Our updated Discounted-Cash-Flow (DCF) analysis shows that the fair value of PayPal’s stock is around $85 USD, significantly higher than the current price of $65.15 USD (as of March 29, 2025).

Despite a 4% revenue growth in Q4 2024 to $8.37 billion and an earnings per share (EPS) of $1.11, which exceeded expectations, our calculations suggest that the stock is undervalued. This could present a potential buying opportunity for investors.

However, risks include intense competition in the payment processing industry, regulatory challenges, and macroeconomic uncertainties. Investors should carefully consider these factors before making investment decisions.

How well do narratives help inform your perspective?

Disclaimer

The user Marco_iltedesco holds no position in NasdaqGS:PYPL. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.