---
title: PayPal (PYPL) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/pypl
ticker: PYPL
as_of: 2026-10-17
sector: Financial Services
industry: Financial - Credit Services
---
# PayPal (PYPL)

PayPal (PYPL) closed at $56.70 on Oct 16, 2026, undervalued by 50% vs its model value of $113.06 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $56.70 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $113.06 |
| Price vs model | undervalued by 50% vs model |
| Range of that model | $77.71 – $218.92 |
| Market value | $48.5B |
| P/E (fiscal 2025) | 10.5 |
| Net margin (fiscal 2025) | 15.8% |
| Free cash flow (fiscal 2025) | $5.6B |
| Dividend yield (trailing twelve months) | 0.99% |
| Beta | 1.28 |
| Cost of capital (WACC) | 8.98% |
| Business classification | Mature & Stable (Low/slowing growth (~6% recent), Moderate margins (16% net margin), Highly cyclical earnings, Strong FCF yield (11.5%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Highest free cash flow yield | #22 | 11.5% | https://sweetvaluelab.com/lists/highest-free-cash-flow-yield |
| Lowest P/E | #20 | 10.5× | https://sweetvaluelab.com/lists/lowest-pe |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 0.99% |
| Dividends per share, last 12 months | $0.56 |
| Dividends / free cash flow (fiscal 2025) | 2.3% |
| Raised | — |
| Growth | — |
| Latest payment | $0.14, ex-date Sep 4, 2026, paid Sep 25, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| Trailing twelve months (to Sep 4, 2026) | $0.56 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $113.06 | $77.71 | $218.92 |
| DCF · Perpetuity growth · 10y | cross check | $119.90 | $84.38 | $224.32 |
| DCF · EBITDA exit · 5y | cross check | $129.09 | $93.85 | $170.51 |
| DCF · EBITDA exit · 10y | cross check | $132.76 | $96.24 | $181.19 |
| P/E · peers | cross check | $106.98 | $55.61 | $159.30 |
| P/E · own history | cross check | $109.14 | $86.67 | $153.79 |
| PEG | sanity check | $43.11 | $43.11 | $43.11 |
| EV/EBITDA · peers | cross check | $113.22 | $65.13 | $193.64 |
| EV/Revenue · peers | cross check | $228.71 | $79.51 | $389.97 |
| Earnings power value | cross check | $44.42 | $37.78 | $53.73 |
| Dividend discount | cross check | $2.65 | $1.89 | $4.06 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 7 open-market sales ($474,188.1); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 15, 2026 | Natali Chris | SVP, Chief Accounting Officer | Tax withholding | 1,291 | $72,425.1 |
| Oct 15, 2026 | Natali Chris | SVP, Chief Accounting Officer | Option/RSU exercise | 2,727 | $0 |
| Oct 15, 2026 | Natali Chris | SVP, Chief Accounting Officer | Option/RSU exercise | 2,727 | $0 |
| Oct 15, 2026 | Keller Frank | Pres., Checkout Sol. & PayPal | Option/RSU exercise | 1,639 | $0 |
| Oct 15, 2026 | Keller Frank | Pres., Checkout Sol. & PayPal | Tax withholding | 907 | $50,882.7 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Jul 28, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1633917/000163391726000082/pypl-20260630.htm |
| Jul 28, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1633917/000163391726000080/pypl-20260728.htm |
| May 21, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 5.07 Submission of Matters to a Shareholder Vote; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1633917/000163391726000076/pypl-20260519.htm |
| May 19, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/1633917/000163391726000073/pypl-2026formsx8xuploadwor.htm |
| May 15, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1633917/000119312526226653/d930458d8k.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Lindsell Train | 2026-06-30 | 3,162,672 | $136.6M |
| Yacktman | 2026-06-30 | 2,317,304 | $100.1M |
| First Pacific Advisors | 2026-06-30 | 2,137,851 | $92.3M |
| Einhorn | 2026-06-30 | 1,424,320 | $61.5M |

9 tracked managers in all.

## About

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.

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Source: https://sweetvaluelab.com/stocks/pypl (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.