PayPal Holdings Inc (PYPL) fair value: what the stock is really worth
We calculate from audited financials what PayPal Holdings Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
Compare price with fair valuebelow fair value = cheap, above = expensive
Check the quality50 and up solid, 75 and up strong
Watch it or check another stockalert when fair value or trend changes
Financial Services · US · Market cap $51.6B · ISIN US70450Y1038
At a glance
PHPayPal Holdings IncPYPL · US
Price$53.31
Fair Value$77.12
Upside+44.7%
Quality73/100
A solid business, trading 31% below our fair value of $77.12.
As of Sep 7, 2026, the fair value of PayPal Holdings Inc is $77.12 per share against a price of $53.31, so the fair value sits 45% above the price. A model estimate from reported figures, not an analyst target.
✓Healthy Growth (revenue 5y +9.1 %/yr)
✓Solidly profitable · 15.0% net margin
✓Low debt · generates free cash flow
·0.79% dividend yield
!Mixed vs. peers (8/15)
✓Wide moat 69/100
!Weak on dividend: 16 out of 100
Evidence: HighRange $57.29 to $146.46
Fair value as of: Sep 7, 2026
From 13 valuation models · updated 4 days ago
Share price −9.6% over the past month.
This is the short version. In the app for PayPal Holdings Inc:
Watch PayPal Holdings Inc for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card.Watch for free
69 individual criteria per stock, every one traceable See the method →
What matters now
The rarer combination: high quality (73/100) AND below fair value. That earns a closer look rather than a quick verdict.
The price is below even our cautious bear case ($57.29). The market is more pessimistic than our downside scenario.
A fairly wide model range ($57.29 to $146.46) leaves room in how you read the outcome.
For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 7, 2026.
How to read this chart
60‑month range $38.83 – $305.88 · fair‑value band $57.29 – $146.46 · the $53.31 price screens below the $77.12 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 7, 2026.
PayPal Holdings Inc (PYPL) currently trades at $53.31, while our model-based Fair Value estimate is $77.12, implying the stock looks roughly 30.9% undervalued today. The Quality Score stands at 73/100 (solid quality), in the Financial Services sector. Bull case: the DCF Models group reads highest at a median of $104.37 per share, and 9 of the 13 models we run sit above the $53.31 price. Bear case: the Asset-Based group reads lowest at $15.39, and 4 of the 13 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, PayPal Holdings Inc generated revenue of $33.7B at a net margin of 15.0%. Revenue grew 7.2% year over year. It earns a return on equity of 25.1%. Net debt stands at $1.9B. Fundamentals as of Sep 7, 2026
Scenario range: $57.29 (bear) to $146.46 (bull), the price of $53.31 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 32% below its 52-week high and 39% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −51% fair-value upside, at 45%, PYPL screens cheaper than that median.
Fair Value models
Based on fiscal year 2025 figures (about 8 months old). Earnings retained since then ($3.40 per share) are deliberately not added.
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
ModelBear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence
Free, no payment details. Unsubscribe anytime in one click.
Key figures & financial health
P/E ratio10.0
P/S ratio1.58P/E × margin
EPS (TTM)$5.33price ÷ EPS = P/E 10.0
Dividend yield0.8%payout 7.9%
Net margin15.8%FY2025
Return on equity25.1%TTM
More key figures
Profitability
Return on assets (EBIT)6.1%avg 5y
Operating margin18.0%TTM
Growth
Revenue (TTM)$33.7BTTM
Revenue growth (YoY)+7.2%3y avg +6.4%
EPS growth (YoY)−6.2%
Balance sheet & cash flow
Free cash flow$5.6BFY2025
Net debt$1.9BFY2025 · ≈ 0.3 yrs of FCF
Figures from reported company fundamentals · as of Sep 7, 2026. TTM = trailing twelve months.
Quality Score breakdown
Overall quality73/100
Of which business quality 69
· Market factors (momentum, volatility) 41
Profitability53
Margins and returns on capital today
Quality Growth57
Are margins and returns improving?
Cashflow69
Earnings quality: real cash, not paper profit
Fin. Strength59
Balance sheet, leverage, solvency risk
Investment98
Disciplined investing over empire-building
Low Volatility35
Calm price path (market factor)
Momentum56
Price trend over the last 3–12 months (market factor)
52W Momentum24
Distance to the 52-week high (market factor)
Net Issuance100
Buybacks instead of dilution
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide.
Full company description
PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide. The company operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, consumer credit and debit products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
PayPal Holdings Inc reported revenue of $33.2B in FY2025 versus $25.4B in FY2021, a compound +6.9%/yr. Reported net income was $5.2B in FY2025, compounding +5.8%/yr from FY2021.
Growth Quality 89/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$33.2B
Latest YoY
+4.3%
Avg. revenue growth/yr (3Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.4%
Avg. revenue growth/yr (5Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.1%
Avg. revenue growth/yr (13Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.6%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+14.7%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+13.9%
Dividend yield0.8%
Trend ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 9.0% vs 10Y 18.4%, flattening
Operating margin (EBIT) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.15.3% (2020) → 18.3% (2025) · rising
Worst earnings drop38% (2022) · in USD
Revenue+6.9%/yr
FY21$25.4B
FY22$27.5B
FY23$29.8B
FY24$31.8B
FY25$33.2B
Net income+5.8%/yr
FY21$4.2B
FY22$2.4B
FY23$4.2B
FY24$4.1B
FY25$5.2B
Character of growth · EPS growth decomposed (2014-2025)+20.4 % p.a.
Revenue per share+16.7 %
of which total revenue +14.5 % · buybacks/dilution +2.0 %
EBIT margin+1.4 %
Tax rate+1.6 %
Residual (interest, one-offs)+0.2 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation
Quality Score74 · Top 25%
Fair Value upside+40% · Above median
Profitability
Return on equity (TTM)25% · Top 25%
Return on assets5% · Above median
Net margin (TTM)15% · Below median
Operating margin (TTM)18% · Below median
Growth and dividend
Revenue growth7% · Below median
Dividend yield (TTM)0.8% · Below median
Balance sheet
Debt / equity0.49× · Below median
Valuation Multiples vs Credit Services median · lower = cheaper
P/E (TTM)10.0× · Cheaper than median
P/B2.06× · Priciest 25%
P/S (TTM)1.24× · Cheaper than median
P/FCF7.5× · Priciest 25%
EV/EBITDA6.7× · Cheaper than median
PEG0.85× · Pricier than median
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must PayPal Holdings Inc deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
Implied FCF growth, 10 years-2.5 % per year
Achieved revenue growth, 5 years+9.1 % p.a.
Sector median revenue growth+8.2 %
FCF yield on price10.78 %
Discount rate (WACC) in the models10.0 %
The price demands less growth than the company recently delivered: even a weaker business would justify the price. Ranking of the largest stocks →
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
This stockSector peers
VALUE93· sector 34
FUTURE36· sector 41
PAST100· sector 32
HEALTH75· sector 59
DIVIDEND16· sector 56
Insider activity: 42/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
None of the checked exposures detected
Similar stocks
10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Sep 7, 2026).
Is PayPal Holdings Inc (PYPL) overvalued or undervalued?
As of Sep 7, 2026, our model estimates a fair value of $77.12 versus a price of $53.31, about +45% upside (undervalued).
What is the fair value of PYPL?
Our model-based fair value for PayPal Holdings Inc is $77.12 (as of Sep 7, 2026), built from audited fundamentals. The current price: $53.31.
What is the quality score of PYPL?
PayPal Holdings Inc has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for PayPal Holdings Inc (PYPL)?
Our model-based price target is the fair value of $77.12 (as of Sep 7, 2026) from 13 valuation models. Cautious scenario $57.29, optimistic scenario $146.46. It is a calculation from audited fundamentals, not an analyst target.
What is the PayPal Holdings Inc stock forecast for 2026?
Our models put fair value at $77.12, about +45% upside versus a price of $53.31 (undervalued). Cautious scenario $57.29, optimistic scenario $146.46. The calculation is refreshed regularly with new filings.
What is the revenue of PayPal Holdings Inc (PYPL)?
PayPal Holdings Inc reported trailing-twelve-month revenue of about $33.7B (latest available figure, as of Sep 7, 2026).
What is the net profit margin of PYPL?
The net profit margin of PayPal Holdings Inc is about 15.0%, meaning it keeps roughly 15.0% of revenue as net income. Based on the latest reported figures.
Does PayPal Holdings Inc pay a dividend?
PayPal Holdings Inc currently shows a dividend yield of about 0.79% relative to its recent price (as of Sep 7, 2026).
What growth is priced into PayPal Holdings Inc (PYPL)?
For today's price to be fair in a discounted-cash-flow model, PayPal Holdings Inc would have to grow free cash flow by -2.5 % per year for ten years (discount rate 10.0 %, then 2 % perpetual growth). Over the last 5 years revenue grew +9.1 % per year. As of Sep 7, 2026.
What discount rate (WACC) does the fair value of PYPL use?
Our models discount PayPal Holdings Inc at 10.0 %: a base by market capitalisation (large), damped by beta 1.34, country premium for USA. The same rate applies in all 26 models.
What is the intrinsic value of PayPal Holdings Inc (PYPL)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For PayPal Holdings Inc it is $77.12 per share (as of Sep 7, 2026), against a price of $53.31. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is PayPal Holdings Inc stock overvalued or undervalued in 2026?
As of Sep 7, 2026, PYPL trades below its calculated fair value: price $53.31, fair value $77.12, a gap of about +45% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PYPL?
No. The price is what the market pays today ($53.31); the fair value is what the company's own numbers justify ($77.12). For PayPal Holdings Inc the two are $23.81 per share apart. That gap is exactly why we show both numbers side by side.
How much is PayPal Holdings Inc worth?
The market values PayPal Holdings Inc at about $51.6B (market capitalisation, as of Sep 7, 2026). Per share that is $53.31; our models calculate a fair value of $77.12 per share.
What do the bullish and bearish scenarios say about PYPL?
Our models span a range for PayPal Holdings Inc: cautious scenario $57.29, base $77.12, optimistic $146.46 per share (as of Sep 7, 2026, price $53.31). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PYPL?
PayPal Holdings Inc trades at a price-to-earnings ratio of 10.0 (as of Sep 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $77.12 is built from several models across several years. Other multiples: PEG 0.9, P/B 2.1, P/S 1.2, EV/EBITDA 6.7.
What is the PEG ratio of PYPL?
The PEG ratio of PayPal Holdings Inc is 0.85 (P/E divided by earnings growth, as of Sep 7, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of PayPal Holdings Inc (PYPL)?
Balance-sheet figures for PayPal Holdings Inc (as of Sep 7, 2026): return on equity 25.1%, debt of 0.49 per unit of equity. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is PYPL from its 52-week high?
PayPal Holdings Inc trades at $53.31, about 32% below its 52-week high of $78.82 and 39% above the low of $38.22 (as of Sep 7, 2026). Distance from the high says nothing about value: that is what the fair value of $77.12 is for.
Which stocks are comparable to PayPal Holdings Inc?
From the same area (Financial Services) we also value Visa Inc, Mastercard Incorporated, American Express Company, Capital One Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is PayPal Holdings Inc stock attractive at the current price?
The data as of Sep 7, 2026: price $53.31, calculated fair value $77.12 (+45%), Quality Score 73/100, from 13 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PYPL calculated?
We run PayPal Holdings Inc through 13 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $77.12, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 32.6 % above its aggregate fair value. PayPal Holdings Inc currently trades 45 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on <a href="/is-it-worth-investing-now/">is it worth investing now</a>.
Free · no account needed
Watch PayPal Holdings Inc in the live analysis
One click puts PayPal Holdings Inc on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.
PayPal Holdings Inc
PYPL · US