PayPal Holdings Valuation
Is PYPL * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6Valuation Score 1/6
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 PYPL * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: PYPL * (MX$1775.01) is trading above our estimate of fair value (MX$1571.33)
Significantly Below Fair Value: PYPL * is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for PYPL *?
Key metric: As PYPL * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is PYPL *'s PE Ratio? | |
|---|---|
| PE Ratio | 19.6x |
| Earnings | US$4.43b |
| Market Cap | US$86.99b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.8x |
| Enterprise Value/EBITDA | 14.4x |
| PEG Ratio | 3.2x |
Price to Earnings Ratio vs Peers
How does PYPL *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 57.5x | ||
FI Fiserv | 41.2x | 18.7% | US$126.0b |
SQ Block | 54.3x | 27.7% | US$57.2b |
FIS Fidelity National Information Services | 85.2x | 24.9% | US$46.3b |
ADYEN Adyen | 49.2x | 19.8% | €40.6b |
PYPL * PayPal Holdings | 19.6x | 6.1% | Mex$87.0b |
Price-To-Earnings vs Peers: PYPL * is good value based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (57.5x).
Price to Earnings Ratio vs Industry
How does PYPL *'s PE Ratio compare vs other companies in the South American Diversified Financial Industry?
| 2 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 2 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: PYPL * is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the South American Diversified Financial industry average (8.5x).
Price to Earnings Ratio vs Fair Ratio
What is PYPL *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 19.6x |
| Fair PE Ratio | 14.4x |
Price-To-Earnings vs Fair Ratio: PYPL * is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.4x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | Mex$1,775.01 | Mex$1,834.46 +3.3% | 12.6% | Mex$2,560.09 | Mex$1,433.65 | n/a | 37 |
| Nov ’25 | Mex$1,570.93 | Mex$1,797.48 +14.4% | 12.8% | Mex$2,534.58 | Mex$1,419.36 | n/a | 36 |
| Oct ’25 | Mex$1,527.01 | Mex$1,616.54 +5.9% | 14.7% | Mex$2,451.65 | Mex$1,333.70 | n/a | 34 |
| Sep ’25 | Mex$1,425.02 | Mex$1,582.94 +11.1% | 17.2% | Mex$2,847.73 | Mex$1,225.50 | n/a | 34 |
| Aug ’25 | Mex$1,229.00 | Mex$1,463.49 +19.1% | 17.4% | Mex$2,701.36 | Mex$1,117.81 | n/a | 38 |
| Jul ’25 | Mex$1,060.25 | Mex$1,410.48 +33.0% | 17.8% | Mex$2,630.30 | Mex$1,088.40 | n/a | 38 |
| Jun ’25 | Mex$1,055.36 | Mex$1,319.17 +25.0% | 17.8% | Mex$2,460.03 | Mex$1,017.94 | n/a | 38 |
| May ’25 | Mex$1,164.64 | Mex$1,298.93 +11.5% | 18.8% | Mex$2,467.58 | Mex$954.70 | n/a | 38 |
| Apr ’25 | Mex$1,083.22 | Mex$1,204.23 +11.2% | 21.3% | Mex$2,411.57 | Mex$933.03 | n/a | 38 |
| Mar ’25 | Mex$1,026.02 | Mex$1,223.83 +19.3% | 21.3% | Mex$2,467.70 | Mex$953.04 | n/a | 40 |
| Feb ’25 | Mex$1,058.82 | Mex$1,297.03 +22.5% | 24.7% | Mex$2,477.54 | Mex$956.84 | n/a | 37 |
| Jan ’25 | Mex$1,041.97 | Mex$1,300.46 +24.8% | 25.8% | Mex$2,462.43 | Mex$934.03 | n/a | 41 |
| Dec ’24 | Mex$1,020.01 | Mex$1,324.50 +29.9% | 25.3% | Mex$2,480.63 | Mex$940.93 | n/a | 42 |
| Nov ’24 | Mex$920.18 | Mex$1,478.44 +60.7% | 24.4% | Mex$2,617.76 | Mex$992.94 | Mex$1,570.93 | 44 |
| Oct ’24 | Mex$1,018.00 | Mex$1,578.73 +55.1% | 28.3% | Mex$3,486.20 | Mex$1,011.00 | Mex$1,527.01 | 39 |
| Sep ’24 | Mex$1,085.27 | Mex$1,546.36 +42.5% | 26.9% | Mex$3,384.42 | Mex$981.48 | Mex$1,425.02 | 40 |
| Aug ’24 | Mex$1,276.00 | Mex$1,590.46 +24.6% | 28.0% | Mex$3,385.82 | Mex$981.89 | Mex$1,229.00 | 43 |
| Jul ’24 | Mex$1,144.09 | Mex$1,610.10 +40.7% | 28.1% | Mex$3,435.28 | Mex$996.23 | Mex$1,060.25 | 43 |
| Jun ’24 | Mex$1,104.93 | Mex$1,734.68 +57.0% | 26.7% | Mex$3,568.26 | Mex$1,034.80 | Mex$1,055.36 | 41 |
| May ’24 | Mex$1,362.08 | Mex$1,863.64 +36.8% | 22.6% | Mex$3,595.98 | Mex$1,438.39 | Mex$1,164.64 | 40 |
| Apr ’24 | Mex$1,368.99 | Mex$1,865.34 +36.3% | 22.9% | Mex$3,604.48 | Mex$1,261.57 | Mex$1,083.22 | 40 |
| Mar ’24 | Mex$1,336.17 | Mex$1,900.29 +42.2% | 22.2% | Mex$3,671.18 | Mex$1,284.91 | Mex$1,026.02 | 42 |
| Feb ’24 | Mex$1,544.58 | Mex$1,958.74 +26.8% | 21.7% | Mex$3,733.51 | Mex$1,396.58 | Mex$1,058.82 | 44 |
| Jan ’24 | Mex$1,381.42 | Mex$2,062.69 +49.3% | 18.3% | Mex$3,130.02 | Mex$1,467.20 | Mex$1,041.97 | 42 |
| Dec ’23 | Mex$1,507.20 | Mex$2,079.78 +38.0% | 17.9% | Mex$3,127.42 | Mex$1,465.98 | Mex$1,020.01 | 41 |
| Nov ’23 | Mex$1,649.70 | Mex$2,370.26 +43.7% | 13.7% | Mex$3,167.42 | Mex$1,682.69 | Mex$920.18 | 41 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
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