PYPL Relative Valuation
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. If the market price exceeds this fair value range, PYPL is overvalued; if below, it's undervalued.
Historical Valuation
PayPal Holdings Inc (PYPL) is now in the Fair zone, suggesting that its current forward PE ratio of 10.90 is considered Fairly compared with the five-year average of 24.08. The fair price of PayPal Holdings Inc (PYPL) is between 58.87 to 204.20 according to relative valuation methord.
Relative Value
Fair Zone
58.87-204.20
Current Price：61.73
Fair
11.00
PE
1Y
3Y
5Y
Trailing
Forward
7.95
EV/EBITDA
PayPal Holdings Inc. (PYPL) has a current EV/EBITDA of 7.95. The 5-year average EV/EBITDA is 17.42. The thresholds are as follows: Strongly Undervalued below -5.54, Undervalued between -5.54 and 5.94, Fairly Valued between 28.90 and 5.94, Overvalued between 28.90 and 40.38, and Strongly Overvalued above 40.38. The current Forward EV/EBITDA of 7.95 falls within the Historic Trend Line -Fairly Valued range.
8.87
EV/EBIT
PayPal Holdings Inc. (PYPL) has a current EV/EBIT of 8.87. The 5-year average EV/EBIT is 19.86. The thresholds are as follows: Strongly Undervalued below -6.18, Undervalued between -6.18 and 6.84, Fairly Valued between 32.88 and 6.84, Overvalued between 32.88 and 45.91, and Strongly Overvalued above 45.91. The current Forward EV/EBIT of 8.87 falls within the Historic Trend Line -Fairly Valued range.
1.65
PS
PayPal Holdings Inc. (PYPL) has a current PS of 1.65. The 5-year average PS is 4.46. The thresholds are as follows: Strongly Undervalued below -2.72, Undervalued between -2.72 and 0.87, Fairly Valued between 8.05 and 0.87, Overvalued between 8.05 and 11.65, and Strongly Overvalued above 11.65. The current Forward PS of 1.65 falls within the Historic Trend Line -Fairly Valued range.
6.65
P/OCF
PayPal Holdings Inc. (PYPL) has a current P/OCF of 6.65. The 5-year average P/OCF is 18.28. The thresholds are as follows: Strongly Undervalued below -7.28, Undervalued between -7.28 and 5.50, Fairly Valued between 31.06 and 5.50, Overvalued between 31.06 and 43.84, and Strongly Overvalued above 43.84. The current Forward P/OCF of 6.65 falls within the Historic Trend Line -Fairly Valued range.
7.25
P/FCF
PayPal Holdings Inc. (PYPL) has a current P/FCF of 7.25. The 5-year average P/FCF is 20.85. The thresholds are as follows: Strongly Undervalued below -9.41, Undervalued between -9.41 and 5.72, Fairly Valued between 35.97 and 5.72, Overvalued between 35.97 and 51.10, and Strongly Overvalued above 51.10. The current Forward P/FCF of 7.25 falls within the Historic Trend Line -Fairly Valued range.
PayPal Holdings Inc (PYPL) has a current Price-to-Book (P/B) ratio of 2.85. Compared to its 3-year average P/B ratio of 3.56 , the current P/B ratio is approximately -19.87% higher. Relative to its 5-year average P/B ratio of 6.31, the current P/B ratio is about -54.79% higher. PayPal Holdings Inc (PYPL) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 7.39%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.57% , the current FCF yield is about -100.00% lower.
2.88
P/B
Median3y
3.56
Median5y
6.31
9.71
FCF Yield
Median3y
7.39
Median5y
5.57
Competitors Valuation Multiple
The average P/S ratio for PYPL's competitors is 5.49, providing a benchmark for relative valuation. PayPal Holdings Inc Corp (PYPL) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 7.26%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PYPL decreased by 27.67% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 12.87 to 14.83.
The secondary factor is the Revenue Growth, contributed 7.26%to the performance.
Overall, the performance of PYPL in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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