Question 1

What is Paychex's P/FCF ratio?

Accepted Answer

Paychex (PAYX) P/FCF ratio is 17.1× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Paychex?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Paychex specifically, the relevant sector benchmark is the current sector median of 21.8×.

Question 5

Is Paychex's P/FCF ratio high or low?

Accepted Answer

Paychex's P/FCF ratio of 17.1× is below its own 5-year average of 27.2× and below the sector median of 21.8×. That places the current reading at the 7th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Paychex's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Paychex (PAYX) P/FCF ratio has ranged from a low of 12.7× in 2009 to a high of 52.2× in 2002. The 5-year average is 27.2× and the 5-year median is 27.6×.

Question 7

What was Paychex's P/FCF ratio in 2026?

Accepted Answer

Paychex (PAYX) P/FCF ratio at the end of 2026 was 15.8×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Paychex's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2026	$36.6B	$2.32B	15.8×	-16.4×	May 31, 2026
2025	$56.9B	$1.77B	32.1×	+6.5×	May 31, 2025
2024	$43.3B	$1.69B	25.6×	+1.8×	May 31, 2024
2023	$37.8B	$1.59B	23.8×	-8.8×	May 31, 2023
2022	$44.7B	$1.37B	32.5×	+0.8×	May 31, 2022
2021	$36.4B	$1.15B	31.8×	+12.1×	May 31, 2021
2020	$25.8B	$1.31B	19.6×	-6.8×	May 31, 2020
2019	$30.8B	$1.17B	26.5×	+5.5×	May 31, 2019
2018	$23.5B	$1.12B	21.0×	-3.6×	May 31, 2018
2017	$21.3B	$866M	24.6×	+3.3×	May 31, 2017
2016	$19.5B	$921M	21.2×	-1.4×	May 31, 2016
2015	$17.9B	$792M	22.6×	+3.8×	May 31, 2015
2014	$14.9B	$797M	18.8×	-4.8×	May 31, 2014
2013	$13.6B	$577M	23.5×	+5.9×	May 31, 2013
2012	$10.9B	$617M	17.6×	-1.4×	May 31, 2012
2011	$11.7B	$615M	19.0×	+0.0×	May 31, 2011
2010	$10.2B	$538M	19.0×	+2.5×	May 31, 2010
2009	$10.3B	$624M	16.5×	-2.9×	May 31, 2009
2008	$12.5B	$642M	19.4×	-8.4×	May 31, 2008
2007	$15.4B	$552M	27.8×	-0.7×	May 31, 2007
2006	$14B	$488M	28.6×	+1.1×	May 31, 2006
2005	$10.9B	$397M	27.5×	-14.9×	May 31, 2005
2004	$14.4B	$340M	42.4×	+5.7×	May 31, 2004
2003	$11.5B	$313M	36.7×	-15.5×	May 31, 2003
2002	$13B	$249M	52.2×	—	May 31, 2002


Zebra Technologies (ZBRA)	12.2×
Skyworks Solutions (SWKS)	11.9×
Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Leidos Holdings (LDOS)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	9.8×
Accenture (ACN)	9.6×
Strategy (MSTR)	9.2×
Gartner (IT)	8.8×
Fidelity National Information Services (FIS)	8.7×
DocuSign (DOCU)	8.0×
Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
Science Applications International (SAIC)	7.0×
Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×
IBM (IBM)	0.0×

P/FCF Ratio for Paychex (PAYX) 2002-2026

P/FCF Ratio daily chart for Paychex (PAYX)

Historical P/FCF Ratio for Paychex (PAYX) from 2002 to 2026

About P/FCF Ratio at Paychex (PAYX)

Paychex P/FCF Ratio by Year

Paychex P/FCF Ratio 2026: 15.8×

Paychex P/FCF Ratio 2025: 32.1×

Paychex P/FCF Ratio 2024: 25.6×

Paychex P/FCF Ratio 2023: 23.8×

Paychex P/FCF Ratio 2022: 32.5×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Paychex (PAYX) Key Financials