DCF Tool


Paychex Inc. – Payroll Services
paychex, inc. (nasdaq: payx) is a leading provider of integrated human capital management solutions for payroll, hr, retirement, and insurance services. by combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. backed by 45 years of industry expertise, paychex serves approximately 605,000 payroll clients across more than 100 locations and pays one out of every 12 american private sector employees.
Analysis Results
Intrinsic Value $96.36
Latest Price $122.34
Relative Value 27% overvalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 10.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 1.7 1.57
2025 1.88 1.61
2026 2.08 1.64
2027 2.3 1.68
2028 2.54 1.72
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 42.3 billion. This corresponds to a present value of 26.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.22 billion. Adding in the terminal value gives a total present value of 34.7 billion.

There are presently 360.0 million outstanding shares, so the intrinsic value per share is 96.36.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,528,100,000
Current Cash 1,595,400,000
Current Liabilities 5,805,400,000
Current Debt 10,200,000
Non-Cash Working Capital (NCWC) 137,500,000
Change in NCWC 40,300,000
EBIT 2,033,100,000
Tax Provision 490,900,000
Depreciation and Amortization 176,600,000
Capital Expenditure -153,400,000
Unlevered Free Cash Flow 1,609,319,075
Current Assets 6,581,600,000
Current Cash 1,223,900,000
Current Liabilities 5,269,200,000
Current Debt 8,700,000
Non-Cash Working Capital (NCWC) 97,200,000
Change in NCWC -109,600,000
EBIT 1,840,000,000
Tax Provision 431,800,000
Depreciation and Amortization 191,800,000
Capital Expenditure -143,200,000
Unlevered Free Cash Flow 1,343,555,519
Current Assets 6,169,500,000
Current Cash 1,031,900,000
Current Liabilities 4,938,200,000
Current Debt 7,400,000
Non-Cash Working Capital (NCWC) 206,800,000
Change in NCWC 96,400,000
EBIT 1,460,700,000
Tax Provision 336,700,000
Depreciation and Amortization 192,000,000
Capital Expenditure -123,300,000
Unlevered Free Cash Flow 1,282,878,726
Current Assets 5,464,600,000
Current Cash 932,400,000
Current Liabilities 4,426,900,000
Current Debt 5,100,000
Non-Cash Working Capital (NCWC) 110,400,000
Change in NCWC -9,700,000
EBIT 1,460,500,000
Tax Provision 339,000,000
Depreciation and Amortization 209,700
Capital Expenditure -136,800,000
Unlevered Free Cash Flow 969,689,833
Current Assets 5,677,700,000
Current Cash 712,600,000
Current Liabilities 4,845,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 120,100,000
Change in NCWC 47,100,000
EBIT 1,371,300,000
Tax Provision 333,600,000
Depreciation and Amortization 181,500,000
Capital Expenditure -129,100,000
Unlevered Free Cash Flow 1,136,395,263
Current Assets 5,784,400,000
Current Cash 424,200,000
Current Liabilities 5,287,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 73,000,000
Change in NCWC -150,500,000
EBIT 1,288,100,000
Tax Provision 362,400,000
Depreciation and Amortization 138,000,000
Capital Expenditure -193,800,000
Unlevered Free Cash Flow 721,636,864
Current Assets 5,272,000,000
Current Cash 323,400,000
Current Liabilities 4,725,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 223,500,000
Change in NCWC 77,900,000
EBIT 1,237,400,000
Tax Provision 427,500,000
Depreciation and Amortization 126,900,000
Capital Expenditure -102,900,000
Unlevered Free Cash Flow 914,341,372
Current Assets 4,863,600,000
Current Cash 352,100,000
Current Liabilities 4,365,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 145,600,000
Change in NCWC 152,000,000
EBIT 1,143,800,000
Tax Provision 394,300,000
Depreciation and Amortization 115,100,000
Capital Expenditure -106,700,000
Unlevered Free Cash Flow 912,400,555
Current Assets 5,103,200,000
Current Cash 536,600,000
Current Liabilities 4,573,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -6,400,000
Change in NCWC -27,700,000
EBIT 1,052,900,000
Tax Provision 385,100,000
Depreciation and Amortization 106,600,000
Capital Expenditure -102,800,000
Unlevered Free Cash Flow 646,479,443
Current Assets 5,011,400,000
Current Cash 551,200,000
Current Liabilities 4,438,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,300,000
Change in NCWC -37,600,000
EBIT 982,300,000
Tax Provision 360,600,000
Depreciation and Amortization 105,000,000
Capital Expenditure -95,400,000
Unlevered Free Cash Flow 595,816,668
Current Assets 4,832,600,000
Current Cash 505,500,000
Current Liabilities 4,268,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 58,900,000
Change in NCWC 45,000,000
EBIT 904,800,000
Tax Provision 342,400,000
Depreciation and Amortization 98,200,000
Capital Expenditure -103,800,000
Unlevered Free Cash Flow 604,279,526
Current Assets 5,075,900,000
Current Cash 316,300,000
Current Liabilities 4,745,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 13,900,000
Change in NCWC 8,300,000
EBIT 853,900,000
Tax Provision 312,300,000
Depreciation and Amortization 97,800,000
Capital Expenditure -90,900,000
Unlevered Free Cash Flow 559,123,282

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.