Company Description:
Paychex, Inc. is a provider of human capital management (“HCM”) solutions for payroll, benefits, and human resource insurance services for small- to medium-sized businesses, with an outreach to nearly 700,000 clients. The company offers a wide array of services: from payroll processing and tax administration to regulatory compliance and HR solutions.
Valuation
The payroll processing space is fairly small, with ADP being the only other major competitor. We keep in mind our current P/E multiple (on 2020 earnings) of 32x for ADP when we conduct the valuation for Paychex, in addition to applying