PAYPAL HOLDINGS INC (PYPL) Fundamental Analysis & Valuation

NASDAQ:PYPL • US70450Y1038

Current stock price

51.43 USD
-0.03 (-0.06%)
Last:

This PYPL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. PYPL Profitability Analysis

1.1 Basic Checks

  • In the past year PYPL was profitable.
  • In the past year PYPL had a positive cash flow from operations.
  • In the past 5 years PYPL has always been profitable.
  • In the past 5 years PYPL always reported a positive cash flow from operatings.
PYPL Yearly Net Income VS EBIT VS OCF VS FCFPYPL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • With an excellent Return On Assets value of 6.53%, PYPL belongs to the best of the industry, outperforming 83.84% of the companies in the same industry.
  • With an excellent Return On Equity value of 25.83%, PYPL belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 15.26%, PYPL belongs to the top of the industry, outperforming 92.93% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for PYPL is significantly above the industry average of 8.00%.
  • The last Return On Invested Capital (15.26%) for PYPL is above the 3 year average (13.68%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.53%
ROE 25.83%
ROIC 15.26%
ROA(3y)5.59%
ROA(5y)5.07%
ROE(3y)22.11%
ROE(5y)19.49%
ROIC(3y)13.68%
ROIC(5y)12.27%
PYPL Yearly ROA, ROE, ROICPYPL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • The Profit Margin of PYPL (15.78%) is better than 64.65% of its industry peers.
  • In the last couple of years the Profit Margin of PYPL has declined.
  • With a decent Operating Margin value of 19.28%, PYPL is doing good in the industry, outperforming 68.69% of the companies in the same industry.
  • In the last couple of years the Operating Margin of PYPL has grown nicely.
  • With a decent Gross Margin value of 41.48%, PYPL is doing good in the industry, outperforming 62.63% of the companies in the same industry.
  • PYPL's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 19.28%
PM (TTM) 15.78%
GM 41.48%
OM growth 3Y9.47%
OM growth 5Y3.83%
PM growth 3Y21.52%
PM growth 5Y-4.24%
GM growth 3Y-0.68%
GM growth 5Y-2.31%
PYPL Yearly Profit, Operating, Gross MarginsPYPL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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6

2. PYPL Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PYPL is creating value.
  • The number of shares outstanding for PYPL has been reduced compared to 1 year ago.
  • The number of shares outstanding for PYPL has been reduced compared to 5 years ago.
  • Compared to 1 year ago, PYPL has a worse debt to assets ratio.
PYPL Yearly Shares OutstandingPYPL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
PYPL Yearly Total Debt VS Total AssetsPYPL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.2 Solvency

  • An Altman-Z score of 1.91 indicates that PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • PYPL has a Altman-Z score of 1.91. This is in the better half of the industry: PYPL outperforms 76.77% of its industry peers.
  • PYPL has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as PYPL would need 2.05 years to pay back of all of its debts.
  • The Debt to FCF ratio of PYPL (2.05) is better than 72.73% of its industry peers.
  • A Debt/Equity ratio of 0.49 indicates that PYPL is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.49, PYPL is in line with its industry, outperforming 58.59% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.05
Altman-Z 1.91
ROIC/WACC1.97
WACC7.73%
PYPL Yearly LT Debt VS Equity VS FCFPYPL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • PYPL has a Current Ratio of 1.29. This is a normal value and indicates that PYPL is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of PYPL (1.29) is better than 62.63% of its industry peers.
  • A Quick Ratio of 1.29 indicates that PYPL should not have too much problems paying its short term obligations.
  • PYPL's Quick ratio of 1.29 is fine compared to the rest of the industry. PYPL outperforms 65.66% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.29
PYPL Yearly Current Assets VS Current LiabilitesPYPL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. PYPL Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.43% over the past year.
  • Measured over the past 5 years, PYPL shows a small growth in Earnings Per Share. The EPS has been growing by 5.53% on average per year.
  • The Revenue has been growing slightly by 4.32% in the past year.
  • Measured over the past years, PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 9.11% on average per year.
EPS 1Y (TTM)6.43%
EPS 3Y8.67%
EPS 5Y5.53%
EPS Q2Q%3.36%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%

3.2 Future

  • The Earnings Per Share is expected to grow by 12.78% on average over the next years. This is quite good.
  • Based on estimates for the next years, PYPL will show a small growth in Revenue. The Revenue will grow by 6.93% on average per year.
EPS Next Y2.24%
EPS Next 2Y5.7%
EPS Next 3Y7.37%
EPS Next 5Y12.78%
Revenue Next Year2.37%
Revenue Next 2Y3.3%
Revenue Next 3Y3.84%
Revenue Next 5Y6.93%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
PYPL Yearly Revenue VS EstimatesPYPL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B 50B
PYPL Yearly EPS VS EstimatesPYPL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

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7

4. PYPL Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.70, which indicates a very decent valuation of PYPL.
  • 61.62% of the companies in the same industry are more expensive than PYPL, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of PYPL to the average of the S&P500 Index (27.95), we can say PYPL is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 9.49, the valuation of PYPL can be described as very reasonable.
  • 61.62% of the companies in the same industry are more expensive than PYPL, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.68, PYPL is valued rather cheaply.
Industry RankSector Rank
PE 9.7
Fwd PE 9.49
PYPL Price Earnings VS Forward Price EarningsPYPL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • PYPL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PYPL is cheaper than 89.90% of the companies in the same industry.
  • 80.81% of the companies in the same industry are more expensive than PYPL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 8.32
EV/EBITDA 6.1
PYPL Per share dataPYPL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of PYPL may justify a higher PE ratio.
PEG (NY)4.33
PEG (5Y)1.76
EPS Next 2Y5.7%
EPS Next 3Y7.37%

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3

5. PYPL Dividend Analysis

5.1 Amount

  • PYPL has a Yearly Dividend Yield of 1.12%.
  • Compared to an average industry Dividend Yield of 1.82, PYPL pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.81, PYPL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.12%

5.2 History

  • PYPL is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
PYPL Yearly Dividends per sharePYPL Yearly Dividends per shareYearly Dividends per share 2025 2026 0.05 0.1

5.3 Sustainability

  • PYPL pays out 2.48% of its income as dividend. This is a sustainable payout ratio.
DP2.48%
EPS Next 2Y5.7%
EPS Next 3Y7.37%
PYPL Yearly Income VS Free CF VS DividendPYPL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
PYPL Dividend Payout.PYPL Dividend Payout, showing the Payout Ratio.PYPL Dividend Payout.PayoutRetained Earnings

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PYPL Fundamentals: All Metrics, Ratios and Statistics

PAYPAL HOLDINGS INC

NASDAQ:PYPL (4/21/2026, 11:35:09 AM)

51.43

-0.03 (-0.06%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners82.21%
Inst Owner Change0.43%
Ins Owners0.1%
Ins Owner Change0.11%
Market Cap46.27B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts66.4
Price Target51.32 (-0.21%)
Short Float %5%
Short Ratio1.79
Dividend
Industry RankSector Rank
Dividend Yield 1.12%
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DP2.48%
Div Incr Years0
Div Non Decr Years1
Ex-Date03-04
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.63%
Min EPS beat(2)-6.12%
Max EPS beat(2)9.38%
EPS beat(4)3
Avg EPS beat(4)5.34%
Min EPS beat(4)-6.12%
Max EPS beat(4)12.26%
EPS beat(8)7
Avg EPS beat(8)8.3%
EPS beat(12)10
Avg EPS beat(12)6.57%
EPS beat(16)13
Avg EPS beat(16)5.95%
Revenue beat(2)1
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)0.26%
Revenue beat(4)2
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-1.12%
Revenue beat(12)3
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)-1.21%
PT rev (1m)-1.11%
PT rev (3m)-33.33%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-8.03%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-7.93%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-3.22%
Valuation
Industry RankSector Rank
PE 9.7
Fwd PE 9.49
P/S 1.39
P/FCF 8.32
P/OCF 7.21
P/B 2.28
P/tB 5.04
EV/EBITDA 6.1
EPS(TTM)5.3
EY10.31%
EPS(NY)5.42
Fwd EY10.54%
FCF(TTM)6.18
FCFY12.03%
OCF(TTM)7.13
OCFY13.87%
SpS36.87
BVpS22.51
TBVpS10.21
PEG (NY)4.33
PEG (5Y)1.76
Graham Number51.8161 (0.75%)
Profitability
Industry RankSector Rank
ROA 6.53%
ROE 25.83%
ROCE 18.96%
ROIC 15.26%
ROICexc 22.09%
ROICexgc 42.08%
OM 19.28%
PM (TTM) 15.78%
GM 41.48%
FCFM 16.77%
ROA(3y)5.59%
ROA(5y)5.07%
ROE(3y)22.11%
ROE(5y)19.49%
ROIC(3y)13.68%
ROIC(5y)12.27%
ROICexc(3y)21.02%
ROICexc(5y)18.45%
ROICexgc(3y)44.19%
ROICexgc(5y)39.13%
ROCE(3y)16.99%
ROCE(5y)15.24%
ROICexgc growth 3Y11.65%
ROICexgc growth 5Y5.93%
ROICexc growth 3Y15.6%
ROICexc growth 5Y8.67%
OM growth 3Y9.47%
OM growth 5Y3.83%
PM growth 3Y21.52%
PM growth 5Y-4.24%
GM growth 3Y-0.68%
GM growth 5Y-2.31%
F-Score8
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.05
Debt/EBITDA 1.36
Cap/Depr 88.47%
Cap/Sales 2.57%
Interest Coverage 15.75
Cash Conversion 87.19%
Profit Quality 106.33%
Current Ratio 1.29
Quick Ratio 1.29
Altman-Z 1.91
F-Score8
WACC7.73%
ROIC/WACC1.97
Cap/Depr(3y)70.92%
Cap/Depr(5y)67.63%
Cap/Sales(3y)2.27%
Cap/Sales(5y)2.59%
Profit Quality(3y)122.96%
Profit Quality(5y)139.46%
High Growth Momentum
Growth
EPS 1Y (TTM)6.43%
EPS 3Y8.67%
EPS 5Y5.53%
EPS Q2Q%3.36%
EPS Next Y2.24%
EPS Next 2Y5.7%
EPS Next 3Y7.37%
EPS Next 5Y12.78%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
Revenue Next Year2.37%
Revenue Next 2Y3.3%
Revenue Next 3Y3.84%
Revenue Next 5Y6.93%
EBIT growth 1Y10.98%
EBIT growth 3Y16.51%
EBIT growth 5Y13.29%
EBIT Next Year4.81%
EBIT Next 3Y1.99%
EBIT Next 5Y10.35%
FCF growth 1Y-17.78%
FCF growth 3Y2.9%
FCF growth 5Y0.78%
OCF growth 1Y-13.88%
OCF growth 3Y3.34%
OCF growth 5Y0.63%

PAYPAL HOLDINGS INC / PYPL Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?

ChartMill assigns a fundamental rating of 6 / 10 to PYPL.


What is the valuation status of PAYPAL HOLDINGS INC (PYPL) stock?

ChartMill assigns a valuation rating of 7 / 10 to PAYPAL HOLDINGS INC (PYPL). This can be considered as Undervalued.


How profitable is PAYPAL HOLDINGS INC (PYPL) stock?

PAYPAL HOLDINGS INC (PYPL) has a profitability rating of 8 / 10.


What are the PE and PB ratios of PAYPAL HOLDINGS INC (PYPL) stock?

The Price/Earnings (PE) ratio for PAYPAL HOLDINGS INC (PYPL) is 9.7 and the Price/Book (PB) ratio is 2.28.


How sustainable is the dividend of PAYPAL HOLDINGS INC (PYPL) stock?

The dividend rating of PAYPAL HOLDINGS INC (PYPL) is 3 / 10 and the dividend payout ratio is 2.48%.