Is Paychex, Inc. (PAYX) Undervalued?
Based on the current stock price of $114.19 and a P/E ratio of 25.83,Paychex, Inc. has a PEG ratio of 2.52.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.52, PAYX appears to be potentially overvalued relative to its growth rate of 10.25%.
Based on a PEG ratio of 1.84 (adjusted for dividends).
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How we analyzed PAYX
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 25.83and dividing it by the annual growth rate of 10.25%.
PEG = 25.83 (P/E) ÷ 10.25 (Growth) = 2.52
Frequently Asked Questions about PAYX
What is the current PEG Ratio for Paychex, Inc. (PAYX)?+
The current PEG Ratio for Paychex, Inc. is 2.52. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is PAYX stock undervalued right now?+
Based on the PEG ratio of 2.52, Paychex, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for PAYX?+
The PEGY ratio for Paychex, Inc. is 1.84. This metric accounts for dividend yield (3.78%), providing a more complete valuation picture.