PAYXNEUTRAL

EV/EBITDA

24.2x

Updated 1926h ago

Sector Performance

82th percentile

PAYX

24.2x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

PAYX's current EV/EBITDA of 24.2x means that its enterprise value (total company worth including debt) is 24.2 times its earnings before interest, taxes, depreciation, and amortization — a measure of operating profitability.

This multiple is well above the sector median of 14.5x, placing PAYX in the 86th percentile among its peers, indicating investors are paying a premium for its earnings stream. The metric has been perfectly stable over the past eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%, reflecting no movement in valuation relative to EBITDA. A high but stable EV/EBITDA suggests the stock carries a consistent premium that may limit upside potential if growth or profitability fails to meet expectations, posing valuation risk rather than clear opportunity. This elevated level and flat trend directly contradict any bullish stance but do not signal an imminent decline, aligning with the overall NEUTRAL verdict — the stock appears fairly valued at a premium without catalysts for re-rating.

Frequently Asked Questions

What does the EV/EBITDA tell investors about PAYX?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are PAYX's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.