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PYPL Valuation

PayPal Holdings Inc
$
69.960
+0.73(1.054%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

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.
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Historical Valuation

PayPal Holdings Inc (PYPL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 12.86 is considered Undervalued compared with the five-year average of 26.23. The fair price of PayPal Holdings Inc (PYPL) is between 69.86 to 213.00 according to relative valuation methord. Compared to the current price of 69.23 USD , PayPal Holdings Inc is Undervalued By 0.9%.
Relative Value
Fair Zone
69.86-213.00
Current Price:69.23
0.9%
Undervalued
12.86
PE
1Y
3Y
5Y
Trailing
Forward
9.35
EV/EBITDA
PayPal Holdings Inc. (PYPL) has a current EV/EBITDA of 9.35. The 5-year average EV/EBITDA is 18.90. The thresholds are as follows: Strongly Undervalued below -4.80, Undervalued between -4.80 and 7.05, Fairly Valued between 30.76 and 7.05, Overvalued between 30.76 and 42.61, and Strongly Overvalued above 42.61. The current Forward EV/EBITDA of 9.35 falls within the Historic Trend Line -Fairly Valued range.
10.61
EV/EBIT
PayPal Holdings Inc. (PYPL) has a current EV/EBIT of 10.61. The 5-year average EV/EBIT is 21.54. The thresholds are as follows: Strongly Undervalued below -5.27, Undervalued between -5.27 and 8.13, Fairly Valued between 34.94 and 8.13, Overvalued between 34.94 and 48.34, and Strongly Overvalued above 48.34. The current Forward EV/EBIT of 10.61 falls within the Historic Trend Line -Fairly Valued range.
1.95
PS
PayPal Holdings Inc. (PYPL) has a current PS of 1.95. The 5-year average PS is 4.94. The thresholds are as follows: Strongly Undervalued below -2.51, Undervalued between -2.51 and 1.21, Fairly Valued between 8.67 and 1.21, Overvalued between 8.67 and 12.39, and Strongly Overvalued above 12.39. The current Forward PS of 1.95 falls within the Historic Trend Line -Fairly Valued range.
8.36
P/OCF
PayPal Holdings Inc. (PYPL) has a current P/OCF of 8.36. The 5-year average P/OCF is 20.47. The thresholds are as follows: Strongly Undervalued below -7.33, Undervalued between -7.33 and 6.57, Fairly Valued between 34.37 and 6.57, Overvalued between 34.37 and 48.26, and Strongly Overvalued above 48.26. The current Forward P/OCF of 8.36 falls within the Historic Trend Line -Fairly Valued range.
8.92
P/FCF
PayPal Holdings Inc. (PYPL) has a current P/FCF of 8.92. The 5-year average P/FCF is 22.85. The thresholds are as follows: Strongly Undervalued below -8.08, Undervalued between -8.08 and 7.38, Fairly Valued between 38.31 and 7.38, Overvalued between 38.31 and 53.78, and Strongly Overvalued above 53.78. The current Forward P/FCF of 8.92 falls within the Historic Trend Line -Fairly Valued range.
PayPal Holdings Inc (PYPL) has a current Price-to-Book (P/B) ratio of 3.29. Compared to its 3-year average P/B ratio of 3.75 , the current P/B ratio is approximately -12.18% higher. Relative to its 5-year average P/B ratio of 6.89, the current P/B ratio is about -52.25% higher. PayPal Holdings Inc (PYPL) has a Forward Free Cash Flow (FCF) yield of approximately 8.00%. Compared to its 3-year average FCF yield of 7.00%, the current FCF yield is approximately 14.30% lower. Relative to its 5-year average FCF yield of 5.17% , the current FCF yield is about 54.72% lower.
3.29
P/B
Median3y
3.75
Median5y
6.89
8.00
FCF Yield
Median3y
7.00
Median5y
5.17
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Competitors Valuation Multiple

The average P/S ratio for PYPL's competitors is 4.25, providing a benchmark for relative valuation. PayPal Holdings Inc Corp (PYPL) exhibits a P/S ratio of 1.95, which is -54.16% above the industry average. Given its robust revenue growth of 5.11%, this premium appears unsustainable.
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Performance Decomposition

1Y
3Y
5Y
Market capitalization of PYPL decreased by 4.42% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 14.31 to 15.21.
The secondary factor is the Revenue Growth, contributed 5.11%to the performance.
Overall, the performance of PYPL in the past 1 year is driven by Margin Expansion. Which is more sustainable.
5.11%
7.89B → 8.29B
Revenue Growth
+
6.29%
14.31 → 15.21
Margin Expansion
+
-15.82%
17.62 → 14.84
P/E Change
=
-4.42%
72.43 → 69.23
Mkt Cap Growth

FAQ

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Is PayPal Holdings Inc (PYPL) currently overvalued or undervalued?

PayPal Holdings Inc (PYPL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 12.86 is considered Undervalued compared with the five-year average of 26.23. The fair price of PayPal Holdings Inc (PYPL) is between 69.86 to 213.00 according to relative valuation methord. Compared to the current price of 69.23 USD , PayPal Holdings Inc is Undervalued By 0.90% .
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What is PayPal Holdings Inc (PYPL) fair value?

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

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What is the current P/B ratio for PayPal Holdings Inc (PYPL) as of Aug 18 2025?

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What is the current FCF Yield for PayPal Holdings Inc (PYPL) as of Aug 18 2025?

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What is the current Forward P/E ratio for PayPal Holdings Inc (PYPL) as of Aug 18 2025?

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What is the current Forward P/S ratio for PayPal Holdings Inc (PYPL) as of Aug 18 2025?