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PAYX
STRONG BUYPaychex Inc.
Technology
0.72
PEGY ratio
Rank #91
Why This Matters
This stock appears significantly undervalued relative to its growth and dividend yield. Strong projected growth of 30.2% annually over 5 years. Attractive dividend yield of 4.9%.
PAYX is trading at 21.4x earnings against 25.0% capped growth (actual 30.2%) + 4.9% yield, giving a PEGY of 0.72. The math suggests the stock is significantly undervalued relative to its growth and income profile.
~ Growth estimate uses historical CAGR (forward estimates unavailable)
- • Growth rate derived from historical CAGR — limited analyst coverage.
- • Growth rate capped at 25% for PEGY calculation (actual: 30.2%). Per Peter Lynch methodology, growth above 25% is rarely sustainable over 5 years.
Scan date: 2026-05-29
Valuation
21.4x
P/E Ratio
Growth
30.2%
5yr EPS
Income
4.9%
Div Yield
PEGY Components
PEGY Score0.72
Denominator29.9%
EPS (TTM)$4.53
Market Data
Price$96.98
ExchangeNASDAQ
S&P 500Nasdaq 100
What Changed
PEGY Score
0.72→0.72(-0.00)
Rank
#91→#91(0 positions)
vs 7 days ago
Portfolio Context
Founder does not hold this stock.
Not in your portfolio.
Sector: Technology
PEGY History — 90 days
Data: Yahoo Finance • Updated nightly 11 PM ET • For informational purposes only