PayPal Holdings, Inc.

NasdaqGS:PYPL Stock Report

Market Cap: US$37.2b

PayPal Holdings Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: PYPL ($40.42) is trading below our estimate of future cash flow value ($116.62)

Significantly Below Future Cash Flow Value: PYPL is trading below future cash flow value by more than 20%.

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.

The above table shows the Price to Earnings ratio for PYPL. This is calculated by dividing PYPL's market cap by their current earnings.
What is PYPL's PE Ratio?
PE Ratio7.1x
EarningsUS$5.23b
Market CapUS$37.21b

Price to Earnings Ratio vs Peers

How does PYPL's PE Ratio compare to its peers?

The above table shows the PE ratio for PYPL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.7x
FISV Fiserv
8.9x0.92%US$32.3b
XYZ Block
10.7x2.49%US$33.5b
FIS Fidelity National Information Services
151.9x45.77%US$26.9b
CPAY Corpay
23.2x19.03%US$24.8b
PYPL PayPal Holdings
7.1x-3.04%US$37.2b

Price-To-Earnings vs Peers: PYPL is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (48.7x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does PYPL's PE Ratio compare vs other companies in the US Diversified Financial Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PMIR PMI Group
0.09xn/aUS$518.61k
ACGX Alliance Creative Group
1.6xn/aUS$266.23k
No more companies available in this PE range
PYPL 7.1xIndustry Avg. 15.8xNo. of Companies15PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PYPL is good value based on its Price-To-Earnings Ratio (7.1x) compared to the US Diversified Financial industry average (15.8x).

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.

PYPL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.1x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: PYPL is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).

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 PYPL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$40.42
US$54.55
+34.95%
26.81%US$100.00US$34.00n/a33
Feb ’27US$52.69
US$71.09
+34.92%
21.51%US$100.00US$50.00n/a34
Jan ’27US$58.38
US$77.94
+33.50%
18.03%US$105.00US$51.00n/a34
Dec ’26US$62.58
US$82.82
+32.33%
15.48%US$120.00US$60.00n/a33
Nov ’26US$69.27
US$83.33
+20.30%
14.71%US$120.00US$65.00n/a33
Oct ’26US$66.66
US$82.87
+24.32%
14.50%US$120.00US$62.00n/a32
Sep ’26US$70.19
US$82.68
+17.79%
13.95%US$120.00US$62.00n/a32
Aug ’26US$67.11
US$83.26
+24.06%
13.74%US$120.00US$62.00n/a34
Jul ’26US$75.29
US$81.94
+8.84%
16.15%US$120.00US$49.00n/a38
Jun ’26US$70.28
US$82.71
+17.69%
16.52%US$120.00US$49.00n/a38
May ’26US$65.41
US$82.27
+25.77%
16.51%US$110.00US$49.00n/a38
Apr ’26US$66.10
US$93.20
+41.00%
13.79%US$125.00US$70.00n/a35
Mar ’26US$71.05
US$95.48
+34.38%
12.73%US$125.00US$70.00n/a36
Feb ’26US$88.58
US$97.11
+9.62%
10.96%US$125.00US$70.00US$52.6935
Jan ’26US$85.35
US$94.51
+10.73%
12.41%US$125.00US$70.00US$58.3837
Dec ’25US$86.77
US$90.71
+4.54%
12.26%US$125.00US$70.00US$62.5836
Nov ’25US$77.25
US$88.65
+14.75%
12.79%US$125.00US$70.00US$69.2736
Oct ’25US$77.47
US$82.42
+6.39%
14.72%US$125.00US$68.00US$66.6634
Sep ’25US$72.43
US$80.60
+11.28%
17.23%US$145.00US$62.40US$70.1934
Aug ’25US$65.31
US$78.56
+20.28%
17.36%US$145.00US$60.00US$67.1138
Jul ’25US$57.81
US$77.76
+34.50%
17.76%US$145.00US$60.00US$75.2938
Jun ’25US$62.99
US$77.76
+23.44%
17.78%US$145.00US$60.00US$70.2838
May ’25US$66.14
US$76.33
+15.40%
18.82%US$145.00US$56.10US$65.4138
Apr ’25US$65.03
US$72.41
+11.34%
21.34%US$145.00US$56.10US$66.1038
Mar ’25US$60.54
US$71.91
+18.78%
21.30%US$145.00US$56.00US$71.0540
Feb ’25US$62.02
US$75.91
+22.40%
24.66%US$145.00US$56.00US$88.5837
US$54.55
Fair Value
25.9% undervalued intrinsic discount
33
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/09 11:05
End of Day Share Price 2026/02/06 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

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 69 analysts. 40 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