PAYX — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($95.23)
DCF	$207.45	+117.8%
Graham Number	$32.79	-65.6%
Reverse DCF	—	implied g: 5.7%
DDM	$88.99	-6.6%
EV/EBITDA	$94.25	-1.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.06B

Near-term growth (yrs 1–5)(%)Rev: 18.3% / EPS: -3.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.01%

Computed WACC: 8.01%

Cost of equity (Re)9.19%(Rf 4.30% + β 0.89 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)87.16%

Debt weight (D/V)12.84%

Results

Intrinsic Value / share$252.36

Current Price$95.23

Upside / Downside+165.0%

Net Debt (used)$3.51B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	10.3%	14.3%	18.3%	22.3%	26.3%
7.0%	$225.33	$268.70	$318.42	$375.15	$439.62
8.0%	$179.08	$213.49	$252.89	$297.82	$348.85
9.0%	$147.26	$175.50	$207.83	$244.65	$286.45
10.0%	$124.07	$147.85	$175.02	$205.96	$241.06
11.0%	$106.47	$126.85	$150.13	$176.62	$206.64

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $4.42

Book Value / share($)Yahoo: $10.81

Results

Graham Number$32.79

Current Price$95.23

Margin of Safety-65.6%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.01%

Terminal growth rate(%)

Computed WACC: 8.01%

Cost of equity (Re)9.19%(Rf 4.30% + β 0.89 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)87.16%

Debt weight (D/V)12.84%

Results

Current Price$95.23

Implied Near-term FCF Growth2.9%

Historical Revenue Growth18.3%

Historical Earnings Growth-3.5%

Base FCF (TTM)$2.06B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $4.32

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$88.99

Current Price$95.23

Upside / Downside-6.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.87B

Target EV/EBITDA multipleCurrent: 13.0×

Net Debt($B)Default: $3.51B

Results

Implied Equity Value / share$94.25

Current Price$95.23

Upside / Downside-1.0%

Implied EV$37.35B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$1.51B	$2.51B	$3.51B	$4.51B	$5.51B
9.0x	$67.87	$65.08	$62.29	$59.51	$56.72
11.0x	$83.84	$81.06	$78.27	$75.48	$72.70
13.0x	$99.82	$97.03	$94.25	$91.46	$88.67
15.0x	$115.79	$113.01	$110.22	$107.44	$104.65
17.0x	$131.77	$128.98	$126.20	$123.41	$120.63

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