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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