Intrinsic Valuation of: PAYX
Free Cash Flow Average and Growth over past 5Y Key Statistics
Year FCF FCF (FCF/Revenue)
2020 - - EPS (FY) 5 Market Cap $33B
2021 - - (-) P/E Ratio 20 Total Asset $17B
2022 $1B - (-) Net Income $2B Total Debt $5B
2023 $2B 7.4% (-1.1%) EBITDA $2B Total Liab $12B
2024 $2B 11.1% (5.4%) Opr Margin 39.62 Debt/Equity 1.10
2025 $2B -1.6% (-6.7%) PreTax Margin 37.73 BV/Share -7
5Y Average FCF $2B 6.2% (-0.8%)
Overall Market Assumptions:
Assumptions: P/E for No-Growth Company: 7.0
Perpetual Growth Rate (g): 2.48% Historical US Bond Yield: 4.40%
Discount Rate (WACC): 8.17% Current US Bond Yield: 3.48%
Forcasting Future Free Cash Flow for next 6Y Modified Benjamin Graham's Intrinsic Value
Year FCF Projection (6.2%)
2026 $2B MBG Intrinsic Value $41
2027 $2B
2028 $2B
2029 $2B
2030 $2B
2031 $2B
Terminal Value $39B Net Worth/Share $12
DCF Valuation DCF Valuation "What If" Scenario Table
Enterprise Value $33B Growth Rate
(+) Cash & Cash Equivalents $2B $85 1.5% 2.0% 2.5% 3.0% 3.5%
(-) Total Debt $5B WACC 6.5% 102 112 124 140 161
Equity Value $30B 7.4% 85 92 99 109 121
Shares Outstanding 358,290,881 8.3% 72 77 82 89 97
9.3% 63 66 70 75 80
DCF Intrinsic Value $85 10.2% 55 58 61 64 68
Analyzed by QuantJuice (2025)