Despite its impressive fundamentals, NASDAQ:PYPL remains undervalued.

Discover PAYPAL HOLDINGS INC (NASDAQ:PYPL)—an undervalued stock our stock screener has picked out. NASDAQ:PYPL demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Assessing Valuation Metrics for NASDAQ:PYPL

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:PYPL boasts a 7 out of 10:

• Based on the Price/Earnings ratio of 11.57, the valuation of PYPL can be described as reasonable.
• Compared to the rest of the industry, the Price/Earnings ratio of PYPL indicates a somewhat cheap valuation: PYPL is cheaper than 71.84% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 26.18. PYPL is valued rather cheaply when compared to this.
• PYPL is valuated reasonably with a Price/Forward Earnings ratio of 10.56.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PYPL indicates a somewhat cheap valuation: PYPL is cheaper than 70.87% of the companies listed in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 21.51. PYPL is valued rather cheaply when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PYPL indicates a rather cheap valuation: PYPL is cheaper than 82.52% of the companies listed in the same industry.
• 67.96% of the companies in the same industry are more expensive than PYPL, based on the Price/Free Cash Flow ratio.
• PYPL has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Profitability for NASDAQ:PYPL?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PYPL scores a 8 out of 10:

• PYPL's Return On Assets of 5.17% is amongst the best of the industry. PYPL outperforms 81.55% of its industry peers.
• The Return On Equity of PYPL (20.17%) is better than 82.52% of its industry peers.
• With an excellent Return On Invested Capital value of 11.03%, PYPL belongs to the best of the industry, outperforming 86.41% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for PYPL is above the industry average of 7.27%.
• The last Return On Invested Capital (11.03%) for PYPL is above the 3 year average (10.00%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 14.26%, PYPL is in the better half of the industry, outperforming 66.99% of the companies in the same industry.
• PYPL has a better Operating Margin (16.61%) than 60.19% of its industry peers.
• PYPL has a Gross Margin of 39.59%. This is in the better half of the industry: PYPL outperforms 64.08% of its industry peers.

Health Analysis for NASDAQ:PYPL

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:PYPL has earned a 6 out of 10:

• PYPL has a Altman-Z score of 1.79. This is in the better half of the industry: PYPL outperforms 71.84% of its industry peers.
• PYPL has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as PYPL would need 2.59 years to pay back of all of its debts.
• PYPL's Debt to FCF ratio of 2.59 is fine compared to the rest of the industry. PYPL outperforms 71.84% of its industry peers.
• A Debt/Equity ratio of 0.46 indicates that PYPL is not too dependend on debt financing.
• PYPL has a Quick ratio of 1.29. This is in the better half of the industry: PYPL outperforms 60.19% of its industry peers.

Growth Examination for NASDAQ:PYPL

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PYPL has received a 7 out of 10:

• The Earnings Per Share has grown by an impressive 23.73% over the past year.
• PYPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.12% yearly.
• PYPL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.19%.
• Measured over the past years, PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 14.02% on average per year.
• The Earnings Per Share is expected to grow by 15.88% on average over the next years. This is quite good.
• Based on estimates for the next years, PYPL will show a quite strong growth in Revenue. The Revenue will grow by 11.06% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of PYPL for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.