PAYX

Potentially Overvalued

Paychex, Inc. — PEG Ratio Analysis

2.55

PEG Ratio

2.55

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$98.24

TTM EPS

$4.53

P/E Ratio

21.69

Growth Rate

8.5%

5-Year EPS CAGR

Sector

Industrials

Staffing & Employment Services

Calculated

6/22/2026

11:14:15 AM

Peer Comparison

Sample Size

1 peers

Industry Median PEG

0.68

25th Percentile

0.68

75th Percentile

0.68

PAYX PEG (2.55) vs Industry Median (0.68): 277% premium

Symbol	Company	PEG	P/E	Growth	vs PAYX
KFY	Korn Ferry	0.68	13.3	19.7%	-74%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.