PayPal Holdings, Inc.

DB:2PP Stock Report

Market Cap: €83.5b

PayPal Holdings Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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.

Below Fair Value: 2PP (€83.11) is trading below our estimate of fair value (€109.58)

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 Ratio19.6x
EarningsUS$4.43b
Market CapUS$86.99b

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 Average31.1x
DB1 Deutsche Börse
21.4x4.6%€39.5b
DBK Deutsche Bank
7.8x13.4%€30.2b
FI Fiserv
41.2x18.7%US$126.0b
SQ Block
54.3x27.7%US$57.2b
2PP PayPal Holdings
19.6x6.1%€87.0b

Price-To-Earnings vs Peers: 2PP is good value based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (31.1x).

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 19.6xIndustry Avg. 10.7xNo. of Companies13PE01020304050+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2PP is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the European Diversified Financial industry average (10.7x).

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 Ratio19.6x
Fair PE Ratio21.5x

Price-To-Earnings vs Fair Ratio: 2PP is good value based on its Price-To-Earnings Ratio (19.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).

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€83.11
€86.01
+3.5%
12.6%€120.04€67.22n/a37
Nov ’25€71.20
€81.80
+14.9%
12.8%€115.35€64.60n/a36
Oct ’25€69.89
€74.46
+6.5%
14.7%€112.93€61.43n/a34
Sep ’25€65.46
€72.52
+10.8%
17.2%€130.46€56.14n/a34
Aug ’25€60.48
€72.55
+20.0%
17.4%€133.91€55.41n/a38
Jul ’25€53.71
€72.55
+35.1%
17.8%€135.30€55.99n/a38
Jun ’25€57.73
€71.67
+24.2%
17.8%€133.66€55.31n/a38
May ’25€63.77
€71.39
+11.9%
18.8%€135.62€52.47n/a38
Apr ’25€62.13
€67.41
+8.5%
21.3%€135.00€52.23n/a38
Mar ’25€56.40
€66.36
+17.7%
21.3%€133.81€51.68n/a40
Feb ’25€56.83
€69.84
+22.9%
24.7%€133.40€51.52n/a37
Jan ’25€57.01
€69.35
+21.6%
25.8%€131.31€49.81n/a41
Dec ’24€54.84
€70.75
+29.0%
25.3%€132.50€50.26n/a42
Nov ’24€49.50
€77.13
+55.8%
24.4%€136.58€51.80€71.2044
Oct ’24€54.99
€85.67
+55.8%
28.3%€189.18€54.86€69.8939
Sep ’24€59.04
€84.25
+42.7%
26.9%€184.40€53.48€65.4640
Aug ’24€68.80
€85.00
+23.6%
28.0%€180.96€52.48€60.4843
Jul ’24€60.93
€86.06
+41.2%
28.1%€183.62€53.25€53.7143
Jun ’24€58.78
€90.72
+54.3%
26.7%€186.62€54.12€57.7341
May ’24€68.83
€94.06
+36.7%
22.6%€181.50€72.60€63.7740
Apr ’24€70.02
€95.42
+36.3%
22.9%€184.38€64.53€62.1340
Mar ’24€69.30
€96.81
+39.7%
22.2%€187.02€65.46€56.4042
Feb ’24€75.83
€95.75
+26.3%
21.7%€182.52€68.27€56.8344
Jan ’24€65.44
€99.49
+52.0%
18.3%€150.98€70.77€57.0142
Dec ’23€74.75
€103.87
+39.0%
17.9%€156.19€73.22€54.8441
Nov ’23€84.28
€120.16
+42.6%
13.7%€160.58€85.31€49.5041

Analyst Forecast: Target price is less than 20% higher than the current share price.

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