PayPal Holdings, Inc.

NasdaqGS:PYPL Stock Report

Market Cap: US$87.4b

PayPal Holdings Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 ($87.13) is trading below our estimate of fair value ($105.28)

Significantly Below Fair Value: PYPL is trading below fair value, but not by a significant amount.

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 Ratio19.7x
EarningsUS$4.43b
Market CapUS$87.35b

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 Average48.1x
FI Fiserv
38.3x18.6%US$117.2b
SQ Block
52.8x27.6%US$55.6b
FIS Fidelity National Information Services
80.6x25.2%US$43.9b
GPN Global Payments
20.9x10.8%US$28.5b
PYPL PayPal Holdings
19.7x6.2%US$87.4b

Price-To-Earnings vs Peers: PYPL is good value based on its Price-To-Earnings Ratio (19.7x) compared to the peer average (48.1x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FOA Finance of America Companies
1.5x-136.3%US$596.07m
PMIR PMI Group
0.09xn/aUS$518.61k
ACGX Alliance Creative Group
1.3xn/aUS$280.75k
No more companies available in this PE range
PYPL 19.7xIndustry Avg. 18.0xNo. of Companies12PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PYPL is expensive based on its Price-To-Earnings Ratio (19.7x) compared to the US Diversified Financial industry average (18x).

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 Ratio19.7x
Fair PE Ratio21.8x

Price-To-Earnings vs Fair Ratio: PYPL is good value based on its Price-To-Earnings Ratio (19.7x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).

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$87.13
US$93.69
+7.5%
12.8%US$125.00US$70.00n/a37
Dec ’25US$86.77
US$90.71
+4.5%
12.3%US$125.00US$70.00n/a36
Nov ’25US$77.25
US$88.65
+14.8%
12.8%US$125.00US$70.00n/a36
Oct ’25US$77.47
US$82.42
+6.4%
14.7%US$125.00US$68.00n/a34
Sep ’25US$72.43
US$80.60
+11.3%
17.2%US$145.00US$62.40n/a34
Aug ’25US$65.31
US$78.56
+20.3%
17.4%US$145.00US$60.00n/a38
Jul ’25US$57.81
US$77.76
+34.5%
17.8%US$145.00US$60.00n/a38
Jun ’25US$62.99
US$77.76
+23.4%
17.8%US$145.00US$60.00n/a38
May ’25US$66.14
US$76.33
+15.4%
18.8%US$145.00US$56.10n/a38
Apr ’25US$65.03
US$72.41
+11.3%
21.3%US$145.00US$56.10n/a38
Mar ’25US$60.54
US$71.91
+18.8%
21.3%US$145.00US$56.00n/a40
Feb ’25US$62.02
US$75.91
+22.4%
24.7%US$145.00US$56.00n/a37
Jan ’25US$61.41
US$76.58
+24.7%
25.8%US$145.00US$55.00n/a41
Dec ’24US$59.65
US$77.42
+29.8%
25.3%US$145.00US$55.00US$86.7742
Nov ’24US$51.66
US$81.89
+58.5%
24.4%US$145.00US$55.00US$77.2544
Oct ’24US$58.46
US$90.57
+54.9%
28.3%US$200.00US$58.00US$77.4739
Sep ’24US$63.57
US$91.38
+43.7%
26.9%US$200.00US$58.00US$72.4340
Aug ’24US$75.53
US$93.95
+24.4%
28.0%US$200.00US$58.00US$65.3143
Jul ’24US$66.73
US$93.74
+40.5%
28.1%US$200.00US$58.00US$57.8143
Jun ’24US$63.05
US$97.23
+54.2%
26.7%US$200.00US$58.00US$62.9941
May ’24US$75.11
US$103.65
+38.0%
22.6%US$200.00US$80.00US$66.1440
Apr ’24US$75.94
US$103.50
+36.3%
22.9%US$200.00US$70.00US$65.0340
Mar ’24US$73.82
US$103.53
+40.2%
22.2%US$200.00US$70.00US$60.5442
Feb ’24US$82.91
US$105.19
+26.9%
21.7%US$200.50US$75.00US$62.0244
Jan ’24US$71.22
US$105.44
+48.0%
18.3%US$160.00US$75.00US$61.4142
Dec ’23US$78.53
US$106.40
+35.5%
17.9%US$160.00US$75.00US$59.6541

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:11
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

PayPal Holdings, Inc. is covered by 86 analysts. 43 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