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Paychex Inc (PAYX) — WACC Analysis

WACC Breakdown

Paychex Inc (PAYX) has a weighted average cost of capital (WACC) of 8.2%. The cost of equity is 8.7%, derived from a beta of 0.73 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.6%. The capital structure is 89.1% equity and 10.9% debt.

Interpretation

A WACC of 8.2% is moderate, reflecting the market's balanced risk assessment of Paychex Inc.

Investors can compare PAYX's WACC of 8.2% against industry peers to gauge its relative financing costs. A beta of 0.73 reflects the stock's volatility relative to the broader market.

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VALUATION

PAYX WACC: 8.24% for Paychex Inc

Current inputs imply a 8.69% cost of equity and a 5.84% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Paychex Inc Common Stock (PAYX) WACC Results
Weighted Average Cost of Capital
8.24%
Cost of Equity
8.69%
Risk-Free Rate5.22%
Beta0.73
Market Risk Premium4.23%
Cost of Debt
4.62%
Pre-Tax Cost of Debt5.84%
Tax Rate21.00%
Tax Shield1.23%
Capital Structure
Equity: 89.10%($37.25B)
Debt: 10.90%($4558.00M)
Equity Component
7.74%
89.10% × 8.69%
Debt Component
0.50%
10.90% × 4.62%

Paychex Inc (PAYX) WACC in context

Paychex Inc (PAYX) currently screens with an estimated WACC of 8.24%. That blends a 8.69% cost of equity, a 5.84% pre-tax cost of debt, and a 89.10% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What PAYX WACC implies

A 8.24% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PAYX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.73 and equity accounts for 89.10% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

PAYX WACC: 8.24% — Paychex Inc Cost of Capital (October 2026) | DeepViews