Is PayPal Holdings, Inc. (PYPL) undervalued or overvalued?

Our model estimates a fair value of about $159 against a price of $56.70 (Data under review, +0% to fair value). It blends a 10-year DCF, sector multiples and earnings-power value and is a model estimate, not advice.

What is the X-Ray Score for PYPL?

PayPal Holdings, Inc. has an X-Ray Score of 65 out of 100, built from valuation, growth, profitability, financial health and dividend lenses ranked against Financials peers.

Where does the data for PYPL come from?

Financial statements come from SEC EDGAR filings, prices from exchange price feeds, and industry betas and equity risk premium from Damodaran Online (NYU Stern).

PayPal Holdings, Inc. (PYPL)

Financials · Transaction & Payment Processing Services · US stock · S&P 500 component

$56.70 ▼ -0.46 (0.80%)

At close 16 Oct 2026 · USD · Volume 10,986,300

Compare with JKHY Historical data Research report SEC filings

Fair valueData under review

$159

$80fair band $111–$207$239

Day's range

$56.41 – $57.81

52-week range

$38.12 – $78.34

About PayPal Holdings, Inc.

PayPal operates a digital payments platform that lets consumers and merchants send, receive and accept money online and in stores. Its brands include PayPal, Venmo and Braintree, which handle checkout, peer-to-peer transfers and payment processing for businesses. The company earns money mainly from transaction fees charged on the payments it processes, along with currency conversion charges and income from credit and other financial services offered to account holders.

Sales reached $33.7 billion in the last twelve months, having grown 6.4% a year over the past three years. Operating profit equals 17.9% of revenue. Return on invested capital is 23%. Net debt is 0.1 times of EBITDA. It pays a dividend, and the yield is 1.0%. Overall, the X-Ray Score is 65 out of 100.

Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.

Price chart

Historical data & CSV

52-wk range $38.12 – $78.34Volume 10,986,300Daily, split-adjusted

Vitals

Market cap$52.2B

52-week range$38.12 – $78.34

Volume (last day)10,986,300

P/E (TTM)10.7

EBIT / EV yield11.4%

Free-cash-flow yield10.5%

Dividend yield1.0%

Revenue (TTM)$33.7B

Net income (TTM)$5.1B

Operating margin17.9%

Return on capital22.9%

Debt incl. leases$10.1B

Cash & securities$9.3B

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$159model spread $136 – $170

Data under review +0.0% to fair value

Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.

Price $57

Undervalued < $111Fair $111 – $207Overvalued > $207

10-year DCF (market-scaled)

$248

Peer multiples

$75

Earnings power floor (not blended)

$75

Fundamentals-adjusted multiple

$155

Growth the price implies

-9.5%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.

What this means

Read the lenses below

The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better ✓ 66 The price is not above fair value $159 fair value Debt looks manageable 0.1× EBITDA Revenue has been growing 6.4% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Financials peers. Open a lens to see the numbers behind it.

Valuation Strong

84/100

Cheap against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield11.4%

Free-cash-flow yield10.5%

Fair value vs price2.8×

Growth Fair

54/100

Growing at a typical pace for its sector.

See the numbers →

Revenue growth (3y)6.4%

EPS growth (3y)37.3%

Growth consistency100%

Profitability Fair

64/100

Returns on capital are typical for its sector.

See the numbers →

Return on invested capital22.9%

Operating margin17.9%

Financial health Fair

69/100

Balance sheet is in typical shape for its sector.

See the numbers →

Piotroski F-Score9 / 9

Net debt / EBITDA0.1×

Interest cover13.4×

Dividends Weak

37/100

Dividend is modest or less certain than peers.

See the numbers →

Dividend yield1.0%

Dividends vs free cash flow9%

Quarterly results: last 6 quarters

+4.2%

Dec '24

+1.2%

Mar '25

+5.1%

Jun '25

+7.3%

Sep '25

+3.7%

Dec '25

+7.2%

Mar '26

Revenue against the same quarter a year earlier. Latest quarter revenue $8.4B, diluted EPS $1.21.

Compare with peers

JKHY Jack Henry & Associate...65 MA Mastercard Inc60 CPAY Corpay, Inc.54 FISV Fiserv Inc49

Other Transaction & Payment Processing Services companies by X-Ray Score.

Fundamentals checklist

● 9 Good · ● 4 Average · ● 2 Bad

Cash quality

Earnings backed by cashAverage

Free-cash-flow yieldGood

Risk models

Altman Z''Average

Piotroski F-ScoreGood

Growth

EPS growth (3y)Good

Free-cash-flow growth (3y)Average

Revenue growth (3y)Average

Growth consistencyGood

Balance sheet

Current ratioGood

Net debt / EBITDAGood

Interest coverBad

Valuation

Fair value vs priceGood

EBIT / EV yieldGood

Profitability

Return on invested capitalGood

Operating marginBad

Each check is graded against the company's sector, not a fixed number. Checklist score 65/100.

Financials

	FY21	FY22	FY23	FY24	FY25
Revenue	$25.4B	$27.5B	$29.8B	$31.8B	$33.2B
Operating income	$4.3B	$3.8B	$5.0B	$5.3B	$6.1B
Net income	$4.2B	$2.4B	$4.2B	$4.1B	$5.2B
Operating cash flow	$5.8B	$5.8B	$4.8B	$7.5B	$6.4B
Operating margin	16.8%	13.9%	16.9%	16.7%	18.3%
Free cash flow	$4.9B	$5.1B	$4.2B	$6.8B	$5.6B
Diluted EPS	$3.52	$2.09	$3.84	$3.99	$5.41

Fiscal years, from SEC filings.

Technical summary

Daily

Strongly bullish

12 bullish · 3 neutral · 1 bearish

Weekly

Bullish

8 bullish · 1 neutral · 3 bearish

Monthly

Bearish

2 bullish · 1 neutral · 5 bearish

Moving averages (daily)

SMA 10	55.67	Bullish
EMA 10	55.74	Bullish
SMA 20	54.45	Bullish
EMA 20	55.13	Bullish
SMA 50	56.03	Bullish
EMA 50	54.63	Bullish
SMA 100	52.04	Bullish
EMA 100	53.33	Bullish
SMA 200	49.83	Bullish
EMA 200	53.67	Bullish

Oscillators (daily)

RSI (14)	59.90	Neutral
MACD (12, 26)	0.51	Bullish
Momentum (12)	7.94	Bullish
Stochastic %K (14)	79.95	Neutral
Williams %R (14)	-20.05	Neutral
CCI (20)	148.1	Bearish

Pivot points (classic, last session)

54.74

55.57

56.14

Pivot

56.97

57.54

58.37

58.94

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.