PayPal Holdings, Inc.

BATS-CHIXE:2PPD Stock Report

Market Cap: €71.7b

PayPal Holdings Valuation

Is 2PPD 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 2PPD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2PPD (€69.84) is trading below our estimate of fair value (€93.3)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

2PPD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA13.3x
PEG Ratio3.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for 2PPD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average50x
WISE Wise
19x-3.4%UK£6.7b
LSEG London Stock Exchange Group
80.5x21.9%UK£54.8b
BOKU Boku
87.3x38.6%UK£475.0m
PAY PayPoint
13.3xn/aUK£473.6m
2PPD PayPal Holdings
17.8x5.1%€79.2b

Price-To-Earnings vs Peers: 2PPD is good value based on its Price-To-Earnings Ratio (17.8x) compared to the peer average (50x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 2PPD is expensive based on its Price-To-Earnings Ratio (17.8x) compared to the UK Diversified Financial industry average (13.6x).


Price to Earnings Ratio vs Fair Ratio

What is 2PPD'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.

2PPD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.8x
Fair PE Ratio22.7x

Price-To-Earnings vs Fair Ratio: 2PPD is good value based on its Price-To-Earnings Ratio (17.8x) compared to the estimated Fair Price-To-Earnings Ratio (22.7x).


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 2PPD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€69.84
€73.92
+5.8%
14.4%€112.93€61.43n/a33
Sep ’25€66.33
€72.52
+9.3%
17.2%€130.46€56.14n/a34
Aug ’25€61.78
€72.55
+17.4%
17.4%€133.91€55.41n/a38
Jul ’25€54.01
€72.55
+34.3%
17.8%€135.30€55.99n/a38
Jun ’25€58.31
€71.67
+22.9%
17.8%€133.66€55.31n/a38
May ’25€64.95
€71.39
+9.9%
18.8%€135.62€52.47n/a38
Apr ’25€61.79
€67.41
+9.1%
21.3%€135.00€52.23n/a38
Mar ’25€56.22
€66.36
+18.0%
21.3%€133.81€51.68n/a40
Feb ’25€56.21
€69.84
+24.2%
24.7%€133.40€51.52n/a37
Jan ’25€57.22
€69.35
+21.2%
25.8%€131.31€49.81n/a41
Dec ’24€53.63
€70.75
+31.9%
25.3%€132.50€50.26n/a42
Nov ’24€49.21
€77.13
+56.7%
24.4%€136.58€51.80n/a44
Oct ’24€55.78
€85.67
+53.6%
28.3%€189.18€54.86€70.5139
Sep ’24€58.36
€84.25
+44.4%
26.9%€184.40€53.48€66.3340
Aug ’24€68.50
€85.00
+24.1%
28.0%€180.96€52.48€61.7843
Jul ’24n/a
€86.06
0%
28.1%€183.62€53.25€54.0143
Jun ’24n/a
€90.72
0%
26.7%€186.62€54.12€58.3141
May ’24n/a
€94.06
0%
22.6%€181.50€72.60€64.9540
Apr ’24n/a
€95.42
0%
22.9%€184.38€64.53€61.7940
Mar ’24n/a
€96.81
0%
22.2%€187.02€65.46€56.2242
Feb ’24n/a
€95.75
0%
21.7%€182.52€68.27€56.2144
Jan ’24n/a
€99.49
0%
18.3%€150.98€70.77€57.2242
Dec ’23n/a
€103.87
0%
17.9%€156.19€73.22€53.6341
Nov ’23n/a
€120.16
0%
13.7%€160.58€85.31€49.2141
Oct ’23n/a
€120.69
0%
13.1%€160.45€85.24€55.7840

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


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