Financial - Credit Services · NASDAQ
Current Price
$50.94
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on PayPal Holdings, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company's payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 100 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.
Earnings Yield
11.03%
ROE (TTM)
25.9%
Based on trailing twelve-month data, PYPL has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of PYPL reflects how much investors pay per dollar of PayPal Holdings, Inc.'s earnings. This metric is most useful when compared to Financial - Credit Services peers and the company's own historical range.
Whether PYPL is overvalued depends on comparing its PE ratio to Financial - Credit Services peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value PayPal Holdings, Inc. using PE: (1) Compare the current PE against the Financial - Credit Services median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how PYPL is priced versus Financial - Credit Services peers. DCF provides an absolute value based on projected free cash flows. For PYPL, with a strong ROE of 25.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
