PayPal Holdings Valuation
| PYPL Stock | USD 41.15 0.73 1.81% |
At this time, the company appears to be undervalued. PayPal Holdings holds a recent Real Value of $42.43 per share. The prevailing price of the company is $41.15. Our model determines the value of PayPal Holdings from analyzing the company fundamentals such as Shares Outstanding of 920.66 M, return on equity of 0.26, and Operating Margin of 0.17 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting PayPal Holdings' valuation include:
Price Book 1.8371 | Enterprise Value | Enterprise Value Ebitda 4.7789 | Price Sales 1.1401 | Forward PE 7.6394 |
Undervalued
Today
Please note that PayPal Holdings' price fluctuation is very steady at this time. Calculation of the real value of PayPal Holdings is based on 3 months time horizon. Increasing PayPal Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the PayPal stock is determined by what a typical buyer is willing to pay for full or partial control of PayPal Holdings. Since PayPal Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of PayPal Stock. However, PayPal Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 41.15 | Real 42.43 | Target 54.55 | Hype 40.5 |
The intrinsic value of PayPal Holdings' stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence PayPal Holdings' stock price.
Estimating the potential upside or downside of PayPal Holdings helps investors to forecast how PayPal stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of PayPal Holdings more accurately as focusing exclusively on PayPal Holdings' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use PayPal Holdings' intrinsic value based on its ongoing forecasts of PayPal Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against PayPal Holdings' closest peers.
PayPal Holdings Cash |
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PayPal Revenue by Product
PayPal Holdings Total Value Analysis
PayPal Holdings is at this time projected to have valuation of 36.78 B with market capitalization of 37.82 B, debt of 9.99 B, and cash on hands of 10.85 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the PayPal Holdings fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
36.78 B | 37.82 B | 9.99 B | 10.85 B |
PayPal Holdings Investor Information
About 83.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.84. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. PayPal Holdings has Price/Earnings To Growth (PEG) ratio of 0.63. The entity recorded earning per share (EPS) of 5.41. The firm last dividend was issued on the 4th of March 2026. Based on the key indicators related to PayPal Holdings' liquidity, profitability, solvency, and operating efficiency, PayPal Holdings is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.13 | 0.1828 |
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| Total Cash From Operating Activities | 4.8 B | 6.4 B |
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| Operating Income | 6.9 B | 6.6 B |
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PayPal Holdings Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. PayPal Holdings has an asset utilization ratio of 41.58 percent. This suggests that the Company is making $0.42 for each dollar of assets. An increasing asset utilization means that PayPal Holdings is more efficient with each dollar of assets it utilizes for everyday operations.PayPal Holdings Profitability Analysis
Based on PayPal Holdings' profitability indicators, PayPal Holdings' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess PayPal Holdings' ability to earn profits and add value for shareholders.Net Income | First Reported 2014-03-31 | Previous Quarter 1.2 B | Current Value 1.4 B | Quarterly Volatility 464.7 M |
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| Gross Profit Margin | 0.62 | 0.4662 |
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| Net Profit Margin | 0.1 | 0.1578 |
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| Operating Profit Margin | 0.13 | 0.1828 |
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| Pretax Profit Margin | 0.14 | 0.1897 |
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| Return On Assets | 0.0373 | 0.0653 |
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| Return On Equity | 0.27 | 0.2583 |
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For PayPal Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PayPal Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PayPal Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PayPal Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PayPal Holdings over time as well as its relative position and ranking within its peers.
PayPal Holdings Earnings per Share Projection vs Actual
The next projected EPS of PayPal Holdings is estimated to be 1.3517 with future projections ranging from a low of 1.25 to a high of 1.48. PayPal Holdings' most recent 12-month trailing earnings per share (EPS TTM) is at 5.41. Please be aware that the consensus of earnings estimates for PayPal Holdings is based on EPS before non-recurring items and includes expenses related to employee stock options.PayPal Holdings Earnings Estimation Breakdown
The calculation of PayPal Holdings' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of PayPal Holdings is estimated to be 1.3517 with the future projection ranging from a low of 1.25 to a high of 1.48. Please be aware that this consensus of annual earnings estimates for PayPal Holdings is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
1.25 Lowest | Expected EPS | 1.48 Highest |
PayPal Holdings Earnings Projection Consensus
Suppose the current estimates of PayPal Holdings' value are higher than the current market price of the PayPal Holdings stock. In this case, investors may conclude that PayPal Holdings is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and PayPal Holdings' stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 45 | 88.68% | 0.0 | 1.3517 | 5.41 |
PayPal Holdings Ownership Allocation
PayPal Holdings owns a total of 920.66 Million outstanding shares. The majority of PayPal Holdings outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in PayPal Holdings to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in PayPal Holdings. Please pay attention to any change in the institutional holdings of PayPal Holdings as this could imply that something significant has changed or is about to change at the company. On January 26, 2026, Representative Nancy Pelosi of US Congress acquired $250k to $500k worth of PayPal Holdings's common stock.PayPal Holdings Profitability Analysis
The company reported the previous year's revenue of 33.34 B. Net Income was 5.23 B with profit before overhead, payroll, taxes, and interest of 13.76 B.PayPal Holdings Past Distributions to stockholders
About PayPal Holdings Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of PayPal Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of PayPal Holdings based exclusively on its fundamental and basic technical indicators. By analyzing PayPal Holdings's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of PayPal Holdings's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of PayPal Holdings. We calculate exposure to PayPal Holdings's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of PayPal Holdings's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 15.7 B | 10.6 B | |
| Pretax Profit Margin | 0.19 | 0.14 | |
| Operating Profit Margin | 0.18 | 0.13 | |
| Net Profit Margin | 0.16 | 0.10 | |
| Gross Profit Margin | 0.47 | 0.62 |
A single share of PayPal Holdings represents a small ownership stake in the entity. As a stockholder of PayPal, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
PayPal Holdings Dividends Analysis For Valuation
Please note that PayPal Holdings has scaled down on payment of dividends at this time. At this time, PayPal Holdings' Retained Earnings are quite stable compared to the past year. Retained Earnings Total Equity is expected to rise to about 22.9 B this year, although the value of Price Earnings Ratio will most likely fall to 10.16.
There are various types of dividends PayPal Holdings can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of PayPal shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from PayPal Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When PayPal pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of PayPal Holdings by the value of the dividends paid out.
PayPal Holdings Growth Indicators
Investing in growth stocks can be very risky. If the company such as PayPal Holdings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 968 M | |
| Quarterly Earnings Growth Y O Y | 0.394 | |
| Forward Price Earnings | 7.6394 |
PayPal Holdings Current Valuation Indicators
PayPal Holdings' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final PayPal Holdings' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as PayPal Holdings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use PayPal Holdings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes PayPal Holdings' worth.When determining whether PayPal Holdings is a strong investment it is important to analyze PayPal Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PayPal Holdings' future performance. For an informed investment choice regarding PayPal Stock, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PayPal Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. For more information on how to buy PayPal Stock please use our How to buy in PayPal Stock guide.You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Transaction & Payment Processing Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PayPal Holdings. Anticipated expansion of PayPal directly elevates investor willingness to pay premium valuations. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive PayPal Holdings assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 0.394 | Dividend Share 0.28 | Earnings Share 5.41 | Revenue Per Share | Quarterly Revenue Growth 0.037 |
The market value of PayPal Holdings is measured differently than its book value, which is the value of PayPal that is recorded on the company's balance sheet. Investors also form their own opinion of PayPal Holdings' value that differs from its market value or its book value, called intrinsic value, which is PayPal Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PayPal Holdings' market value can be influenced by many factors that don't directly affect PayPal Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
It's important to distinguish between PayPal Holdings' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding PayPal Holdings should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Meanwhile, PayPal Holdings' quoted price indicates the marketplace figure where supply meets demand through bilateral consent.