PAYPAL HOLDINGS INC (PYPL) Fundamental Analysis & Valuation

NASDAQ:PYPL • US70450Y1038

Current stock price

44.845 USD
+0.63 (+1.44%)
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.
  • Each year in the past 5 years PYPL has 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

  • PYPL's Return On Assets of 6.53% is amongst the best of the industry. PYPL outperforms 83.00% of its industry peers.
  • PYPL's Return On Equity of 25.83% is amongst the best of the industry. PYPL outperforms 91.00% of its industry peers.
  • PYPL's Return On Invested Capital of 15.26% is amongst the best of the industry. PYPL outperforms 93.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PYPL is significantly above the industry average of 8.07%.
  • 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

  • Looking at the Profit Margin, with a value of 15.78%, PYPL is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
  • PYPL's Profit Margin has declined in the last couple of years.
  • With a decent Operating Margin value of 19.28%, PYPL is doing good in the industry, outperforming 69.00% of the companies in the same industry.
  • PYPL's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 41.48%, PYPL is doing good in the industry, outperforming 63.00% 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

  • PYPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • PYPL has less shares outstanding than it did 1 year ago.
  • PYPL has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for PYPL is higher compared to a year ago.
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 1.85 indicates that PYPL is not a great score, but indicates 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.
  • PYPL's Debt to FCF ratio of 2.05 is fine compared to the rest of the industry. PYPL outperforms 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.
  • PYPL has a Debt to Equity ratio (0.49) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.05
Altman-Z 1.85
ROIC/WACC1.99
WACC7.66%
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.
  • 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.
  • PYPL has a Quick 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 Quick ratio of PYPL (1.29) is better than 65.00% 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.
  • PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.32%.
  • PYPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.11% yearly.
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 Y2.2%
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

  • Based on the Price/Earnings ratio of 8.46, the valuation of PYPL can be described as reasonable.
  • Based on the Price/Earnings ratio, PYPL is valued a bit cheaper than the industry average as 67.00% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.50, PYPL is valued rather cheaply.
  • A Price/Forward Earnings ratio of 8.28 indicates a reasonable valuation of PYPL.
  • 66.00% of the companies in the same industry are more expensive than PYPL, based on the Price/Forward Earnings ratio.
  • PYPL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.46
Fwd PE 8.28
PYPL Price Earnings VS Forward Price EarningsPYPL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 91.00% of the companies in the same industry are more expensive than PYPL, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, PYPL is valued cheaply inside the industry as 83.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 7.42
EV/EBITDA 5.34
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.
  • PYPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.84
PEG (5Y)1.53
EPS Next 2Y5.68%
EPS Next 3Y7.36%

More info and screens

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

2

5. PYPL Dividend Analysis

5.1 Amount

  • PYPL has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
  • In the last 3 months the price of PYPL has falen by -26.28%. 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 2.50, PYPL has a dividend in line with its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.89, PYPL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.27%

5.2 History

  • PYPL does not have a reliable dividend history as it only pays dividend since a couple or years.
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

  • 2.48% of the earnings are spent on dividend by PYPL. This is a low number and 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

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PYPL Fundamentals: All Metrics, Ratios and Statistics

PAYPAL HOLDINGS INC

NASDAQ:PYPL (3/25/2026, 1:25:07 PM)

44.845

+0.63 (+1.44%)

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 Cap41.29B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts65.88
Price Target51.89 (15.71%)
Short Float %4.56%
Short Ratio1.67
Dividend
Industry RankSector Rank
Dividend Yield 1.27%
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)-29.9%
PT rev (3m)-35.9%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-9.49%
EPS NY rev (1m)-7.71%
EPS NY rev (3m)-8.95%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)-3.02%
Revenue NY rev (3m)-3.3%
Valuation
Industry RankSector Rank
PE 8.46
Fwd PE 8.28
P/S 1.24
P/FCF 7.42
P/OCF 6.44
P/B 2.04
P/tB 4.5
EV/EBITDA 5.34
EPS(TTM)5.3
EY11.82%
EPS(NY)5.42
Fwd EY12.08%
FCF(TTM)6.04
FCFY13.48%
OCF(TTM)6.97
OCFY15.54%
SpS36.03
BVpS22
TBVpS9.98
PEG (NY)3.84
PEG (5Y)1.53
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
WACC7.66%
ROIC/WACC1.99
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.