PayPal Holdings Valuation
| PYPL Stock | USD 89.56 0.80 0.90% |
At this time, the company appears to be overvalued. PayPal Holdings holds a recent Real Value of $82.14 per share. The prevailing price of the company is $89.56. Our model determines the value of PayPal Holdings from analyzing the company fundamentals such as Shares Outstanding of 1 B, return on equity of 0.22, and Operating Margin of 0.18 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting PayPal Holdings' valuation include:
Price Book 4.3826 | Enterprise Value | Enterprise Value Ebitda 12.1279 | Price Sales 2.8288 | Forward PE 17.9533 |
Overvalued
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 89.56 | Real 82.14 | Target 94.42 | Hype 89.54 | Naive 90.14 |
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 Valuation Trend
Knowing PayPal Holdings' actual value is paramount for traders when making sound investment determinations. Using both PayPal Holdings' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
PayPal Revenue by Product
PayPal Holdings Total Value Analysis
PayPal Holdings is at this time projected to have valuation of 86.47 B with market capitalization of 88.99 B, debt of 9.68 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 |
86.47 B | 88.99 B | 9.68 B | 10.85 B |
PayPal Holdings Investor Information
About 75.0% of the company shares are owned by institutional investors. The book value of PayPal Holdings was at this time reported as 20.05. The company has Price/Earnings To Growth (PEG) ratio of 1.47. PayPal Holdings had not issued any dividends in recent years. Based on the key indicators related to PayPal Holdings' liquidity, profitability, solvency, and operating efficiency, PayPal Holdings may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.18 | 0.19 |
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| Total Cash From Operating Activities | 4.3 B | 5.6 B |
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| Operating Income | 6.1 B | 5.8 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 36.23 percent. This suggests that the Company is making $0.36 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 Ownership Allocation
PayPal Holdings owns a total of 1 Billion 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 13, 2025, Representative James Comer of US Congress acquired under $15k worth of PayPal Holdings's common stock.PayPal Holdings Profitability Analysis
The company reported the previous year's revenue of 29.77 B. Net Income was 4.25 B with profit before overhead, payroll, taxes, and interest of 12.61 B.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 | 15.8 B | 9.6 B | |
| Pretax Profit Margin | 0.16 | 0.13 | |
| Operating Profit Margin | 0.19 | 0.18 | |
| Net Profit Margin | 0.13 | 0.10 | |
| Gross Profit Margin | 0.53 | 0.64 |
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 | 1.1 B | |
| Quarterly Earnings Growth Y O Y | 0.065 | |
| Forward Price Earnings | 17.9533 |
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 american community survey. For more information on how to buy PayPal Stock please use our How to buy in PayPal Stock guide.You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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. If investors know PayPal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PayPal Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.065 | Earnings Share 4.18 | Revenue Per Share | Quarterly Revenue Growth 0.058 | Return On Assets |
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.
Please note, there is a significant difference between PayPal Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if PayPal Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PayPal Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.