PYPL PE Ratio & Valuation,Is PYPL Overvalued

Historical Valuation

PayPal Holdings Inc (PYPL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.38 is considered Undervalued compared with the five-year average of 23.03. The fair price of PayPal Holdings Inc (PYPL) is between 56.17 to 184.88 according to relative valuation methord. Compared to the current price of 54.08 USD , PayPal Holdings Inc is Undervalued By 3.72%.

Relative Value

Fair Zone

56.17-184.88

Current Price：54.08

3.72%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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PayPal Holdings Inc (PYPL) has a current Price-to-Book (P/B) ratio of 2.71. Compared to its 3-year average P/B ratio of 3.51 , the current P/B ratio is approximately -22.77% higher. Relative to its 5-year average P/B ratio of 6.02, the current P/B ratio is about -54.97% higher. PayPal Holdings Inc (PYPL) has a Forward Free Cash Flow (FCF) yield of approximately 10.23%. Compared to its 3-year average FCF yield of 7.54%, the current FCF yield is approximately 35.59% lower. Relative to its 5-year average FCF yield of 5.75% , the current FCF yield is about 77.77% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for PYPL competitors is 3.57, providing a benchmark for relative valuation. PayPal Holdings Inc Corp (PYPL.O) exhibits a P/S ratio of 1.57, which is -56.15% above the industry average. Given its robust revenue growth of 7.26%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of PYPL increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00%to the performance.

Overall, the performance of PYPL in the past 1 year is driven by Unknown.

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Frequently Asked Questions

Is PYPL currently overvalued or undervalued?

What is PayPal Holdings Inc (PYPL) fair value?

PYPL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of PayPal Holdings Inc (PYPL) is between 56.17 to 184.88 according to relative valuation methord.

How does PYPL's valuation metrics compare to the industry average?

The average P/S ratio for PYPL's competitors is 3.57, providing a benchmark for relative valuation. PayPal Holdings Inc Corp (PYPL) exhibits a P/S ratio of 1.57, which is -56.15% above the industry average. Given its robust revenue growth of 7.26%, this premium appears unsustainable.

What is the current P/B ratio for PayPal Holdings Inc (PYPL) as of Jan 29 2026?

As of Jan 29 2026, PayPal Holdings Inc (PYPL) has a P/B ratio of 2.71. This indicates that the market values PYPL at 2.71 times its book value.

What is the current FCF Yield for PayPal Holdings Inc (PYPL) as of Jan 29 2026?

As of Jan 29 2026, PayPal Holdings Inc (PYPL) has a FCF Yield of 10.23%. This means that for every dollar of PayPal Holdings Inc’s market capitalization, the company generates 10.23 cents in free cash flow.

What is the current Forward P/E ratio for PayPal Holdings Inc (PYPL) as of Jan 29 2026?

As of Jan 29 2026, PayPal Holdings Inc (PYPL) has a Forward P/E ratio of 10.38. This means the market is willing to pay $10.38 for every dollar of PayPal Holdings Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for PayPal Holdings Inc (PYPL) as of Jan 29 2026?

As of Jan 29 2026, PayPal Holdings Inc (PYPL) has a Forward P/S ratio of 1.57. This means the market is valuing PYPL at $1.57 for every dollar of expected revenue over the next 12 months.

PYPL Valuation