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PayPal Holdings, Inc. — Intrinsic Value & Fair Price

PYPL
NASDAQFinancial ServicesFinancial - Credit ServicesCIK 0001633917paypal.comAbout PYPL
Last close · Oct 16, 202656.70−0.46 (−0.80%)
Market cap$48.5B
Model value · DCF · Perpetuity growth · 5y
113.06
PayPal closed at $56.70 — undervalued by 50% vs model.
77.71the model's range218.92

DCF · Perpetuity growth · 5y leads for mature & stable — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
2.65 – 228.71
Wall St. target
56.00 1% above
Below model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
0.99%
Past 2 years
low 0.98%high 1.08%
Dividends per share, a year at a time
$0.56TTM
Dividends / free cash flow, FY2025
2.3%
Raised
—
Growth
—
Last change
—
Every payment, with ex-dates · latest $0.14, paid Sep 25, 2026

Research on PYPL

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How it is valued

Valued asMature & Stable
Low/slowing growth (~6% recent)Moderate margins (16% net margin)Highly cyclical earningsStrong FCF yield (11.5%)
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
10.5×
EV / EBITDA
6.6×
FCF yield
10.2%
Dividend yield, TTM
0.99%
Beta
1.28
Cost of capital (WACC)
8.98%
Full financials

Analyst actions

third-party, quoted
10-09Barclays · target56.00
09-25Deutsche Bank · target55.00
08-31RBC Capital · target70.00
07-24Truist Securities · “Hold” from “Sell”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
5 more companies list PYPL as a comparable
Side by side:vs XYZ

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just PYPL. No account.

About PayPal

PayPal Holdings, Inc. provides a worldwide technological framework that facilitates digital financial transactions for both businesses and individual users. The company offers a wide array of payment services through well-known brands such as PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy. Through its extensive platform, consumers are able to send and receive funds across roughly 200 global markets and in approximately 100 different currencies. Additionally, users can transfer money to their bank accounts in 56 currencies and maintain account balances in 25 distinct currencies within their PayPal accounts. Founded in 1998, the company's corporate headquarters are situated in San Jose, California.

CEO
Enrique J. Lores
Headquarters
San Jose, CA
Employees
23,800
IPO
2015-07-06
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.