IE00B3PB1722.GBP":"GUINNESS GLOBAL EQUITY INCOME \"C\" (GBP) INC","LU0661504455.SGD":"Blackrock Global Equity Income A5 SGD-H","LU0949170772.SGD":"Blackrock Global Equity Income A6 SGD-H","IE00B42XCP33.USD":"GUINNESS GLOBAL EQUITY INCOME \"C\" (USD) INC","IE00BDGV0183.EUR":"GUINNESS GLOBAL EQUITY INCOME \"C\" (EUR) INC","IE00BVYPNW00.USD":"GUINNESS GLOBAL EQUITY INCOME \"C\" (USD) ACC","IE00B3T34201.USD":"BNY MELLON GLOBAL EQUITY INCOME \"B\" (USD) INC","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","BK4588":"碎股","BK4585":"ETF&股票定投概念"},"translate_title":"最近的股价下滑是否为Paychex(PAYX)创造了机会？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PAYX":1.5,"DCF":1},"content_text":"Wondering if Paychex is starting to look like good value after a rough patch, or if the market is signaling something you should not ignore? The stock closed at US$106.63, with a 4.1% decline over 7 days, 6.9% decline over 30 days, 1.8% decline year to date, 24.7% decline over 1 year, 3.3% gain over 3 years, and 39.6% gain over 5 years. Together, these figures provide a mixed picture of recent and longer term performance. Recent discussion around Paychex has focused on how its share price has reset over the last year, with some investors reassessing what they are willing to pay for the business. That context matters if you are trying to work out whether the current level reflects an overreaction or a more measured view of the company. On our checks, Paychex scores 5 out of 6 for value, and you can see the full breakdown in our valuation score of 5. We will unpack that using several common approaches, then finish with a way to think about valuation that goes beyond the usual numbers.  Find out why Paychex's -24.7% return over the last year is lagging behind its peers. AdvertisementApproach 1: Paychex Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a company might be worth today by projecting its future cash flows and then discounting those back into present value using a required return. For Paychex, the model uses a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is reported at about $2.0b. Analysts provide cash flow estimates for the next few years, and beyond that Simply Wall St extrapolates further, with projected free cash flow of $3.5b in 2035 according to the model data. Putting those cash flow projections together, the DCF model arrives at an estimated intrinsic value of about $169.46 per share. Compared with the recent share price of US$106.63, this implies the stock trades at a 37.1% discount to the modelled fair value, which indicates Paychex may be undervalued on this cash flow view. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Paychex is undervalued by 37.1%. Track this in your watchlist or portfolio, or discover 864 more undervalued stocks based on cash flows. PAYX Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Paychex. Approach 2: Paychex Price vs Earnings For a profitable business like Paychex, the P/E ratio is a useful way to relate what you pay for each share to the earnings that support it. It helps you see how many dollars the market is currently willing to pay for one dollar of annual earnings. What counts as a “normal” P/E depends on what investors expect for earnings growth and how much risk they see in the business. Higher expected growth or lower perceived risk can justify a higher P/E, while lower expected growth or higher risk usually point to a lower one. Paychex currently trades on a P/E of 24x. That is close to the Professional Services industry average of about 24.36x and below the peer group average of about 25.99x. Simply Wall St also calculates a proprietary “Fair Ratio” for Paychex of 29.51x, which is the P/E level it might warrant given factors such as earnings growth, profit margins, industry, market cap and company specific risks. Compared with simple peer or industry comparisons, the Fair Ratio is designed to be more tailored, because it considers those business characteristics rather than just lining the company up against broad averages. With Paychex at 24x versus a Fair Ratio of 29.51x, the shares screen as trading below that modelled level. Result: UNDERVALUED NasdaqGS:PAYX P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1428 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Paychex Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Paychex with the numbers behind it. A Narrative is your story for the company, where you spell out what you think happens to its revenue, earnings and margins over time, then link that story to a forecast and a fair value estimate rather than relying only on standard ratios. On Simply Wall St, Narratives sit inside the Community page and are used by millions of investors as an accessible tool to compare a Fair Value to the current share price, update that view automatically when new earnings or news arrive, and decide whether the gap between value and price is wide enough to justify acting. For Paychex, one investor might set a high fair value with optimistic assumptions on future margins, while another might use more cautious inputs and arrive at a much lower figure. Seeing both side by side can help you decide which story you find more convincing. Do you think there's more to the story for Paychex? Head over to our Community to see what others are saying! NasdaqGS:PAYX 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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