PayPal Holdings Inc
Exchange: NASDAQSector: Financial ServicesIndustry: Credit Services
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.
Did you know?
Price sits at 22% of its 52-week range.
Current Price
$47.51
+5.02%GoodMoat Value
$137.74
189.9% undervaluedProfile
Valuation (TTM)
Market Cap$44.45B
P/E8.49
EV$33.66B
P/B2.19
Shares Out935.65M
P/Sales1.34
Revenue$33.17B
EV/EBITDA4.90
PayPal Holdings Inc (PYPL) Stock Analysis
GoodMoat Analysis
PayPal is a dominant digital payments platform with a significant user network and brand, but faces slowing growth and competitive pressures. Its valuation appears deeply undervervalued based on the GoodMoat target, presenting a potential opportunity for value investors.
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PayPal operates a leading digital payments platform, facilitating transactions for consumers and merchants globally. Applying the GoodMoat framework, the company exhibits several moat characteristics, including a strong network effect from its large user base, significant brand recognition, and high switching costs for merchants integrated into its system. This likely yields a Moat Score of 5 or higher, allowing it to proceed to the valuation gate. However, quality indicators are mixed; while it shows a high ROE of 25.8% and a robust free cash flow yield of 13.3%, its revenue growth has slowed to 3.7% YoY, which is a concern for a growth-oriented platform. The valuation assessment is the most compelling aspect. The stock trades at a P/E of just 8.0x, which is low for a profitable financial technology company. More strikingly, the current price of $45.41 is approximately 67% below the GoodMoat target of $137.74, indicating a margin of safety well over the 40% threshold for being 'Deeply Undervalued' according to the framework's DCF bands. This significant discount suggests the market may be overly pessimistic about PayPal's challenges. For a value investor, this creates a scenario where a high-quality business with a durable moat is trading at a deeply favourable price, making it worthy of deeper investigation into its growth trajectory and competitive positioning to understand the risks behind the discount. Analysis based on data as of 2024-05-15.
Market Cap$44.45B
Current Price$47.51
P/E Ratio8.49
Forward P/E—
PEG Ratio0.23
EPS$5.41
Book Value$21.65
P/B Ratio2.19
PYPL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 8.7% FCF growth (CAGR)
Cash vs Debt
Net Debt: 1.9B
Revenue
17.8B
FY19
21.5B
FY20
25.4B
FY21
27.5B
FY22
29.8B
FY23
31.8B
FY24
33.2B
FY25
Net Income
2.5B
FY19
4.2B
FY20
4.2B
FY21
2.4B
FY22
4.2B
FY23
4.1B
FY24
5.2B
FY25
PYPL 52-Week Range
$38.96
$77.81
50-Day MA: $44.51200-Day MA: $60.74
Did you know?
Trading 190% below its estimated fair value of $137.74.
PayPal Holdings Inc (PYPL) Financial Summary
PayPal Holdings Inc (PYPL) is a Financial Services company in the Credit Services industry, listed on NASDAQ. The stock currently trades at $47.51 with a market capitalization of $44.45B.
Key valuation metrics include a P/E ratio of 8.49, price-to-book ratio of 2.19, and EPS of $5.41. The company reports a profit margin of 15.8% and return on equity of 25.8%.
PYPL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $44.45B |
| P/E Ratio | 8.49 |
| EPS | $5.41 |
| P/B Ratio | 2.19 |
| P/S Ratio | 1.34 |
| EV/EBITDA | 4.90 |
| Dividend Yield | 0.29% |
| Profit Margin | 15.8% |
| Return on Equity | 25.8% |
| Debt/Equity | 0.49 |
PYPL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $17.77B | $2.46B |
| FY20 | $21.45B | $4.20B |
| FY21 | $25.37B | $4.17B |
| FY22 | $27.52B | $2.42B |
| FY23 | $29.77B | $4.25B |
| FY24 | $31.80B | $4.15B |
| FY25 | $33.17B | $5.23B |
PayPal Holdings Inc (PYPL) Valuation
Based on GoodMoat's DCF model, PayPal Holdings Inc has a fair value estimate of $137.74. At the current price of $47.51, the stock appears 65.5% undervalued relative to our intrinsic value estimate.
PYPL Quality Indicators
PayPal Holdings Inc maintains a profit margin of 15.8% and an operating margin of 18.3%. Return on equity stands at 25.8%. The current ratio is 1.29. Debt-to-equity ratio is 0.49.
About PayPal Holdings Inc
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.
PYPL Free Cash Flow
PayPal Holdings Inc generated $5.57B in trailing twelve-month free cash flow, representing an FCF yield of 12.52%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
PYPL Shares Outstanding
PayPal Holdings Inc has 0.94 billion shares outstanding at a share price of $47.51, giving it a market capitalization of $44.45B.
PYPL Recent Insider Trades
Recent insider transactions at PayPal Holdings Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Natali Chris (SVP, Chief Accounting Officer) | SELL | 2,208 | $98763.84 |
| Kereere Suzan (President, Global Markets) | SELL | 4,000 | $180733.20 |
| Keller Frank (EVP, GM, Large Ent & Mer Plat.) | SELL | 8,901 | $402249.54 |