PayPal Holdings Valuation
| PYPL Stock | USD 62.10 1.16 1.83% |
At this time, the company appears to be undervalued. PayPal Holdings holds a recent Real Value of $69.28 per share. The prevailing price of the company is $62.1. Our model determines the value of PayPal Holdings from analyzing the company fundamentals such as Return On Equity of 0.21, shares outstanding of 1.05 B, and Operating Margin of 0.17 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors support picking up undervalued entities and discarding overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting PayPal Holdings' valuation include:
Price Book 3.2303 | Enterprise Value 65.6 B | Enterprise Value Ebitda 9.3148 | Price Sales 2.2838 | Forward PE 12.6103 |
Undervalued
Today
Please note that PayPal Holdings' price fluctuation is very steady at this time. Calculation of the real value of PayPal Holdings is based on 3 months time horizon. Increasing PayPal Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for PayPal Holdings is useful when determining the fair value of the PayPal stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of PayPal Holdings. Since PayPal Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of PayPal Stock. However, PayPal Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 62.1 | Real 69.28 | Target 76.73 | Hype 62.09 |
The real value of PayPal Stock, also known as its intrinsic value, is the underlying worth of PayPal Holdings Company, which is reflected in its stock price. It is based on PayPal Holdings' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of PayPal Holdings' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence PayPal Holdings' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of PayPal Holdings helps investors to forecast how PayPal stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of PayPal Holdings more accurately as focusing exclusively on PayPal Holdings' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use PayPal Holdings' intrinsic value based on its ongoing forecasts of PayPal Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against PayPal Holdings' closest peers. When choosing an evaluation method for PayPal Holdings, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
PayPal Holdings Investments |
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PayPal Valuation Trend
Knowing PayPal Holdings' actual value is paramount for traders to make sound investment determinations. PayPal Holdings' real value is not only important for the investor to make better decisions but also for a more accurate overall view of PayPal Holdings' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both PayPal Holdings' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
PayPal Market Cap
PayPal Holdings is regarded second in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 297.21 Billion. PayPal Holdings totals roughly 65.4 Billion in market capitalization claiming about 22% of equities under Financials industry.PayPal Holdings Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining PayPal Holdings's current stock value. Our valuation model uses many indicators to compare PayPal Holdings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across PayPal Holdings competition to find correlations between indicators driving PayPal Holdings's intrinsic value. More Info.PayPal Holdings is considered to be number one stock in price to earning category among related companies. It is regarded third in price to book category among related companies fabricating about 0.08 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for PayPal Holdings is roughly 12.58 . Price To Book Ratio is expected to rise to 4.98 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value PayPal Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for PayPal Holdings' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the PayPal Holdings' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates PayPal Holdings' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in PayPal Holdings and how it compares across the competition.
About PayPal Holdings Valuation
The stock valuation mechanism determines the current worth of PayPal Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of PayPal Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of PayPal Holdings based exclusively on its fundamental and basic technical indicators. By analyzing PayPal Holdings's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of PayPal Holdings's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of PayPal Holdings. We calculate exposure to PayPal Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to PayPal Holdings's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 13.7 B | 9.6 B | |
| Pretax Profit Margin | 0.18 | 0.13 | |
| Operating Profit Margin | 0.17 | 0.18 | |
| Net Profit Margin | 0.14 | 0.10 | |
| Gross Profit Margin | 0.46 | 0.64 |
8 Steps to conduct PayPal Holdings' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates PayPal Holdings' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct PayPal Holdings' valuation analysis, follow these 8 steps:- Gather financial information: Obtain PayPal Holdings' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine PayPal Holdings' revenue streams: Identify PayPal Holdings' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research PayPal Holdings' industry and market trends, including the size of the market, growth rate, and competition.
- Establish PayPal Holdings' growth potential: Evaluate PayPal Holdings' management, business model, and growth potential.
- Determine PayPal Holdings' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate PayPal Holdings' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
PayPal Holdings Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as PayPal Holdings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.1 B | |
| Quarterly Earnings Growth Y O Y | 0.615 | |
| Forward Price Earnings | 12.6103 |
PayPal Holdings Current Valuation Indicators
Valuation refers to the process of determining the present value of PayPal Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value PayPal we look at many different elements of the entity such as PayPal's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. PayPal Holdings' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final PayPal Holdings' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as PayPal Holdings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use PayPal Holdings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes PayPal Holdings' worth.When determining whether PayPal Holdings is a strong investment it is important to analyze PayPal Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PayPal Holdings' future performance. For an informed investment choice regarding PayPal Stock, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PayPal Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey. For more information on how to buy PayPal Stock please use our How to buy in PayPal Stock guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Complementary Tools for PayPal Stock analysis
When running PayPal Holdings' price analysis, check to measure PayPal Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PayPal Holdings is operating at the current time. Most of PayPal Holdings' value examination focuses on studying past and present price action to predict the probability of PayPal Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PayPal Holdings' price. Additionally, you may evaluate how the addition of PayPal Holdings to your portfolios can decrease your overall portfolio volatility.
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Is PayPal Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PayPal Holdings. If investors know PayPal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PayPal Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.615 | Earnings Share 3.84 | Revenue Per Share 26.991 | Quarterly Revenue Growth 0.087 | Return On Assets 0.0377 |
The market value of PayPal Holdings is measured differently than its book value, which is the value of PayPal that is recorded on the company's balance sheet. Investors also form their own opinion of PayPal Holdings' value that differs from its market value or its book value, called intrinsic value, which is PayPal Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PayPal Holdings' market value can be influenced by many factors that don't directly affect PayPal Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PayPal Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if PayPal Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PayPal Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.