Paychex, Inc. (PAYX) P/E Ratio History
Historical price-to-earnings valuation from 1990 to 2026
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PAYX Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 6, 2026, Paychex, Inc. (PAYX) trades at a price-to-earnings ratio of 20.0x, with a stock price of $91.38 and trailing twelve-month earnings per share of $4.42.
The current P/E is 33% below its 5-year average of 29.9x. Over the past five years, PAYX's P/E has ranged from a low of 24.4x to a high of 34.6x, placing the current valuation at the 0th percentile of its historical range.
Compared to the Industrials sector median P/E of 25.9x, PAYX trades at a 23% discount to its sector peers. The sector includes 414 companies with P/E ratios ranging from 0.0x to 185.4x.
The PEG ratio of 2.34 (P/E divided by -2% EPS growth) suggests the stock may be expensive relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, PAYX trades at a notable discount to the S&P 500 median P/E of 25.2x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our PAYX DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
PAYX P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $83B | 20.8 | 1.75 | +10% | |
| $6B | 25.5 | 0.90 | +11% | |
| $7B | 15.6 | 0.58 | -9% | |
| $2B | 12.9 | - | -8% | |
| $257M | 21.7 | 0.96 | -55% | |
| $601M | 6.1Lowest | 0.24Best | +120%Best | |
| $108B | 28.4 | 1.95 | +31% | |
| $5B | 17.0 | - | +13% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
PAYX Historical P/E Data (1990–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q2 | Sun Nov 30 2025 00:00:00 GM | $111.69 | $4.41 | 25.3x | -27% |
| FY2026 Q1 | Sun Aug 31 2025 00:00:00 GM | $139.46 | $4.45 | 31.3x | -10% |
| FY2025 Q4 | Sat May 31 2025 00:00:00 GM | $157.91 | $4.57 | 34.6x | -1% |
| FY2025 Q3 | Fri Feb 28 2025 00:00:00 GM | $151.67 | $4.80 | 31.6x | -9% |
| FY2025 Q2 | Sat Nov 30 2024 00:00:00 GM | $146.27 | $4.75 | 30.8x | -11% |
| FY2025 Q1 | Sat Aug 31 2024 00:00:00 GM | $131.20 | $4.69 | 28.0x | -19% |
| FY2024 Q4 | Fri May 31 2024 00:00:00 GM | $120.16 | $4.67 | 25.7x | -26% |
| FY2024 Q3 | $122.62 | $4.59 | 26.7x | -23% | |
| FY2024 Q2 | $121.97 | $4.50 | 27.1x | -22% | |
| FY2024 Q1 | $122.23 | $4.41 | 27.7x | -20% | |
| FY2023 Q4 | Wed May 31 2023 00:00:00 GM | $104.93 | $4.30 | 24.4x | -30% |
| FY2023 Q3 | $110.40 | $4.15 | 26.6x | -23% |
Average P/E for displayed period: 34.7x
Full PAYX Stock Analysis
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Start ComparisonPAYX — Frequently Asked Questions
Quick answers to the most common questions about buying PAYX stock.
Is PAYX stock overvalued or undervalued?
PAYX trades at 20.0x P/E, below its 5-year average of 29.9x. At the N/A percentile of historical range, the stock is priced at a discount to its own history.
How does PAYX's valuation compare to peers?
Paychex, Inc. P/E of 20.0x compares to sector median of 25.9x. The discount suggests lower growth expectations or higher risk.
What is PAYX's PEG ratio?
PAYX PEG ratio is 2.34. Above 2.0 indicates premium valuation relative to growth rate. Historical P/E data spans 1990-2026.