Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Monday, November 13, 2023

Paychex Valuation

 


Paychex Inc, the American provider of human resource, payroll and benefits outsourcing services is undervalued, according to Wolfteam Ltd.'s revenue and profitability projections.

With 5.01 billion USD in revenue, growing at 8.57 % with net profit margin of 31.10 % for 2022, Paychex Inc's intrinsic value is 51 billion USD compared with Paychex Inc's current market capitalization of 41.70 billion USD.

Add to that a dividend yield of 3.08 % for 2022 and Paychex Inc's revenue growth and profitability simply speak for a higher valuation, according to Wolfteam Ltd. One of the reasons Paychex Inc's is not trading at higher Price/Earnings, Price/Sales, Price/Book ratios is that apparently market participants regard Paychex Inc as a technology outsourcing company, not as a purely technology, software company.

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