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Company Analysis

PayPal Holdings, Inc. PYPL

A comprehensive view of key metrics, scores, and financial health for PayPal Holdings, Inc.

Overview of PayPal Holdings, Inc.

PYPL NMS
Financial Services Credit Services Framework: Software & SaaS Large Cap
PayPal Holdings, Inc. (PYPL), is a Large Cap company, in the Credit Services industry, last closed at $58.78, about 196.4% undervalued vs fair value, -11.3% 1Y return, ranked 571/1078 in sector.
Metrics P/E 10.8× Rev Growth 4.3% ROE 25.7% Gross Margin 46.6% Div Yield 0.24%
USD 58.78
3.10%
(Delayed)
• Vol 90d: 44.6%
52-Week Range
Market Cap
$48.83B
Enterprise Value
$53.92B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Weak
Health
Fair
Efficiency
Fair
Valuation
Fair
Growth
Fair
Profitability
Weak
Health
Fair
Efficiency
Fair
Valuation
Fair
Completeness: 100%
Confidence: 98%
Updated: Oct 31
Top Beats
No strong beats yet

Quick Facts

Website https://www.paypal.com
HQ San Jose, CA
Employees 23,800
Fiscal year Dec 31

Next Events

Dividend Dec 24

Fair Value Snapshot

Bear Base Bull
$159
$174
$191
Current: $58.78 +196% vs base

Engine Room Money Flow™

Large Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$33.2B
4.3%%
Gross Profit
$15.5B
5.5%%
Operating Income (GAAP)
$6.1B
13.9%%
Operating Cash Flow
$6.4B
-13.9%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
46.6%
Fair

Gross Profit / Revenue — pricing power and product moat (SaaS benchmark: >70%)

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$6.2B
111.1% of FCF

Where It Leaks

Cash Flow Health some concerns
Moderate efficiency issues detected. Review active leaks below for improvement areas.
4
Active Leaks
4/4
Improving
1
High Impact
0
Critical
Locked Leak
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Locked Leak
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Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating PayPal Holdings, Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
69
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Premium Software Margins Gross margin quality is strong versus peers (score 0.86), consistent with premium software economics.
  • Consistent Subscription Growth Revenue consistency is strong (score 0.80), pointing to a sticky customer base.

Key risks

  • Weak Product Reinvestment R&D commitment lags peers (score 0.34), weakening the innovation moat.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Recurring Revenue Stickiness

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Signals, strengths and risks for Innovation Engine

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Signals, strengths and risks for Cash Scalability

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Balance Sheet Resilience

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 94% Coverage
Trade-Off Triangle Visualization A ternary plot showing PYPL's balance between Growth (28.6%), Profitability (38.3%), and Safety (33.1%). Growth 29% Safety 33% Profitability 38%

Click axes to expand details. Marker shows current allocation.

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Growth

47th percentile vs peers
47
Key Signals
Rev Growth YoY 4.3% 36p Revenue CAGR 3Y 6.4% 44p Buyback % -7.3% 93p EPS Growth YoY 35.4% 70p TSR -31.4% 30p
Strengths
  • Interest Coverage Ratio in top 20% of peers (15.27, 82th percentile)
  • Superior capital returns - 2 return metrics above peer median
  • Operating Margin in top 20% of peers (18.3%, 86th percentile)
  • Consistently strong margins across 3 metrics
Risks

No significant risks identified for this axis.

Profitability

63th percentile vs peers
63
Key Signals
Strengths
Risks
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Safety

54th percentile vs peers
55
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for PayPal Holdings, Inc..

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$174.20
- - -
+196.4% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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