Paychex (NYSE:PAYX) Management Solutions Revenue rose from $2.96 billion in FY’20 to $3.44 billion in FY’22. Trefis expects the metric to grow to about $4 billion by FY’22.
Growth over the last two years was driven by a growing base of payroll clients and a strong U.S. job market. We expect future growth to be driven by price increases and the company’s move to diversify its client base to include larger businesses.
However, we think that the expected growth is fully priced into the stock. We value PAYX at about $110 per share, which is slightly below the current market price.
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 Month-to-date and year-to-date as of 7/1/2022
 Cumulative total returns since the end of 2016