PayPal Holdings, Inc. (PYPL)

Financials · Transaction & Payment Processing Services · US stock · S&P 500 component

$57.54 ▲ +0.33 (0.59%)

At close 22 Oct 2026 · USD · Volume 7,499,012

Compare with MA

Interactive chart Research report Forecast ranges Pro workspace SEC filings Historical data

Fair valueUndervalued

$83 +44.4% to fair value

$42fair band $71–$101$125

Day's range

$56.81 – $57.61

52-week range

$38.46 – $79.22

About PayPal Holdings, Inc.

PayPal operates a digital payments platform that lets consumers and merchants send, receive and accept money online and in stores. Its brands include PayPal, Venmo and Braintree, which handle checkout, peer-to-peer transfers and payment processing for businesses. The company earns money mainly from transaction fees charged on the payments it processes, along with currency conversion charges and income from credit and other financial services offered to account holders.

Sales reached $33.7 billion in the last twelve months, having grown 6.4% a year over the past three years. Operating profit equals 17.9% of revenue. Return on invested capital is 23%. Net debt is 0.1 times of EBITDA. It pays a dividend, and the yield is 1.0%. Overall, the X-Ray Score is 65 out of 100.

Price chart

Interactive chart Historical data & CSV

52-wk range $38.46 – $79.22Volume 7,499,012Daily, split-adjusted

Vitals

Market cap$52.9B

52-week range$38.46 – $79.22

Volume (last day)7,499,012

P/E (TTM)10.9

EBIT / EV yield11.2%

Free-cash-flow yield10.4%

Dividend yield1.0%

Revenue (TTM)$33.7B

Net income (TTM)$5.1B

Operating margin17.9%

Return on capital22.9%

Debt incl. leases$10.1B

Cash & securities$9.3B

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$83middle half of models $73 – $91

Undervalued +44.4% to fair value

Average of the 11 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.

Price $58

Undervalued < $71Fair $71 – $101Overvalued > $101

P/E multiple

$64

P/B multiple

$71

P/S multiple

$75

EV/EBITDA multiple

$71

EV/EBIT multiple

$88

EV/revenue multiple

$78

10-year DCF, EBITDA exit

$93

5-year DCF, EBITDA exit

$83

10-year DCF, revenue exit

$94

5-year DCF, revenue exit

$83

10-year DCF, growth exit · not used

$120

5-year DCF, growth exit

$114

Earnings power value · not used

$125

Growth the price implies

-9.0%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.

What this means

Average business at a low price

Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better ✓ 66 The price is not above fair value $83 fair value Debt looks manageable 0.1× EBITDA Revenue has been growing 6.4% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Financials peers. Open a lens to see the numbers behind it.

Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data

Valuation Strong

84/100

Cheap against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield11.2%

Free-cash-flow yield10.4%

Fair value vs price1.4×

Growth Fair

54/100

Growing at a typical pace for its sector.

See the numbers →

Revenue growth (3y)6.4%

EPS growth (3y)37.3%

Growth consistency100%

Profitability Fair

64/100

Returns on capital are typical for its sector.

See the numbers →

Return on invested capital22.9%

Operating margin17.9%

Financial health Fair

69/100

Balance sheet is in typical shape for its sector.

See the numbers →

Piotroski F-Score9 / 9

Net debt / EBITDA0.1×

Interest cover13.4×

Dividends Weak

37/100

Dividend is modest or less certain than peers.

See the numbers →

Dividend yield1.0%

Dividends vs free cash flow9%

Quarterly results: last 6 quarters

+4.2%

Dec '24

+1.2%

Mar '25

+5.1%

Jun '25

+7.3%

Sep '25

+3.7%

Dec '25

+7.2%

Mar '26

Revenue against the same quarter a year earlier. Latest quarter revenue $8.4B, diluted EPS $1.21.

Compare with peers

JKHY Jack Henry & Associate...63 MA Mastercard Inc57 CPAY Corpay, Inc.55 FISV Fiserv Inc49

Other Transaction & Payment Processing Services companies by X-Ray Score.

SWOT analysis: PayPal Holdings, Inc.

Strengthsinside the company

Return on invested capital is 22.9%, against a median of 7.2% for industry peers.
Earnings per share have compounded at 37.3% a year over three years.
Free cash flow equals 10.4% of the market value, which funds dividends, buybacks or debt paydown.
Net debt is only 0.1x EBITDA.

Weaknessesinside the company

No clear weakness in the figures we track.

Opportunitiesvaluation and setting

Trades at 10.5x earnings, 56% below the 23.7x median of industry peers.
The price is 44% below our fair value estimate, with the gap larger than the margin we allow for error.
Our Market Compass rates the backdrop for Financials as favourable.

Threatsvaluation and setting

No specific threat is flagged by our checks; general market and interest-rate risk still applies.

Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.

Compare PYPL with peers and sector

Medians of 7 Transaction & Payment Processing Services peers and of 70 Financials stocks in our universe. Largest peers (X-Ray Score): MA 57, XYZ 45, CPAY 55, FISV 49, GPN 29, FIS 36.

Metric	PYPL	Peers	Sector
X-Ray Score (out of 100)	65	49	50
Valuation	84	51	52
Growth	54	54	54
Profitability	63	46	48
Financial health	69	22	50
Dividends	37	43	54

Sector leaders: highest X-Ray Score in Financials

PYPL ranks #5 of 71 in Financials and #1 of 8 in Transaction & Payment Processing Services by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.

Company	X-Ray Score
#1 PGR Progressive Corp	69
#2 SCHW Schwab Charles Corp	68
#3 AMP Ameriprise Financial Inc	67
#4 AIZ Assurant, Inc.	66
#5 PYPL PayPal Holdings, Inc. (this stock)	65

Metric	PYPL	Peers	Sector
P/E ratio	10.5x	23.7x	13.9x
PEG ratio	0.28	1.99	1.22
Price / book	2.6x	2.2x	2.2x
Price / sales	1.6x	2.3x	3.1x
EV / EBITDA	7.7x	15.0x	10.9x
Price / free cash flow	9.6x	16.8x	17.1x
Dividend yield	1.0%	1.3%	1.9%
Gap to our fair value	+44.4%	+21.2%	+5.6%

Metric	PYPL	Peers	Sector
Price change, 1 month	+8.8%	+8.5%	+3.4%
Price change, 3 months	+3.9%	+9.1%	−0.3%
Price change, 6 months	+13.0%	+9.0%	+6.8%
Price change, 1 year	−14.5%	+4.1%	+14.9%

Metric	PYPL	Peers	Sector
Market value	$52.9B	$27.1B	$46.7B
Revenue (last 12 months)	$33.7B	$12.2B	$15.6B
EBITDA (last 12 months)	$7.0B	$3.7B	$4.4B
Net income (last 12 months)	$5.1B	$1.1B	$3.2B
Free cash flow (last 12 months)	$5.5B	$2.8B	$2.2B

Metric	PYPL	Peers	Sector
Revenue growth, last year	+4.3%	+5.4%	+6.9%
Revenue growth, 3 years a year	+6.4%	+7.0%	+8.7%
EPS growth, 3 years a year	+37.3%	+17.4%	+12.5%
Free cash flow growth, 3 years a year	+2.9%	+21.7%	+13.6%
Dividend growth	–	+0.2%	+5.4%

Metric	PYPL	Peers	Sector
Gross margin	–	45.0%	54.1%
EBITDA margin	20.7%	34.1%	31.4%
Operating margin	17.9%	22.3%	29.3%
Net margin	15.0%	19.8%	22.1%
Return on invested capital	22.9%	7.2%	13.4%
Return on equity	25.3%	21.0%	15.3%

Metric	PYPL	Peers	Sector
Net debt / EBITDA	0.1x	4.5x	1.1x
Interest cover	13.4x	5.0x	50.0x
Current ratio	1.3x	1.0x	1.0x
Piotroski F-score (0 to 9)	9	5	7

Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.

Factor ratings for PYPL

Each factor is rated by where PYPL stands among the 71 Financials stocks in our universe.

Rating against the sector

Goodthe top third of these stocks

Averagethe middle third of these stocks

Badthe bottom third of these stocks

"Beats" is the share of those stocks it is ahead of.

Against its own history

The last columns set today's figure against the company's own median of its last five financial years:

▲ Betterbetter than its usual level

▼ Worseworse than its usual level

≈ In linewithin its usual range

For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.

In total: 11 Good · 5 Average · 5 Bad of 21 Growth: 1 · 1 · 1 Profitability: 2 · 0 · 2 Financial strength: 3 · 0 · 1 Valuation: 4 · 1 · 0 Cash flow: 0 · 3 · 1 Efficiency: 1 · 0 · 0

Factor	PYPL	Rating	Sector median	Own 5-year median	Against own history
Growth
Revenue growth, 3 years a year	+6.4%	Average beats 41%	+8.3%	–	–
Revenue growth, last year	+4.3%	Bad beats 25%	+6.9%	+8.2%	▼ Worse
EPS growth, 3 years a year	+37.3%	Good beats 91%	+12.7%	–	–
Profitability
Operating margin	17.9%	Bad beats 25%	29.1%	16.8%	≈ In line
Net margin	15.0%	Bad beats 32%	21.8%	14.3%	≈ In line
Return on invested capital	22.9%	Good beats 72%	13.5%	–	–
Return on equity	25.3%	Good beats 81%	15.7%	20.2%	▲ Better
Financial strength
Net debt / EBITDA	0.1x	Good beats 71%	1.1x	-0.2x	≈ In line
Interest cover	13.4x	Bad beats 31%	50.0x	13.9x	≈ In line
Current ratio	1.26	Good beats 85%	1.05	1.28	≈ In line
Piotroski F-score	9 / 9	Good beats 92%	7 / 9	–	–
Valuation
P/E ratio	10.5x	Good beats 80%	13.8x	21.4x	▲ Better
Price / book	2.6x	Average beats 38%	2.2x	4.1x	▲ Better
Price / sales	1.6x	Good beats 85%	3.1x	2.8x	▲ Better
EV / EBITDA	7.7x	Good beats 75%	10.8x	13.8x	▲ Better
Free cash flow yield	10.4%	Good beats 76%	5.8%	6.2%	▲ Better
Cash flow
Free cash flow margin	16.3%	Bad beats 29%	23.2%	18.6%	▼ Worse
Cash from operations / net income	1.26	Average beats 53%	1.25	1.39	≈ In line
Free cash flow growth, 3 years a year	+2.9%	Average beats 35%	+12.7%	–	–
Accruals (lower is better)	−1.7%	Average beats 64%	−1.0%	–	–
Efficiency
Days sales outstanding	9 days	Good beats 92%	53 days	12 days	≈ In line

These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.

Fundamentals checklist

● 9 Good · ● 4 Average · ● 2 Bad

Cash quality

Earnings backed by cashAverage

Free-cash-flow yieldGood

Risk models

Altman Z''Average

Piotroski F-ScoreGood

Growth

EPS growth (3y)Good

Free-cash-flow growth (3y)Average

Revenue growth (3y)Average

Growth consistencyGood

Balance sheet

Current ratioGood

Net debt / EBITDAGood

Interest coverBad

Valuation

Fair value vs priceGood

EBIT / EV yieldGood

Profitability

Return on invested capitalGood

Operating marginBad

Each check is graded against the company's sector, not a fixed number. Checklist score 65/100.

Financials

	FY21	FY22	FY23	FY24	FY25
Revenue	$25.4B	$27.5B	$29.8B	$31.8B	$33.2B
Operating income	$4.3B	$3.8B	$5.0B	$5.3B	$6.1B
Net income	$4.2B	$2.4B	$4.2B	$4.1B	$5.2B
Operating cash flow	$5.8B	$5.8B	$4.8B	$7.5B	$6.4B
Operating margin	16.8%	13.9%	16.9%	16.7%	18.3%
Free cash flow	$4.9B	$5.1B	$4.2B	$6.8B	$5.6B
Diluted EPS	$3.52	$2.09	$3.84	$3.99	$5.41

Fiscal years, from SEC filings.

Technical summary

Daily

Strongly bullish

12 bullish · 1 neutral · 3 bearish

Weekly

Bullish

8 bullish · 1 neutral · 3 bearish

Monthly

Bearish

2 bullish · 1 neutral · 5 bearish

Moving averages (daily)

SMA 10	56.61	Bullish
EMA 10	56.53	Bullish
SMA 20	55.33	Bullish
EMA 20	55.79	Bullish
SMA 50	55.88	Bullish
EMA 50	55.00	Bullish
SMA 100	52.55	Bullish
EMA 100	53.62	Bullish
SMA 200	49.80	Bullish
EMA 200	53.80	Bullish

Oscillators (daily)

RSI (14)	63.50	Neutral
MACD (12, 26)	0.74	Bullish
Momentum (12)	5.36	Bullish
Stochastic %K (14)	92.48	Bearish
Williams %R (14)	-7.52	Bearish
CCI (20)	111.1	Bearish

Pivot points (classic, last session)

56.23

56.52

57.03

Pivot

57.32

57.83

58.12

58.63

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

Dividends

Paid, last 12 months

0.56 USD

Yield on today's price

0.97%

Frequency

Quarterly

Next ex-dividend date

Not announced

Ex-dividend date	Amount per share
4 Sep 2026	0.1400
4 Jun 2026	0.1400
4 Mar 2026	0.1400
19 Nov 2025	0.1400

Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.

ETFs that hold PYPL

ETF	Share of the fund
FDN First Trust Dow Jones Internet Index	1.57%
QQQE Direxion NASDAQ-100 Equal Weighted Ind...	1.30%
RDVI FT Cboe Vest Rising Dividend Achievers...	1.18%
RDVY First Trust Rising Dividend Achievers	0.89%
SPHB Invesco S&P 500 High Beta	0.71%
IYJ iShares U.S. Industrials	0.61%
XLF Financial Select Sector SPDR	0.50%
VOE Vanguard Mid-Cap Value	0.39%

The eight funds with the largest weight in PYPL among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.