PAYPAL HOLDINGS INC (PYPL) Fundamental Analysis & Valuation

NASDAQ:PYPL • US70450Y1038

Current stock price

43.59 USD
-1.61 (-3.56%)
At close:
43.4418 USD
-0.15 (-0.34%)
After Hours:

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.
  • Each year in the past 5 years PYPL has been profitable.
  • Each year in the past 5 years PYPL had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 6.53%, PYPL belongs to the top of the industry, outperforming 83.00% 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 91.00% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 15.26%, PYPL belongs to the best of the industry, outperforming 93.00% of the companies in the same industry.
  • PYPL had an Average Return On Invested Capital over the past 3 years of 13.68%. This is significantly above the industry average of 8.03%.
  • The 3 year average ROIC (13.68%) for PYPL is below the current ROIC(15.26%), indicating increased profibility in the last year.
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 64.00% of its industry peers.
  • PYPL's Profit Margin has declined in the last couple of years.
  • PYPL has a better Operating Margin (19.28%) than 69.00% of its industry peers.
  • In the last couple of years the Operating Margin of PYPL has grown nicely.
  • The Gross Margin of PYPL (41.48%) is better than 63.00% of its industry peers.
  • In the last couple of years the Gross Margin of PYPL has declined.
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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PYPL is creating value.
  • Compared to 1 year ago, PYPL has less shares outstanding
  • PYPL has less shares outstanding than it did 5 years ago.
  • PYPL has a worse debt/assets ratio than last year.
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

  • PYPL has an Altman-Z score of 1.85. This is not the best score and indicates that PYPL is in the grey zone with still only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 1.85, PYPL is in the better half of the industry, outperforming 77.00% of the companies in the same industry.
  • 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 72.00% of its industry peers.
  • PYPL has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of PYPL (0.49) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.05
Altman-Z 1.85
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

  • A Current Ratio of 1.29 indicates that PYPL should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.29, PYPL is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
  • A Quick Ratio of 1.29 indicates that PYPL should not have too much problems paying its short term obligations.
  • With a decent Quick ratio value of 1.29, PYPL is doing good in the industry, outperforming 65.00% of the companies in the same industry.
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

  • PYPL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.43%.
  • PYPL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
  • 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

  • PYPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.78% yearly.
  • 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 Y2.2%
EPS Next 2Y5.68%
EPS Next 3Y7.36%
EPS Next 5Y12.78%
Revenue Next Year2.41%
Revenue Next 2Y3.33%
Revenue Next 3Y3.93%
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

  • A Price/Earnings ratio of 8.22 indicates a reasonable valuation of PYPL.
  • 66.00% of the companies in the same industry are more expensive than PYPL, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 24.89. PYPL is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 8.05 indicates a reasonable valuation of PYPL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PYPL indicates a somewhat cheap valuation: PYPL is cheaper than 63.00% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. PYPL is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.22
Fwd PE 8.05
PYPL Price Earnings VS Forward Price EarningsPYPL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PYPL is valued cheaply inside the industry as 91.00% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of PYPL indicates a rather cheap valuation: PYPL is cheaper than 83.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.21
EV/EBITDA 5.26
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 PYPL does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of PYPL may justify a higher PE ratio.
PEG (NY)3.74
PEG (5Y)1.49
EPS Next 2Y5.68%
EPS Next 3Y7.36%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. PYPL Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.24%, PYPL has a reasonable but not impressive dividend return.
  • In the last 3 months the price of PYPL has falen by -27.31%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 2.13, PYPL has a dividend in line with its industry peers.
  • PYPL's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.24%

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 Years0
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 2Y5.68%
EPS Next 3Y7.36%
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

More info and screens

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PYPL Fundamentals: All Metrics, Ratios and Statistics

PAYPAL HOLDINGS INC

NASDAQ:PYPL (3/27/2026, 8:00:01 PM)

After market: 43.4418 -0.15 (-0.34%)

43.59

-1.61 (-3.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners82.1%
Inst Owner Change-1.18%
Ins Owners0.1%
Ins Owner Change0.18%
Market Cap40.13B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts65.88
Price Target51.72 (18.65%)
Short Float %4.56%
Short Ratio1.67
Dividend
Industry RankSector Rank
Dividend Yield 1.24%
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DP2.48%
Div Incr Years0
Div Non Decr Years0
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)-30.13%
PT rev (3m)-36.1%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-9.22%
EPS NY rev (1m)-7.71%
EPS NY rev (3m)-8.95%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-3.3%
Valuation
Industry RankSector Rank
PE 8.22
Fwd PE 8.05
P/S 1.21
P/FCF 7.21
P/OCF 6.25
P/B 1.98
P/tB 4.37
EV/EBITDA 5.26
EPS(TTM)5.3
EY12.16%
EPS(NY)5.42
Fwd EY12.43%
FCF(TTM)6.04
FCFY13.86%
OCF(TTM)6.97
OCFY15.99%
SpS36.03
BVpS22
TBVpS9.98
PEG (NY)3.74
PEG (5Y)1.49
Graham Number51.22
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 1.85
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 Y2.2%
EPS Next 2Y5.68%
EPS Next 3Y7.36%
EPS Next 5Y12.78%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
Revenue Next Year2.41%
Revenue Next 2Y3.33%
Revenue Next 3Y3.93%
Revenue Next 5Y6.93%
EBIT growth 1Y10.98%
EBIT growth 3Y16.51%
EBIT growth 5Y13.29%
EBIT Next Year5.21%
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.


Can you provide the profitability details for PAYPAL HOLDINGS INC?

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


What is the financial health of PAYPAL HOLDINGS INC (PYPL) stock?

The financial health rating of PAYPAL HOLDINGS INC (PYPL) is 6 / 10.


Can you provide the expected EPS growth for PYPL stock?

The Earnings per Share (EPS) of PAYPAL HOLDINGS INC (PYPL) is expected to grow by 2.2% in the next year.