PYPL Valuation

PayPal Holdings Inc

Add to Watchlist

Advanced Chart

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.

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

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

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

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.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

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%