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PayPal Holdings

Nasdaq:PYPL
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PYPL
Nasdaq
$118B
Market Cap
  1. Home
  2. US
  3. Software
Company description

PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. The last earnings update was 40 days ago. More info.


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PYPL Share Price and Events
7 Day Returns
2.8%
NasdaqGS:PYPL
3%
US IT
2.4%
US Market
1 Year Returns
24%
NasdaqGS:PYPL
15.5%
US IT
1.9%
US Market
PYPL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PayPal Holdings (PYPL) 2.8% 5.6% 19.3% 24% 142.7% -
US IT 3% 4.7% 19.4% 15.5% 79.7% 94.9%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • PYPL outperformed the IT industry which returned 15.5% over the past year.
  • PYPL outperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
PYPL
Industry
5yr Volatility vs Market
Related Companies

Value

 Is PayPal Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PayPal Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for PayPal Holdings.

NasdaqGS:PYPL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 41 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:PYPL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 21%) (1.7%))
1.052
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.052 * 5.96%)
9%

Discounted Cash Flow Calculation for NasdaqGS:PYPL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for PayPal Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:PYPL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9%)
2019 3,883.33 Analyst x8 3,562.67
2020 4,724.80 Analyst x8 3,976.74
2021 5,831.50 Analyst x2 4,502.94
2022 5,655.00 Analyst x1 4,006.08
2023 6,424.00 Analyst x1 4,175.08
2024 6,867.93 Est @ 6.91% 4,095.03
2025 7,256.40 Est @ 5.66% 3,969.40
2026 7,603.14 Est @ 4.78% 3,815.65
2027 7,919.73 Est @ 4.16% 3,646.34
2028 8,215.43 Est @ 3.73% 3,470.16
Present value of next 10 years cash flows $39,220.09
NasdaqGS:PYPL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $8,215.43 × (1 + 2.73%) ÷ (9% – 2.73%)
$134,595.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $134,595.97 ÷ (1 + 9%)10
$56,852.68
NasdaqGS:PYPL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $39,220.09 + $56,852.68
$96,072.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $96,072.76 / 1,173.21
$81.89
NasdaqGS:PYPL Discount to Share Price
Calculation Result
Value per share (USD) From above. $81.89
Current discount Discount to share price of $100.27
= -1 x ($100.27 - $81.89) / $81.89
-22.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of PayPal Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PayPal Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PayPal Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:PYPL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.74
NasdaqGS:PYPL Share Price ** NasdaqGS (2019-03-18) in USD $100.27
United States of America IT Industry PE Ratio Median Figure of 78 Publicly-Listed IT Companies 30.16x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PayPal Holdings.

NasdaqGS:PYPL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PYPL Share Price ÷ EPS (both in USD)

= 100.27 ÷ 1.74

57.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PayPal Holdings is overvalued based on earnings compared to the US IT industry average.
  • PayPal Holdings is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does PayPal Holdings's expected growth come at a high price?
Raw Data
NasdaqGS:PYPL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 57.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 41 Analysts
13.9%per year
United States of America IT Industry PEG Ratio Median Figure of 64 Publicly-Listed IT Companies 2.43x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NasdaqGS:PYPL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 57.71x ÷ 13.9%

4.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PayPal Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PayPal Holdings's assets?
Raw Data
NasdaqGS:PYPL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $13.11
NasdaqGS:PYPL Share Price * NasdaqGS (2019-03-18) in USD $100.27
United States of America IT Industry PB Ratio Median Figure of 122 Publicly-Listed IT Companies 4.33x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NasdaqGS:PYPL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PYPL Share Price ÷ Book Value per Share (both in USD)

= 100.27 ÷ 13.11

7.65x

* Primary Listing of PayPal Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PayPal Holdings is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess PayPal Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. PayPal Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is PayPal Holdings expected to perform in the next 1 to 3 years based on estimates from 41 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PayPal Holdings expected to grow at an attractive rate?
  • PayPal Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • PayPal Holdings's earnings growth is positive but not above the United States of America market average.
  • PayPal Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:PYPL Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:PYPL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 41 Analysts 13.9%
NasdaqGS:PYPL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 41 Analysts 13.3%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:PYPL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 41 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:PYPL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 30,599 8,266 3,566 3
2022-12-31 27,592 8,378 3,844 5
2021-12-31 24,796 7,459 3,532 13
2020-12-31 21,172 6,001 2,937 36
2019-12-31 17,982 5,363 2,382 41
NasdaqGS:PYPL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 15,451 5,483 2,057
2018-09-30 14,969 4,202 2,093
2018-06-30 14,525 538 2,037
2018-03-31 13,804 1,431 1,922
2017-12-31 13,094 2,531 1,795
2017-09-30 12,331 3,601 1,565
2017-06-30 11,759 3,396 1,508
2017-03-31 11,273 3,171 1,420
2016-12-31 10,842 3,158 1,401
2016-09-30 10,417 2,963 1,378
2016-06-30 10,008 2,814 1,356
2016-03-31 9,655 2,740 1,338

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PayPal Holdings's earnings are expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).
  • PayPal Holdings's revenue is expected to grow by 13.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:PYPL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 41 Analyst Estimates (S&P Global) See Below

All data from PayPal Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PYPL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 3.34 3.62 3.06 2.00
2022-12-31 3.14 3.81 2.55 3.00
2021-12-31 3.02 3.39 2.59 8.00
2020-12-31 2.47 2.88 2.22 18.00
2019-12-31 2.01 2.50 1.76 22.00
NasdaqGS:PYPL Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.74
2018-09-30 1.76
2018-06-30 1.70
2018-03-31 1.60
2017-12-31 1.49
2017-09-30 1.30
2017-06-30 1.25
2017-03-31 1.18
2016-12-31 1.16
2016-09-30 1.13
2016-06-30 1.11
2016-03-31 1.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • PayPal Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess PayPal Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PayPal Holdings has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has PayPal Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PayPal Holdings's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PayPal Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • PayPal Holdings's 1-year earnings growth is less than its 5-year average (14.6% vs 20%)
  • PayPal Holdings's earnings growth has not exceeded the US IT industry average in the past year (14.6% vs 15.3%).
Earnings and Revenue History
PayPal Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PayPal Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PYPL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 15,451.00 2,057.00 2,784.00 1,071.00
2018-09-30 14,969.00 2,093.00 2,646.00 1,049.00
2018-06-30 14,525.00 2,037.00 2,535.00 1,020.00
2018-03-31 13,804.00 1,922.00 2,418.00 997.00
2017-12-31 13,094.00 1,795.00 2,295.00 953.00
2017-09-30 12,331.00 1,565.00 2,178.00 901.00
2017-06-30 11,759.00 1,508.00 2,100.00 876.00
2017-03-31 11,273.00 1,420.00 2,043.00 853.00
2016-12-31 10,842.00 1,401.00 2,003.00 834.00
2016-09-30 10,417.00 1,378.00 1,954.00 827.00
2016-06-30 10,008.00 1,356.00 1,902.00 809.00
2016-03-31 9,655.00 1,338.00 1,841.00 802.00
2015-12-31 9,248.00 1,228.00 1,817.00 792.00
2015-09-30 8,885.00 1,147.00 1,744.00 823.00
2015-06-30 8,602.00 1,080.00 1,671.00 858.00
2015-03-31 8,288.00 1,056.00 1,595.00 877.00
2014-12-31 8,025.00 419.00 1,691.00 747.00
2013-12-31 6,727.00 955.00 1,176.00 727.00
2012-12-31 5,662.00 778.00 1,007.00 677.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • PayPal Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • PayPal Holdings used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • PayPal Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PayPal Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PayPal Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is PayPal Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PayPal Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PayPal Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • PayPal Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of PayPal Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 16.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PayPal Holdings Company Filings, last reported 2 months ago.

NasdaqGS:PYPL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 15,386.00 1,998.00 9,109.00
2018-09-30 15,115.00 2,000.00 9,587.00
2018-06-30 15,019.00 2,000.00 4,965.00
2018-03-31 14,641.00 3,000.00 6,306.00
2017-12-31 15,994.00 1,000.00 5,695.00
2017-09-30 15,432.00 0.00 4,921.00
2017-06-30 14,998.00 0.00 4,091.00
2017-03-31 14,626.00 0.00 4,055.00
2016-12-31 14,712.00 0.00 4,975.00
2016-09-30 14,192.00 0.00 5,088.00
2016-06-30 13,817.00 0.00 4,957.00
2016-03-31 13,598.00 0.00 4,767.00
2015-12-31 13,759.00 0.00 3,411.00
2015-09-30 13,214.00 0.00 4,299.00
2015-06-30 12,740.00 102.00 4,408.00
2015-03-31 8,640.00 868.00 2,375.00
2014-12-31 8,248.00 1,093.00 2,230.00
2013-12-31 7,390.00 1,103.00 1,925.00
2012-12-31
  • PayPal Holdings's level of debt (13%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (14.9% vs 13% today).
  • Debt is well covered by operating cash flow (274.4%, greater than 20% of total debt).
  • PayPal Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess PayPal Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PayPal Holdings has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is PayPal Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from PayPal Holdings dividends. Estimated to be 0% next year.
If you bought $2,000 of PayPal Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate PayPal Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate PayPal Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:PYPL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 41 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:PYPL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 5.00
2020-12-31 0.00 6.00
2019-12-31 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as PayPal Holdings has not reported any payouts.
  • Unable to verify if PayPal Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of PayPal Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as PayPal Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of PayPal Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess PayPal Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PayPal Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PayPal Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of PayPal Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan Schulman
COMPENSATION $19,218,634
AGE 60
TENURE AS CEO 3.7 years
CEO Bio

Mr. Daniel H. Schulman, also known as Dan, has been the President of PayPal Holdings, Inc. since September 30, 2014 and has been its Chief Executive Officer since July 2015. Mr. Schulman joined PayPal in 2014 to lead the PayPal into its next phase as an independent business. He is Director of Verizon Communications Inc. since September 6, 2018. He served as of Enterprise Growth at American Express Company from August 2010 to September 30, 2014. At American Express, he was responsible for the its global strategy to expand alternative mobile and online payment services, form new partnerships and build revenue streams beyond the traditional card and travel businesses. He was also responsible for the American Express's Business Development, Mergers and Acquisitions unit. He has a record of high performance in the consumer-marketing arena and almost two decades of experience in the wireless industry. Mr. Schulman served as an Advisor at Greycroft Partners LLC. He served as the President of Prepaid Group at Sprint Corporation (Sprint Nextel Corporation) from 2009 to August 23, 2010. He served as President of Sprint Prepaid Group at Boost Mobile LLC. Mr. Schulman served as Founding Chief Executive Officer of Virgin Mobile USA, L.P. From May 2000 to May 2001, he served as the President and Chief Executive Officer of The Priceline Group Inc. (alternate name, Priceline.com Incorporated) since May 2000 and also served as its Chief Operating Officer since July 1999. He spent the early part of his career with AT&T, where he ultimately led its consumer long distance business. From December 1998 to July 1999, he served as the President of Consumer Markets Division of AT&T Corp. He served as a Member of AT&T Operations Group and served as its President of the Long Distance Division. From March 1997 to November 1998, Mr. Schulman served as the President of AT&T WorldNet Service. From December 1995 to February 1997, he served as the Vice President of Business Services Marketing of AT&T Business Markets Division and from May 1994 to November 1995, he served as a Small Business Marketing Vice President of AT&T Business Markets Division. He served for more than 18 years at&T. He has been the Non-Executive Chairman and Independent Director of Symantec Corporation since January 23, 2013 and March 2000 respectively. He has been Director at PayPal Holdings, Inc. since July 2015 and serves as Director at Xoom Corporation. Mr. Schulman had been an Independent Director of Flex Ltd. from June 18, 2009 until August, 2018. He served as a Director of The Telx Group, Inc. since February 2010 and Virgin Mobile USA, Inc. from 2001 to 2009. He served as Lead Director at Symantec Corporation from 2012 to January 23, 2013. Mr. Schulman served as a Director of Net2Phone, Inc., from September 1999 to September 2004. He served as a Director of iVillage Inc. He served as a Director of Veritas Software Corp. He serves on the Board of Autism Speaks and Rutgers University. Mr. Schulman serves as a Director of New Jersey Technology Council. He serves on the boards of several charitable organizations, including Teach for America. He received the New Jersey Ernst & He serves as a Trustee and Member of Board of Governors at Rutgers, The State University of New Jersey. He received Young Entrepreneur of the Year Award, saluting executives' efforts in business excellence and community improvement. He is named to Business Week's Top 20 People to Watch in media and FierceWireless' Top 25 Most Powerful People in the global wireless industry. Mr. Schulman served as Chief Executive Officer of Virgin Mobile USA, a cellular phone service provider, from 2001 to 2009. Mr. Schulman is a member of the boards of directors of Verizon Communications Inc. and Flextronics International Ltd. Mr. Schulman holds an M.B.A., majoring in Finance and International Business from New York University’s Leonard N. Stern School of Business and B.A in Economics from Middlebury College

CEO Compensation
  • Dan's compensation has been consistent with company performance over the past year.
  • Dan's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the PayPal Holdings management team in years:

2.9
Average Tenure
46
Average Age
  • The tenure for the PayPal Holdings management team is about average.
Management Team

Dan Schulman

TITLE
President
COMPENSATION
$19M
AGE
60
TENURE
3.7 yrs

John Rainey

TITLE
CFO & Executive VP of Global Customer Operations
COMPENSATION
$9M
AGE
47
TENURE
3.6 yrs

Bill Ready

TITLE
Executive VP & COO
COMPENSATION
$26M
AGE
38
TENURE
2.5 yrs

Adele Pentland

TITLE
Executive VP and Chief Business Affairs & Legal Officer
COMPENSATION
$7M
AGE
46
TENURE
2.5 yrs

Aaron Anderson

TITLE
Chief Accounting Officer & VP

Sri Shivananda

TITLE
CTO & Senior VP
AGE
45
TENURE
2.9 yrs

Brad Strock

TITLE
Chief Information Officer
AGE
55
TENURE
5.2 yrs

Gabrielle Rabinovitch

TITLE
Vice President of Investor Relations

Aaron Karczmer

TITLE
Executive VP of Risk
AGE
46
TENURE
2.2 yrs

Franz Paasche

TITLE
Senior Vice President of Corporate Affairs
Board of Directors Tenure

Average tenure and age of the PayPal Holdings board of directors in years:

3.7
Average Tenure
56.5
Average Age
  • The tenure for the PayPal Holdings board of directors is about average.
Board of Directors

John Donahoe

TITLE
Chairman of the Board
COMPENSATION
$530K
AGE
57
TENURE
3.7 yrs

Dan Schulman

TITLE
President
COMPENSATION
$19M
AGE
60
TENURE
3.7 yrs

Dave Dorman

TITLE
Director
COMPENSATION
$360K
AGE
64
TENURE
3.8 yrs

Gail McGovern

TITLE
Director
COMPENSATION
$370K
AGE
66
TENURE
3.8 yrs

David Moffett

TITLE
Lead Independent Director
COMPENSATION
$430K
AGE
66
TENURE
3.7 yrs

Jonathan Christodoro

TITLE
Director
COMPENSATION
$348K
AGE
42
TENURE
3.7 yrs

Frank Yeary

TITLE
Director
COMPENSATION
$350K
AGE
54
TENURE
3.7 yrs

Wences Casares

TITLE
Director
COMPENSATION
$348K
AGE
45
TENURE
3.2 yrs

Belinda Johnson

TITLE
Director
COMPENSATION
$347K
AGE
51
TENURE
2.2 yrs

Ann Sarnoff

TITLE
Director
COMPENSATION
$279K
AGE
56
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Jan 19 Buy Frank Yeary Individual 17. Oct 18 17. Oct 18 8 $81.22 $650
X
Management checks
We assess PayPal Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PayPal Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is PayPal Holdings Inc's (NASDAQ:PYPL) 14% Better Than Average?

To keep the lesson grounded in practicality, we'll use ROE to better understand PayPal Holdings Inc (NASDAQ:PYPL). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

All You Need To Know About PayPal Holdings Inc's (NASDAQ:PYPL) Financial Health

PayPal Holdings Inc (NASDAQ:PYPL), a large-cap worth US$102.92b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an adundance of stock in the public market available for trading. … In times of low liquidity in the market, these firms won’t be left high and dry.

Simply Wall St -

What Should You Know About PayPal Holdings Inc's (NASDAQ:PYPL) Capital Returns?

and looking to gauge the potential return on investment in PayPal Holdings Inc (NASDAQ:PYPL). … Therefore, looking at how efficiently PayPal Holdings is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Breaking Down PayPal Holdings Inc's (NASDAQ:PYPL) Ownership Structure

Today, I will be analyzing PayPal Holdings Inc’s (NASDAQ:PYPL) recent ownership structure, an important but not-so-popular subject among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.

Simply Wall St -

Is PayPal Holdings Inc's (NASDAQ:PYPL) CEO Pay Fair?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Why PayPal Holdings Inc's (NASDAQ:PYPL) ROE Of 13.13% Does Not Tell The Whole Story

and want to learn about Return on Equity using a real-life example. … PayPal Holdings Inc (NASDAQ:PYPL) performed in line with its data processing and outsourced services industry on the basis of its ROE – producing a return of 13.13% relative to the peer average of 14.77% over the past 12 months. … But what is more interesting is whether PYPL can sustain or improve on this level of return

Simply Wall St -

Intrinsic Calculation For PayPal Holdings Inc (NASDAQ:PYPL) Shows Investors Are Overpaying

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of PayPal Holdings Inc (NASDAQ:PYPL) as an investment opportunity. … by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF).

Simply Wall St -

Want To Invest In PayPal Holdings Inc (NASDAQ:PYPL) Today? Read This First

PayPal Holdings Inc (NASDAQ:PYPL) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $85.12 is based on unrealistic expectations. … Investors in PayPal Holdings have been patiently waiting for the uptick in earnings. … If you believe the analysts covering the stock then the following year will be very interesting

Simply Wall St -

What Is PayPal Holdings Inc's (NASDAQ:PYPL) Share Price Doing?

Let's talk about the popular PayPal Holdings Inc (NASDAQ:PYPL). … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at PayPal Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

What Is Driving PayPal Holdings Inc's (NASDAQ:PYPL) Margins In The Future?

As analysts forecast … PayPal Holdings Inc (NASDAQ:PYPL) to … earnings growth of 17.45%

Simply Wall St -

Company Info

Description

PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and iZettle products. The company's Payments Platform allows consumers to send payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. It also offers gateway services that enable merchants to accept payments online with credit or debit cards. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.

Details
Name: PayPal Holdings, Inc.
PYPL
Exchange: NasdaqGS
Founded: 1998
$117,637,703,229
1,173,209,367
Website: http://www.paypal.com
Address: PayPal Holdings, Inc.
2211 North First Street,
San Jose,
California, 95131,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PYPL Common Stock Nasdaq Global Select US USD 06. Jul 2015
DB 2PP Common Stock Deutsche Boerse AG DE EUR 06. Jul 2015
XTRA 2PP Common Stock XETRA Trading Platform DE EUR 06. Jul 2015
LSE 0R9U Common Stock London Stock Exchange GB USD 06. Jul 2015
SWX PYPL Common Stock SIX Swiss Exchange CH CHF 06. Jul 2015
WBAG PYPL Common Stock Wiener Boerse AG AT EUR 06. Jul 2015
BMV PYPL * Common Stock Bolsa Mexicana de Valores MX MXN 06. Jul 2015
Number of employees
Current staff
Staff numbers
21,800
PayPal Holdings employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 00:39
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/16
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.