NASDAQ
PYPL
Last Price
US $45.47
KEY FIGURES
MKT CAP
$39.1B
EPS
TTM
$5.54
PEG
TTM
0.43x
P/E
TTM
8.25x
P/S
TTM
1.18x
YIELD
0.95%
GROWTH
Revenue Y/Y
9.11%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $45.47
66.35%
Default assumptions
EBITDA Multiple
Fair Value
Market $45.47
24.06%
Default assumptions
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
PayPal Holdings, Inc. cash flow to debt ratio of 64.24% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
PayPal Holdings, Inc.'s free cash flow has decreased -17.78% from $6.77G last year to $5.56G, signaling decreasing performance
Financial stability - Healthy debt to equity ratio.
PayPal Holdings, Inc.'s debt to equity ratio is 0.47, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
PayPal Holdings, Inc.'s debt has decreased relative to shareholder equity from 0.48 last year to 0.47 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
PayPal Holdings, Inc. has a net debt to EBITDA ratio of 0.25x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
PayPal Holdings, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
PayPal Holdings, Inc.'s profit margin has increased (14.99%) in the last year from 13.04% to 15.00%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
PayPal Holdings, Inc.'s short-term assets of $59.76G exceed its short-term liabilities of $46.44G
Increasing performance - ROA.
PayPal Holdings, Inc.'s return on assets of 6.28% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
PayPal Holdings, Inc.'s return on equity of 25.08%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
PayPal Holdings, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
PayPal Holdings, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
PayPal Holdings, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
PayPal Holdings, Inc. has a free cash flow yield of 14.24%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
PayPal Holdings, Inc.'s yearly earnings has increased 26.19% since last year from $4.15G to $5.23G, signaling increasing performance
Increasing performance - Healthy revenue growth.
PayPal Holdings, Inc.'s yearly revenue has increased 4.85% since last year from $31.80G to $33.34G, signaling increasing performance
Increasing performance - ROIC.
ROIC 15.22% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
PayPal Holdings, Inc.'s 3-year revenue CAGR of 6.43% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
PayPal Holdings, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
PayPal Holdings, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
PayPal Holdings, Inc. is undervalued relative to its fair value price of 75.64 based on Discounted Cash Flow model
Undervalued - Earnings yield.
PayPal Holdings, Inc. has an earnings yield of 12.51%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Undervalued - EBITDA valuation.
PayPal Holdings, Inc. is undervalued relative to its fair value price of 56.41 based on EBITDA multiple model
Undervalued - EV/EBITDA.
PayPal Holdings, Inc. has an EV/EBITDA ratio of 5.55x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
PayPal Holdings, Inc. has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
PayPal Holdings, Inc. has a price-to-book ratio of 2.02x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
PayPal Holdings, Inc. has a price-to-sales ratio of 1.16x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
25.08%
Return on equity
ROIC: 15.22%
Valuation History
8.3X
Price to Earnings
EV/EBITDA: 5.5X
Cash flow
Profit margin
3.55%
(FY vs FY)
Cash flow Y/Y
2.21%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.