Intrinsic value of Paychex - PAYX

Previous Close

$56.24

  Intrinsic Value

$49.87

stock screener

  Rating & Target

hold

-11%

  Value-price divergence*

-19%

Previous close

$56.24

 
Intrinsic value

$49.87

 
Up/down potential

-11%

 
Rating

hold

 
Value-price divergence*

-19%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of PAYX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 20.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.74
  5.70
  5.63
  5.57
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
  5.14
  5.13
  5.12
  5.11
  5.09
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
  5.04
  5.04
  5.03
Revenue, $m
  2,952
  3,120
  3,296
  3,479
  3,671
  3,872
  4,081
  4,300
  4,530
  4,770
  5,021
  5,285
  5,561
  5,850
  6,152
  6,470
  6,803
  7,152
  7,518
  7,901
  8,304
  8,726
  9,169
  9,634
  10,122
  10,633
  11,170
  11,734
  12,325
  12,946
  13,598
Variable operating expenses, $m
 
  1,747
  1,841
  1,940
  2,044
  2,151
  2,264
  2,383
  2,506
  2,635
  2,771
  2,847
  2,996
  3,151
  3,315
  3,486
  3,665
  3,853
  4,050
  4,257
  4,474
  4,701
  4,940
  5,190
  5,453
  5,729
  6,018
  6,322
  6,640
  6,975
  7,326
Fixed operating expenses, $m
 
  156
  160
  164
  168
  172
  176
  181
  185
  190
  195
  199
  204
  210
  215
  220
  226
  231
  237
  243
  249
  255
  262
  268
  275
  282
  289
  296
  303
  311
  319
Total operating expenses, $m
  1,805
  1,903
  2,001
  2,104
  2,212
  2,323
  2,440
  2,564
  2,691
  2,825
  2,966
  3,046
  3,200
  3,361
  3,530
  3,706
  3,891
  4,084
  4,287
  4,500
  4,723
  4,956
  5,202
  5,458
  5,728
  6,011
  6,307
  6,618
  6,943
  7,286
  7,645
Operating income, $m
  1,147
  1,218
  1,295
  1,376
  1,460
  1,548
  1,640
  1,737
  1,839
  1,945
  2,056
  2,238
  2,360
  2,489
  2,623
  2,764
  2,912
  3,067
  3,230
  3,402
  3,581
  3,770
  3,968
  4,176
  4,394
  4,623
  4,864
  5,116
  5,382
  5,660
  5,953
EBITDA, $m
  1,262
  1,326
  1,406
  1,489
  1,576
  1,667
  1,762
  1,862
  1,966
  2,076
  2,190
  2,311
  2,437
  2,569
  2,707
  2,853
  3,005
  3,165
  3,333
  3,510
  3,695
  3,889
  4,093
  4,308
  4,532
  4,769
  5,017
  5,277
  5,551
  5,838
  6,140
Interest expense (income), $m
  0
  0
  9
  18
  28
  39
  49
  61
  72
  85
  98
  111
  125
  140
  156
  172
  189
  207
  225
  245
  266
  287
  310
  334
  359
  385
  412
  441
  471
  503
  537
Earnings before tax, $m
  1,151
  1,218
  1,286
  1,357
  1,432
  1,510
  1,591
  1,677
  1,766
  1,860
  1,958
  2,127
  2,235
  2,349
  2,468
  2,592
  2,723
  2,861
  3,005
  3,156
  3,315
  3,482
  3,658
  3,842
  4,035
  4,238
  4,451
  4,675
  4,910
  5,157
  5,417
Tax expense, $m
  394
  329
  347
  366
  387
  408
  430
  453
  477
  502
  529
  574
  604
  634
  666
  700
  735
  772
  811
  852
  895
  940
  988
  1,037
  1,089
  1,144
  1,202
  1,262
  1,326
  1,392
  1,463
Net income, $m
  757
  889
  939
  991
  1,045
  1,102
  1,162
  1,224
  1,289
  1,358
  1,430
  1,553
  1,632
  1,714
  1,801
  1,892
  1,988
  2,088
  2,194
  2,304
  2,420
  2,542
  2,670
  2,804
  2,946
  3,094
  3,249
  3,413
  3,584
  3,765
  3,954

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  352
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  6,441
  6,434
  6,796
  7,174
  7,569
  7,983
  8,415
  8,867
  9,340
  9,835
  10,353
  10,896
  11,465
  12,061
  12,685
  13,340
  14,026
  14,746
  15,500
  16,292
  17,122
  17,992
  18,906
  19,864
  20,869
  21,925
  23,032
  24,194
  25,413
  26,693
  28,037
Adjusted assets (=assets-cash), $m
  6,089
  6,434
  6,796
  7,174
  7,569
  7,983
  8,415
  8,867
  9,340
  9,835
  10,353
  10,896
  11,465
  12,061
  12,685
  13,340
  14,026
  14,746
  15,500
  16,292
  17,122
  17,992
  18,906
  19,864
  20,869
  21,925
  23,032
  24,194
  25,413
  26,693
  28,037
Revenue / Adjusted assets
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
Average production assets, $m
  404
  427
  452
  477
  503
  530
  559
  589
  621
  653
  688
  724
  762
  801
  843
  886
  932
  980
  1,030
  1,082
  1,138
  1,195
  1,256
  1,320
  1,387
  1,457
  1,530
  1,608
  1,689
  1,774
  1,863
Working capital, $m
  498
  153
  162
  170
  180
  190
  200
  211
  222
  234
  246
  259
  272
  287
  301
  317
  333
  350
  368
  387
  407
  428
  449
  472
  496
  521
  547
  575
  604
  634
  666
Total debt, $m
  0
  258
  527
  809
  1,103
  1,410
  1,732
  2,068
  2,420
  2,788
  3,174
  3,578
  4,001
  4,444
  4,909
  5,396
  5,907
  6,442
  7,003
  7,592
  8,209
  8,857
  9,537
  10,250
  10,998
  11,783
  12,607
  13,471
  14,379
  15,331
  16,330
Total liabilities, $m
  4,529
  4,787
  5,056
  5,338
  5,632
  5,939
  6,261
  6,597
  6,949
  7,317
  7,703
  8,107
  8,530
  8,973
  9,438
  9,925
  10,436
  10,971
  11,532
  12,121
  12,738
  13,386
  14,066
  14,779
  15,527
  16,312
  17,136
  18,000
  18,908
  19,860
  20,859
Total equity, $m
  1,912
  1,647
  1,740
  1,837
  1,938
  2,044
  2,154
  2,270
  2,391
  2,518
  2,650
  2,789
  2,935
  3,088
  3,247
  3,415
  3,591
  3,775
  3,968
  4,171
  4,383
  4,606
  4,840
  5,085
  5,343
  5,613
  5,896
  6,194
  6,506
  6,833
  7,177
Total liabilities and equity, $m
  6,441
  6,434
  6,796
  7,175
  7,570
  7,983
  8,415
  8,867
  9,340
  9,835
  10,353
  10,896
  11,465
  12,061
  12,685
  13,340
  14,027
  14,746
  15,500
  16,292
  17,121
  17,992
  18,906
  19,864
  20,870
  21,925
  23,032
  24,194
  25,414
  26,693
  28,036
Debt-to-equity ratio
  0.000
  0.160
  0.300
  0.440
  0.570
  0.690
  0.800
  0.910
  1.010
  1.110
  1.200
  1.280
  1.360
  1.440
  1.510
  1.580
  1.640
  1.710
  1.760
  1.820
  1.870
  1.920
  1.970
  2.020
  2.060
  2.100
  2.140
  2.180
  2.210
  2.240
  2.280
Adjusted equity ratio
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  757
  889
  939
  991
  1,045
  1,102
  1,162
  1,224
  1,289
  1,358
  1,430
  1,553
  1,632
  1,714
  1,801
  1,892
  1,988
  2,088
  2,194
  2,304
  2,420
  2,542
  2,670
  2,804
  2,946
  3,094
  3,249
  3,413
  3,584
  3,765
  3,954
Depreciation, amort., depletion, $m
  115
  108
  111
  113
  116
  119
  122
  125
  128
  131
  134
  72
  76
  80
  84
  89
  93
  98
  103
  108
  114
  120
  126
  132
  139
  146
  153
  161
  169
  177
  186
Funds from operations, $m
  1,045
  997
  1,050
  1,104
  1,161
  1,221
  1,283
  1,349
  1,417
  1,489
  1,564
  1,625
  1,708
  1,795
  1,886
  1,981
  2,081
  2,186
  2,297
  2,412
  2,534
  2,662
  2,796
  2,936
  3,084
  3,239
  3,402
  3,574
  3,753
  3,942
  4,140
Change in working capital, $m
  27
  8
  9
  9
  9
  10
  10
  11
  11
  12
  12
  13
  14
  14
  15
  16
  16
  17
  18
  19
  20
  21
  22
  23
  24
  25
  26
  28
  29
  30
  32
Cash from operations, $m
  1,018
  989
  1,041
  1,095
  1,152
  1,211
  1,273
  1,338
  1,406
  1,477
  1,552
  1,612
  1,694
  1,780
  1,871
  1,965
  2,065
  2,169
  2,279
  2,394
  2,514
  2,641
  2,774
  2,914
  3,060
  3,214
  3,376
  3,546
  3,724
  3,912
  4,109
Maintenance CAPEX, $m
  0
  -40
  -43
  -45
  -48
  -50
  -53
  -56
  -59
  -62
  -65
  -69
  -72
  -76
  -80
  -84
  -89
  -93
  -98
  -103
  -108
  -114
  -120
  -126
  -132
  -139
  -146
  -153
  -161
  -169
  -177
New CAPEX, $m
  -98
  -23
  -24
  -25
  -26
  -27
  -29
  -30
  -31
  -33
  -34
  -36
  -38
  -40
  -41
  -43
  -46
  -48
  -50
  -53
  -55
  -58
  -61
  -64
  -67
  -70
  -74
  -77
  -81
  -85
  -89
Cash from investing activities, $m
  -63
  -63
  -67
  -70
  -74
  -77
  -82
  -86
  -90
  -95
  -99
  -105
  -110
  -116
  -121
  -127
  -135
  -141
  -148
  -156
  -163
  -172
  -181
  -190
  -199
  -209
  -220
  -230
  -242
  -254
  -266
Free cash flow, $m
  955
  925
  974
  1,025
  1,078
  1,133
  1,191
  1,252
  1,315
  1,382
  1,452
  1,507
  1,584
  1,665
  1,749
  1,838
  1,931
  2,028
  2,131
  2,238
  2,351
  2,469
  2,594
  2,724
  2,862
  3,006
  3,157
  3,316
  3,483
  3,658
  3,842
Issuance/(repayment) of debt, $m
  0
  258
  269
  281
  294
  307
  322
  336
  352
  368
  386
  404
  423
  443
  465
  487
  511
  535
  561
  589
  618
  648
  680
  713
  748
  785
  824
  865
  907
  952
  1,000
Issuance/(repurchase) of shares, $m
  -108
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -387
  258
  269
  281
  294
  307
  322
  336
  352
  368
  386
  404
  423
  443
  465
  487
  511
  535
  561
  589
  618
  648
  680
  713
  748
  785
  824
  865
  907
  952
  1,000
Total cash flow (excl. dividends), $m
  568
  1,183
  1,244
  1,306
  1,372
  1,441
  1,513
  1,588
  1,667
  1,750
  1,838
  1,911
  2,007
  2,108
  2,214
  2,325
  2,441
  2,564
  2,692
  2,827
  2,968
  3,117
  3,273
  3,437
  3,610
  3,791
  3,981
  4,180
  4,390
  4,610
  4,841
Retained Cash Flow (-), $m
  -126
  -87
  -93
  -97
  -101
  -106
  -111
  -116
  -121
  -127
  -133
  -139
  -146
  -153
  -160
  -168
  -176
  -184
  -193
  -203
  -212
  -223
  -234
  -245
  -257
  -270
  -283
  -297
  -312
  -328
  -344
Prev. year cash balance distribution, $m
 
  352
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,448
  1,151
  1,209
  1,271
  1,335
  1,402
  1,472
  1,546
  1,624
  1,705
  1,772
  1,862
  1,955
  2,054
  2,157
  2,266
  2,379
  2,499
  2,624
  2,756
  2,894
  3,040
  3,192
  3,352
  3,520
  3,697
  3,883
  4,078
  4,282
  4,498
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,388
  1,054
  1,052
  1,046
  1,035
  1,017
  995
  966
  933
  894
  842
  794
  744
  690
  633
  576
  518
  460
  404
  350
  299
  252
  209
  171
  137
  108
  83
  63
  47
  34
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Paychex, Inc. provides payroll, human resource, insurance, and benefits outsourcing solutions for small to medium-sized businesses in the United States and Germany. The company offers payroll processing services that include payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. It also provides human resource outsourcing services, such as Paychex HR solutions comprising payroll, employer compliance, human resource and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained human resource representative; and retirement services administration, including plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. In addition, the company offers insurance services for property and casualty coverage, such as workers’ compensation, business-owner policies, commercial auto, and health and benefits coverage, including health, dental, vision, and life; cloud-based human resource administration software products for employee benefits management and administration, and time and attendance solutions; and other human resource services and products, such as employee handbooks, management manuals, and personnel and required regulatory forms. Further, it provides various accounting and financial services to small- to medium-sized businesses, which include purchasing of accounts receivable as a means of providing funding to clients in the temporary staffing industry; a cloud-based accounting service; payment processing services; payment distribution services; and a small-business loan resource center. Paychex, Inc. markets its products and services through direct sales force. The company was founded in 1979 and is headquartered in Rochester, New York.

FINANCIAL RATIOS  of  Paychex (PAYX)

Valuation Ratios
P/E Ratio 26.8
Price to Sales 6.9
Price to Book 10.6
Price to Tangible Book
Price to Cash Flow 19.9
Price to Free Cash Flow 22
Growth Rates
Sales Growth Rate 7.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -4.9%
Cap. Spend. - 3 Yr. Gr. Rate -0.2%
Financial Strength
Quick Ratio NaN
Current Ratio 0.9
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 11.7%
Ret/ On Assets - 3 Yr. Avg. 10.8%
Return On Total Capital 40.9%
Ret/ On T. Cap. - 3 Yr. Avg. 38.1%
Return On Equity 40.9%
Return On Equity - 3 Yr. Avg. 38.1%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 71%
Gross Margin - 3 Yr. Avg. 70.8%
EBITDA Margin 42.9%
EBITDA Margin - 3 Yr. Avg. 43%
Operating Margin 38.9%
Oper. Margin - 3 Yr. Avg. 38.8%
Pre-Tax Margin 39%
Pre-Tax Margin - 3 Yr. Avg. 39%
Net Profit Margin 25.6%
Net Profit Margin - 3 Yr. Avg. 25.1%
Effective Tax Rate 34.2%
Eff/ Tax Rate - 3 Yr. Avg. 35.7%
Payout Ratio 80.2%

PAYX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PAYX stock intrinsic value calculation we used $2952 million for the last fiscal year's total revenue generated by Paychex. The default revenue input number comes from 2016 income statement of Paychex. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our PAYX stock valuation model: a) initial revenue growth rate of 5.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for PAYX is calculated based on our internal credit rating of Paychex, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Paychex.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of PAYX stock the variable cost ratio is equal to 56.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $152 million in the base year in the intrinsic value calculation for PAYX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Paychex.

Corporate tax rate of 27% is the nominal tax rate for Paychex. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the PAYX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for PAYX are equal to 13.7%.

Life of production assets of 10 years is the average useful life of capital assets used in Paychex operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for PAYX is equal to 4.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1912 million for Paychex - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 358.223 million for Paychex is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Paychex at the current share price and the inputted number of shares is $20.1 billion.

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COMPANY NEWS

▶ Chipotle-Loving Bill Ackman Locked and Loaded to Torch ADP   [Aug-16-17 05:55PM  TheStreet.com]
▶ ETFs with exposure to Paychex, Inc. : August 7, 2017   [Aug-07-17 04:46PM  Capital Cube]
▶ 4 Stocks to Keep You Invested After Retirement   [Jul-24-17 07:34AM  Motley Fool]
▶ Paychex Elects New Board Member   [Jul-19-17 03:00PM  PR Newswire]
▶ Paychex Increases Quarterly Dividend by 9%   [07:44AM  Business Wire]
▶ 14 Wide-Moat Stocks Set to Grow Their Dividends   [Jul-12-17 06:00AM  Morningstar]
▶ Paychex tops Street 4Q forecasts   [Jun-28-17 09:55PM  Associated Press]
▶ What Happened in the Stock Market Today   [04:59PM  Motley Fool]
▶ Story Stocks from Briefing.com   [11:35AM  Briefing.com]
▶ Cramer's Stop Trading: Paychex   [09:55AM  CNBC Videos]
▶ Paychex, Inc. Value Analysis (NASDAQ:PAYX) : May 30, 2017   [May-30-17 01:09PM  Capital Cube]
▶ Paychex Honored with Two Stevie(R) Awards   [May-25-17 01:30PM  Marketwired]
▶ 7 Quotes That Reveal Paycom Software's Growth Secrets   [May-24-17 07:43PM  Motley Fool]
▶ Paychex Declares Quarterly Dividend   [Apr-28-17 08:43AM  Business Wire]
▶ ETFs with exposure to Paychex, Inc. : April 20, 2017   [Apr-20-17 02:25PM  Capital Cube]
▶ Paychex beats 3Q profit forecasts   [08:40AM  Associated Press]
▶ Paychex, Inc. Reports Third Quarter Results   [08:30AM  Business Wire]
▶ The Staggering Cost of a Quarter-Point Interest-Rate Hike   [Mar-21-17 08:21AM  at Motley Fool]
Stock chart of PAYX Financial statements of PAYX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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