PayPal Holdings, Inc.

XTRA:2PP Stock Report

Market Cap: €75.3b

PayPal Holdings Valuation

Is 2PP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2PP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€131.63
Fair Value
42.9% undervalued intrinsic discount
35
Number of Analysts

Below Fair Value: 2PP (€75.14) is trading below our estimate of fair value (€131.63)

Significantly Below Fair Value: 2PP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2PP?

Key metric: As 2PP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2PP. This is calculated by dividing 2PP's market cap by their current earnings.
What is 2PP's PE Ratio?
PE Ratio18.7x
EarningsUS$4.15b
Market CapUS$77.72b

Price to Earnings Ratio vs Peers

How does 2PP's PE Ratio compare to its peers?

The above table shows the PE ratio for 2PP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.2x
DB1 Deutsche Börse
23.9x5.4%€44.1b
DBK Deutsche Bank
12.9x22.0%€36.2b
FI Fiserv
41.8x18.4%US$131.6b
XYZ Block
46.1x23.6%US$49.0b
2PP PayPal Holdings
18.7x7.9%€77.7b

Price-To-Earnings vs Peers: 2PP is good value based on its Price-To-Earnings Ratio (18.7x) compared to the peer average (31.3x).

Price to Earnings Ratio vs Industry

How does 2PP's PE Ratio compare vs other companies in the European Diversified Financial Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2PP 18.7xIndustry Avg. 12.2xNo. of Companies12PE01020304050+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2PP is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the European Diversified Financial industry average (12.2x).

Price to Earnings Ratio vs Fair Ratio

What is 2PP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2PP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.7x
Fair PE Ratio21.7x

Price-To-Earnings vs Fair Ratio: 2PP is good value based on its Price-To-Earnings Ratio (18.7x) compared to the estimated Fair Price-To-Earnings Ratio (21.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2PP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€75.14
€92.01
+22.4%
12.8%€121.04€67.78n/a35
Feb ’26€86.56
€92.49
+6.9%
11.6%€120.13€67.27n/a35
Jan ’26€82.29
€90.37
+9.8%
12.8%€120.56€67.52n/a37
Dec ’25€82.04
€85.72
+4.5%
12.3%€118.13€66.15n/a36
Nov ’25€71.18
€81.80
+14.9%
12.8%€115.35€64.60n/a36
Oct ’25€69.72
€74.46
+6.8%
14.7%€112.93€61.43n/a34
Sep ’25€65.02
€72.52
+11.5%
17.2%€130.46€56.14n/a34
Aug ’25€61.40
€72.55
+18.2%
17.4%€133.91€55.41n/a38
Jul ’25€53.60
€72.55
+35.4%
17.8%€135.30€55.99n/a38
Jun ’25€57.22
€71.67
+25.3%
17.8%€133.66€55.31n/a38
May ’25€64.20
€71.39
+11.2%
18.8%€135.62€52.47n/a38
Apr ’25€62.44
€67.41
+8.0%
21.3%€135.00€52.23n/a38
Mar ’25€55.98
€66.36
+18.5%
21.3%€133.81€51.68n/a40
Feb ’25€56.26
€69.84
+24.1%
24.7%€133.40€51.52€86.5637
Jan ’25€57.03
€69.35
+21.6%
25.8%€131.31€49.81€82.2941
Dec ’24€53.91
€70.75
+31.2%
25.3%€132.50€50.26€82.0442
Nov ’24€48.96
€77.13
+57.5%
24.4%€136.58€51.80€71.1844
Oct ’24€55.41
€85.67
+54.6%
28.3%€189.18€54.86€69.7239
Sep ’24€58.49
€84.25
+44.0%
26.9%€184.40€53.48€65.0240
Aug ’24€68.44
€85.00
+24.2%
28.0%€180.96€52.48€61.4043
Jul ’24€60.64
€86.06
+41.9%
28.1%€183.62€53.25€53.6043
Jun ’24€58.47
€90.72
+55.2%
26.7%€186.62€54.12€57.2241
May ’24€68.64
€94.06
+37.0%
22.6%€181.50€72.60€64.2040
Apr ’24€69.22
€95.42
+37.8%
22.9%€184.38€64.53€62.4440
Mar ’24€69.17
€96.81
+40.0%
22.2%€187.02€65.46€55.9842
Feb ’24€74.20
€95.75
+29.0%
21.7%€182.52€68.27€56.2644
Analyst Price Target
Consensus Narrative from 35 Analysts
€90.87
Fair Value
17.3% undervalued intrinsic discount
35
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 12:46
End of Day Share Price 2025/02/07 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

PayPal Holdings, Inc. is covered by 76 analysts. 38 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Oliver LesterArete Research Services LLP
Stephen BiggarArgus Research Company
Colin SebastianBaird