Latest Ratios: P/E Ratio 22.1x · EV/EBITDA 14.2x · ROE 44.8%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $38.4B | $34.9B | $57.2B | $43.5B | $38.0B | $45.0B | $36.6B | $26.1B | $31.0B | $23.7B | $21.5B |
| Enterprise Value | $41.9B | $38.4B | $60.6B | $42.9B | $37.7B | $45.5B | $36.6B | $26.1B | $31.2B | $23.3B | $21.3B |
| P/E Ratio → | 22.11 | 19.83 | 34.48 | 25.73 | 24.40 | 32.25 | 33.38 | 23.78 | 30.00 | 25.42 | 26.32 |
| P/S Ratio | 5.90 | 5.36 | 10.26 | 8.24 | 7.59 | 9.75 | 9.03 | 6.46 | 8.23 | 7.01 | 6.82 |
| P/B Ratio | 10.42 | 9.35 | 13.85 | 11.45 | 10.88 | 14.57 | 12.42 | 9.38 | 11.85 | 11.71 | 10.98 |
| P/FCF | 16.56 | 15.04 | 32.49 | 25.06 | 24.43 | 32.75 | 31.97 | 19.86 | 26.63 | 21.12 | 24.80 |
| P/OCF | 15.04 | 13.66 | 29.30 | 22.93 | 22.37 | 29.87 | 29.06 | 18.11 | 24.07 | 18.57 | 22.36 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.89 | 10.87 | 8.13 | 7.52 | 9.86 | 9.01 | 6.46 | 8.26 | 6.91 | 6.76 |
| EV / EBITDA | 14.19 | 13.00 | 25.05 | 18.25 | 17.04 | 22.38 | 22.12 | 15.62 | 20.08 | 16.38 | 15.58 |
| EV / EBIT | 16.70 | 15.29 | 26.55 | 19.03 | 18.06 | 24.43 | 24.87 | 17.86 | 22.65 | 18.08 | 16.88 |
| EV / FCF | — | 16.53 | 34.42 | 24.71 | 24.20 | 33.12 | 31.91 | 19.85 | 26.74 | 20.80 | 24.58 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 74.3% | 74.3% | 72.4% | 72.0% | 71.0% | 70.6% | 68.7% | 68.3% | 68.8% | 69.9% | 70.8% |
| Operating Margin | 38.6% | 38.6% | 39.6% | 41.2% | 40.6% | 39.9% | 36.0% | 36.1% | 36.3% | 38.1% | 39.3% |
| Net Profit Margin | 27.0% | 27.0% | 29.7% | 32.0% | 31.1% | 30.2% | 27.1% | 27.2% | 27.4% | 27.6% | 25.9% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 44.8% | 44.8% | 41.8% | 46.3% | 47.3% | 46.2% | 38.3% | 40.7% | 44.5% | 46.9% | 42.3% |
| ROA | 10.8% | 10.8% | 12.3% | 16.2% | 15.4% | 14.8% | 12.3% | 12.7% | 12.8% | 13.1% | 12.3% |
| ROIC | 25.6% | 25.6% | 30.9% | 51.5% | 45.3% | 42.6% | 38.8% | 39.6% | 46.5% | 56.2% | 52.4% |
| ROCE | 26.5% | 26.5% | 30.1% | 44.3% | 44.6% | 42.5% | 34.7% | 36.7% | 45.7% | 60.2% | 59.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.23 | 1.23 | 1.22 | 0.23 | 0.25 | 0.29 | 0.31 | 0.32 | 0.31 | — | — |
| Debt / EBITDA | 1.56 | 1.56 | 2.08 | 0.37 | 0.39 | 0.43 | 0.56 | 0.54 | 0.52 | — | — |
| Net Debt / Equity | — | 0.93 | 0.82 | -0.16 | -0.10 | 0.17 | -0.02 | -0.00 | 0.05 | -0.18 | -0.09 |
| Net Debt / EBITDA | 1.17 | 1.17 | 1.40 | -0.26 | -0.16 | 0.25 | -0.04 | -0.00 | 0.09 | -0.25 | -0.14 |
| Debt / FCF | — | 1.49 | 1.93 | -0.35 | -0.23 | 0.37 | -0.06 | -0.00 | 0.12 | -0.32 | -0.21 |
| Interest Coverage | 9.32 | 9.32 | 21.64 | 60.46 | 56.81 | 50.85 | 41.06 | 37.64 | 78.22 | 331.15 | 504.64 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.26 | 1.26 | 1.28 | 1.37 | 1.30 | 1.25 | 1.25 | 1.23 | 1.17 | 1.09 | 1.12 |
| Quick Ratio | 1.26 | 1.26 | 1.28 | 1.37 | 1.30 | 1.25 | 1.25 | 1.23 | 1.17 | 1.09 | 1.12 |
| Cash Ratio | 0.17 | 0.17 | 0.24 | 0.28 | 0.27 | 0.23 | 0.21 | 0.21 | 0.15 | 0.08 | 0.07 |
| Asset Turnover | — | 0.40 | 0.34 | 0.51 | 0.47 | 0.48 | 0.44 | 0.47 | 0.43 | 0.45 | 0.46 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 123.75 | 129.38 | 112.39 | 103.97 | 104.33 | 94.79 | 71.39 | 82.65 | 56.64 | 62.94 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.1% | 4.6% | 2.5% | 3.0% | 3.1% | 2.2% | 2.5% | 3.4% | 2.7% | 3.1% | 3.1% |
| Payout Ratio | 90.3% | 90.3% | 87.4% | 77.8% | 75.5% | 71.8% | 82.8% | 81.0% | 79.9% | 79.2% | 81.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.5% | 5.0% | 2.9% | 3.9% | 4.1% | 3.1% | 3.0% | 4.2% | 3.3% | 3.9% | 3.8% |
| FCF Yield | 6.0% | 6.7% | 3.1% | 4.0% | 4.1% | 3.1% | 3.1% | 5.0% | 3.8% | 4.7% | 4.0% |
| Buyback Yield | 1.6% | 1.8% | 0.2% | 0.4% | 0.0% | 0.3% | 0.4% | 0.7% | 0.2% | 0.6% | 0.8% |
| Total Shareholder Yield | 5.7% | 6.3% | 2.7% | 3.4% | 3.1% | 2.5% | 2.9% | 4.1% | 2.8% | 3.7% | 3.9% |
| Shares Outstanding | — | $360M | $362M | $362M | $362M | $363M | $362M | $361M | $362M | $362M | $363M |
SMB economic sensitivity
According to current market data, Paychex trades at a forward P/E of 18.19, which appears to command a premium valuation relative to its historical averages, suggesting that investors are pricing in the durability of its recurring revenue model despite broader macroeconomic uncertainty in the small business sector.
The current P/E multiple reflects a market willingness to pay for the stability of Paychex's dividend and its defensive positioning in the SMB payroll space. However, the PEG ratio of 2.03 indicates that the current valuation may be stretched relative to near-term growth expectations, warranting caution regarding potential multiple compression if organic growth fails to accelerate.
As reported in recent financial statements, Paychex's ROIC has fluctuated significantly, dropping from a peak of 16.4% in 2024Q3 to 6.3% in 2026Q4, which suggests that recent capital allocation decisions or increased debt levels may be diluting the company's historical ability to compound returns on invested capital.
The decline in ROIC appears to coincide with the company's shift toward a more leveraged balance sheet and increased goodwill from acquisitions. Investors should monitor whether this trend represents a structural decay in capital efficiency or a temporary impact from integrating recent investments into the core service platform.
Based on the provided quarterly data, Paychex's asset turnover remains consistently low at approximately 0.10, which is characteristic of a service-heavy model that relies on high-margin fee generation rather than asset-intensive operations to drive its overall financial performance and long-term shareholder value creation.
The stability of the asset turnover ratio confirms that the business model is not becoming more capital-intensive, which is a positive sign for long-term scalability. However, the lack of improvement in this metric suggests that revenue growth is largely tied to client acquisition and pricing power rather than operational efficiency gains within the existing asset base.
According to recent SEC filings, Paychex has transitioned from a near-debt-free entity to one with a debt-to-equity ratio of 1.23, a significant shift that warrants close monitoring as interest coverage ratios have tightened from over 60x to approximately 9.35x in the most recent quarter.
While the current interest coverage remains adequate, the rapid increase in leverage introduces a new layer of financial risk that was previously absent from the company's profile. This change suggests that management is utilizing debt to optimize the capital structure, though it leaves less room for error should interest rates remain elevated or operating cash flows soften.
Investors frequently misapply the standard P/E ratio to Paychex, as it fails to account for the significant non-operating income generated by interest on client funds, which can artificially inflate net margins and mask the underlying performance of the core HR and payroll software business.
A more accurate assessment of the company's earning power requires adjusting for the volatility of float income, which is highly sensitive to interest rate cycles. Analysts should instead focus on EV/EBITDA or P/FCF, which better capture the operational cash-generative capacity of the business while stripping out the noise created by interest rate-driven fluctuations in net income.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying PAYX stock.
Paychex, Inc.'s current P/E ratio is 22.1x. The historical average is 33.0x. This places it at the 13th percentile of its historical range.
Paychex, Inc.'s current EV/EBITDA is 14.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.9x.
Paychex, Inc.'s return on equity (ROE) is 44.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 37.7%.
Based on historical data, Paychex, Inc. is trading at a P/E of 22.1x. This is at the 13th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Paychex, Inc.'s current dividend yield is 4.08% with a payout ratio of 90.3%.
Paychex, Inc. has 74.3% gross margin and 38.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Paychex, Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.