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PAYX (Paychex) E10 : $3.67 (As of Aug. 2024)


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What is Paychex E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Paychex's adjusted earnings per share data for the three months ended in Aug. 2024 was $1.180. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.67 for the trailing ten years ended in Aug. 2024.

During the past 12 months, Paychex's average E10 Growth Rate was 9.90% per year. During the past 3 years, the average E10 Growth Rate was 13.10% per year. During the past 5 years, the average E10 Growth Rate was 12.10% per year. During the past 10 years, the average E10 Growth Rate was 8.90% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Paychex was 49.40% per year. The lowest was 5.10% per year. And the median was 13.20% per year.

As of today (2024-10-29), Paychex's current stock price is $141.87. Paychex's E10 for the quarter that ended in Aug. 2024 was $3.67. Paychex's Shiller PE Ratio of today is 38.66.

During the past 13 years, the highest Shiller PE Ratio of Paychex was 52.40. The lowest was 23.30. And the median was 35.37.


Paychex E10 Historical Data

The historical data trend for Paychex's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Paychex E10 Chart

Paychex Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.24 2.49 2.90 3.25 3.60

Paychex Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.34 3.39 3.51 3.60 3.67

Competitive Comparison of Paychex's E10

For the Software - Application subindustry, Paychex's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Paychex's Shiller PE Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Paychex's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Paychex's Shiller PE Ratio falls into.



Paychex E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Paychex's adjusted earnings per share data for the three months ended in Aug. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2024 (Change)*Current CPI (Aug. 2024)
=1.18/132.8158*132.8158
=1.180

Current CPI (Aug. 2024) = 132.8158.

Paychex Quarterly Data

per share eps CPI Adj_EPS
201411 0.470 99.635 0.627
201502 0.460 99.032 0.617
201505 0.440 100.333 0.582
201508 0.580 100.548 0.766
201511 0.520 100.135 0.690
201602 0.500 100.040 0.664
201605 0.490 101.355 0.642
201608 0.600 101.617 0.784
201611 0.560 101.829 0.730
201702 0.560 102.779 0.724
201705 0.540 103.256 0.695
201708 0.580 103.587 0.744
201711 0.550 104.072 0.702
201802 1.010 105.052 1.277
201805 0.630 106.148 0.788
201808 0.670 106.383 0.836
201811 0.650 106.338 0.812
201902 0.900 106.649 1.121
201905 0.640 108.048 0.787
201908 0.730 108.245 0.896
201911 0.720 108.519 0.881
202002 0.980 109.139 1.193
202005 0.610 108.175 0.749
202008 0.590 109.662 0.715
202011 0.750 109.793 0.907
202102 0.970 110.968 1.161
202105 0.730 113.576 0.854
202108 0.920 115.421 1.059
202111 0.910 117.269 1.031
202202 1.190 119.703 1.320
202205 0.820 123.323 0.883
202208 1.050 124.958 1.116
202211 0.990 125.607 1.047
202302 1.290 126.928 1.350
202305 0.970 128.314 1.004
202308 1.160 129.538 1.189
202311 1.080 129.548 1.107
202402 1.380 130.930 1.400
202405 1.050 132.509 1.052
202408 1.180 132.816 1.180

Add all the adjusted EPS together and divide 10 will get our e10.


Paychex  (NAS:PAYX) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Paychex's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=141.87/3.67
=38.66

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of Paychex was 52.40. The lowest was 23.30. And the median was 35.37.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Paychex E10 Related Terms

Thank you for viewing the detailed overview of Paychex's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Paychex Business Description

Traded in Other Exchanges
Address
911 Panorama Trail South, Rochester, NY, USA, 14625-2396
Paychex is a leading provider of payroll, human capital management, and insurance solutions servicing small and midsize clients primarily in the United States. The company, established in 1979, services over 745,000 clients and pays over 1 in 12 U.S. private-sector workers. Alongside its traditional payroll services, Paychex offers HCM solutions such as benefits administration and time and attendance software, as well as human resources outsourcing and insurance agency services.
Executives
Joseph Doody director CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701
Christopher C Simmons officer: VP, Controller & Treasurer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Flaschen David J S director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Mark Anthony Bottini officer: Sr. VP of Sales 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
John B Gibson officer: Sr. VP, Service CONVERGYS CORPORATION, 201 EAST FOURTH STREET, CINCINNATI OH 45202
Martin Mucci officer: Sr. Vice President 911 PANORAMA TRAIL S, ROCHESTER NY 14625
Joseph M Velli director
Michael E Gioja officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Efrain Rivera officer: Sr. Vice President, CFO 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Joseph M Tucci director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Elizabeth Roaldsen officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Karen E. Saunders-mcclendon officer: VP, Chief Human Resources Offi 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Theresa M. Payton director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Robert L. Schrader officer: VP/Controller 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Stephanie L Schaeffer officer: Chief Legal Officer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625