PAYX

Paychex, Inc.
TechnologySoftware - ApplicationNASDAQ
$96.98
+$2.81 (2.90%)today
Conviction
5/ 10
Fair Value$102.73
Upside+5.93%
Signal2.96
Market Cap$33.0B
52W Range$86.89–$161.24
Next EarningsJun 25

Conviction History

Conviction Changes

Mar 18, 2026, 3:11 PM65conviction-rescore
Premium Content

Upgrade to premium to see the full reasoning behind each conviction change.

Sign in to unlock

Price History

FAIR VALUE ANALYSISMonte Carlo · 5,000 runs · 99% valid
Fair Value$70.05
Current Price$92.55
Upside / Down-24.3%
P(Undervalued)5.7%
P(20%+ Up)0.0%
P(15%+ Down)75.0%

Fair Value Distribution — percentile bands

5.7% of simulations place fair value above current price

WHAT IS PRICED IN

Revenue-Based Reverse DCF

11.2%/yr

±4.0% · revenue growth to justify current price

FCF-Based Reverse DCF

7.9%/yr

±2.9% · FCF growth to justify current price

THE GAP

Market pricing margin expansion or capex normalization

Premium Content

Upgrade to premium for full distribution data, sensitivity analysis, and segment breakdowns.

Sign in to unlock
Bull Case

Paychex payroll/HCM for SMB; attached services (retirement, insurance) growing; sticky revenue.

Bear Case

Employment slowdown risk; fintech competition from Rippling/Gusto; pricing pressure.

Updated Apr 7

Research Feed

analysisMar 16
Conviction: unchanged
PAYX: Fallen Quality or Structurally Impaired? AI Disruption vs SMB Moat

Stock down 42% from 52w high ($161→$93). Bears: AI threatens payroll commoditization, Paycor integration messy, organic growth weak. Bulls: fPE 15.8x cheap for quality, 24% analyst upside to $115, $12...

sec_10qMar 2
Conviction: unchanged
Paychex Q2 FY2026: Paycor Integration Begins, Margins Compressed But Outlook Intact

Paychex reports strong Q2 with 17% service revenue growth (7% organic + Paycor contribution), though reported net income down 4% due to .9M acquisition costs. Adjusted metrics beat (+11% adj. NI, +21%...