We’ve recently updated our valuation analysis.

PayPal Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PYPL 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/Revenue3.7x
Enterprise Value/EBITDA20.9x
PEG Ratio1.9x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average37.5x
FIS Fidelity National Information Services
49.3x23.2%US$45.6b
V Visa
31.8x10.4%US$474.9b
MA Mastercard
36.1x13.0%US$357.6b
FISV Fiserv
32.8x14.5%US$68.7b
PYPL PayPal Holdings
43.1x22.5%US$94.5b

Price-To-Earnings vs Peers: PYPL is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the peer average (37.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.0%
n/an/an/a

Price-To-Earnings vs Industry: PYPL is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the US IT industry average (28.5x)


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.

PYPL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.1x
Fair PE Ratio40.2x

Price-To-Earnings vs Fair Ratio: PYPL is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the estimated Fair Price-To-Earnings Ratio (40.2x).


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 ($86.96) is trading below our estimate of fair value ($112.51)

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


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$86.96
US$105.99
+21.9%
21.9%US$200.50US$75.00n/a44
Jan ’24US$71.22
US$106.27
+49.2%
18.6%US$160.00US$75.00n/a42
Dec ’23US$78.53
US$107.26
+36.6%
18.1%US$160.00US$75.00n/a41
Nov ’23US$83.11
US$119.73
+44.1%
13.7%US$160.00US$85.00n/a41
Oct ’23US$86.07
US$120.35
+39.8%
13.1%US$160.00US$85.00n/a40
Sep ’23US$92.66
US$120.23
+29.8%
12.8%US$160.00US$85.00n/a39
Aug ’23US$88.57
US$112.10
+26.6%
23.1%US$220.00US$75.00n/a41
Jul ’23US$71.40
US$119.80
+67.8%
23.3%US$220.00US$80.00n/a44
Jun ’23US$82.48
US$120.71
+46.3%
22.8%US$220.00US$82.00n/a44
May ’23US$87.93
US$125.10
+42.3%
21.7%US$220.00US$85.00n/a44
Apr ’23US$116.67
US$176.08
+50.9%
18.1%US$245.00US$107.00n/a42
Mar ’23US$106.51
US$179.25
+68.3%
16.8%US$245.00US$110.00n/a41
Feb ’23US$175.80
US$248.57
+41.4%
17.3%US$342.00US$151.00US$82.9142
Jan ’23US$188.58
US$274.81
+45.7%
16.0%US$366.00US$151.00US$71.2242
Dec ’22US$179.32
US$280.67
+56.5%
15.1%US$366.00US$151.00US$78.5342
Nov ’22US$231.28
US$325.65
+40.8%
11.3%US$380.00US$147.00US$83.1141
Oct ’22US$264.65
US$328.80
+24.2%
11.1%US$380.00US$147.00US$86.0742
Sep ’22US$286.75
US$328.36
+14.5%
10.9%US$380.00US$147.00US$92.6643
Aug ’22US$275.53
US$328.17
+19.1%
11.4%US$380.00US$139.00US$88.5744
Jul ’22US$289.00
US$315.15
+9.0%
11.5%US$375.00US$139.00US$71.4043
Jun ’22US$259.27
US$313.13
+20.8%
11.7%US$375.00US$139.00US$82.4842
May ’22US$262.29
US$307.92
+17.4%
12.4%US$375.00US$139.00US$87.9343
Apr ’22US$247.54
US$306.78
+23.9%
12.3%US$375.00US$139.00US$116.6742
Mar ’22US$273.63
US$306.08
+11.9%
12.7%US$375.00US$139.00US$106.5143
Feb ’22US$241.85
US$254.01
+5.0%
15.5%US$350.00US$124.00US$175.8043

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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