PAYXNEUTRAL

PAYX PEG Ratio Analysis

0.50x

Updated 1395h ago·SEC filings & market data

Key Takeaway

The PEG ratio divides a stock’s price-to-earnings multiple by its expected earnings growth rate, so 0.50x means the price paid for each unit of expected growth is half the growth rate itself.

Sector Performance

36th percentile

PAYX

0.50x

Sector Median

0.73x

Sector Avg

2.54x

Prior Period

2.38x(May 2026)

↑ Improving
📊

Deep Analysis

The PEG ratio divides a stock’s price-to-earnings multiple by its expected earnings growth rate, so 0.50x means the price paid for each unit of expected growth is half the growth rate itself.

That level sits below the sector median of 0.81x, placing PAYX in the 36th percentile among peers, meaning it is cheaper relative to growth than most sector companies. The trend is not assessable: year-over-year change is N/A and quarter-over-quarter change is N/A, with only the current 0.50x value available. With a low ratio but no trend direction, the stock offers a value opportunity if growth holds, yet the lack of historical movement adds uncertainty. This supports the overall NEUTRAL verdict because the low PEG suggests undervaluation, but the absence of trend data prevents a stronger bullish conclusion. The metric neither contradicts nor confirms the neutral stance on its own.

Frequently Asked Questions

What does the PEG Ratio tell investors about PAYX?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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PAYX

0.50x

Sector Median

0.73x

Sector Avg

2.54x

How PAYX's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.