PayPal (PYPL) BMO (ZPYP) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of PayPal (PYPL) BMO C$16.94, price C$7.74, upside +118.9%, quality 73 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Sep 29, 2026.
How to read this chart
11‑month range C$5.73 – C$9.69 · fair‑value band C$10.91 – C$24.68 · the C$7.74 price screens below the C$16.94 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Sep 29, 2026.
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PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide.
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PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide. It 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 products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.
Stock analysis
PayPal (PYPL) BMO CDR (CAD Hedged) (ZPYP) currently trades at C$7.74, while our model-based Fair Value estimate is C$16.94, implying the stock looks roughly 54.3% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of C$24.11 per share, and 20 of the 24 models we run sit above the C$7.74 price.
Bear case: the Asset-Based group reads lowest at C$2.69, and 4 of the 24 models stay below the price. Evidence for this calculation is medium.
Scenario range: C$10.91 (bear) to C$24.68 (bull), the price of C$7.74 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 73/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
PayPal (PYPL) BMO CDR (CAD Hedged) reported revenue of $33.2B in FY2025 versus $27.5B in FY2022, a compound +6.4%/yr. Reported net income was $5.2B in FY2025, compounding +29.3%/yr from FY2022.
Key figures
Market cap C$55.7B (≈ $39.1B) · P/E ratio 0.9 · P/S ratio 0.14 · EPS (TTM) C$6.96 · Dividend yield 1.8% · Net margin 15.8% · Return on equity 24.4% · Return on assets (EBIT) 6.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 51 out of 100 (low confidence).
What moves the price
For context, the median of 10 Financial Services peers we cover trades at −31% fair-value upside, at 119%, ZPYP screens cheaper than that median.
Fair Value models
Bear C$10.91Fair Value C$16.94Bull C$24.68
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (C$5.16 per share) are deliberately not added.Bear ⓘ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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.3%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+6.4%
’22
’23
’24
’25
What shareholders gained per year (last 3 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+25.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+23.2%
Dividend (yield on the price)1.8%
Profit margin 2022 to 2025 ⓘ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% → 19%
Compare PayPal (PYPL) BMO CDR (CAD Hedged) with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Credit Services · 329 stocks
Beats the industry median on 7/11 measures
Overall it ranks above its industry peers.
Valuation
Quality Score73 · Top 25%
Fair Value upside+118.9% · Top 25%
Profitability
Return on equity (TTM)24.4% · Top 25%
Return on assets4.7% · Above median
Net margin (TTM)15.0% · Below median
Operating margin (TTM)19.2% · Below median
Growth and dividend
Revenue growth7.3% · Below median
Dividend yield (TTM)1.8% · Below median
Balance sheet
Debt / equity0.49× · Below median
Valuation Multiplesvs Credit Services median · lower = cheaper
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Is PayPal (PYPL) BMO (ZPYP) overvalued or undervalued?
As of Sep 29, 2026, our model estimates a fair value of C$16.94 versus a price of C$7.74, about +119% upside (undervalued).
What is the fair value of ZPYP?
Our model-based fair value for PayPal (PYPL) BMO CDR (CAD Hedged) is C$16.94 (as of Sep 29, 2026), built from audited fundamentals. The current price: C$7.74.
What is the quality score of ZPYP?
PayPal (PYPL) BMO CDR (CAD Hedged) 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 (PYPL) BMO (ZPYP)?
Our model-based price target is the fair value of C$16.94 (as of Sep 29, 2026) from 24 valuation models. Cautious scenario C$10.91, optimistic scenario C$24.68. It is a calculation from audited fundamentals, not an analyst target.
What is the PayPal (PYPL) BMO CDR (CAD Hedged) stock forecast for 2026?
Our models put fair value at C$16.94, about +119% upside versus a price of C$7.74 (undervalued). Cautious scenario C$10.91, optimistic scenario C$24.68. The calculation is refreshed regularly with new filings.
What is the revenue of PayPal (PYPL) BMO (ZPYP)?
PayPal (PYPL) BMO CDR (CAD Hedged) reported trailing-twelve-month revenue of about $32.9B (latest available figure, as of Sep 29, 2026).
Does PayPal (PYPL) BMO CDR (CAD Hedged) pay a dividend?
PayPal (PYPL) BMO CDR (CAD Hedged) currently shows a dividend yield of about 1.81% relative to its recent price (as of Sep 29, 2026).
What is the intrinsic value of PayPal (PYPL) BMO (ZPYP)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For PayPal (PYPL) BMO CDR (CAD Hedged) it is C$16.94 per share (as of Sep 29, 2026), against a price of C$7.74. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is PayPal (PYPL) BMO CDR (CAD Hedged) stock overvalued or undervalued in 2026?
As of Sep 29, 2026, ZPYP trades below its calculated fair value: price C$7.74, fair value C$16.94, a gap of about +119% (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 ZPYP?
No. The price is what the market pays today (C$7.74); the fair value is what the company's own numbers justify (C$16.94). For PayPal (PYPL) BMO CDR (CAD Hedged) the two are C$9.20 per share apart. That gap is exactly why we show both numbers side by side.
How much is PayPal (PYPL) BMO CDR (CAD Hedged) worth?
The market values PayPal (PYPL) BMO CDR (CAD Hedged) at about C$55.7B (market capitalisation, as of Sep 29, 2026). Per share that is C$7.74; our models calculate a fair value of C$16.94 per share.
What do the bullish and bearish scenarios say about ZPYP?
Our models span a range for PayPal (PYPL) BMO CDR (CAD Hedged): cautious scenario C$10.91, base C$16.94, optimistic C$24.68 per share (as of Sep 29, 2026, price C$7.74). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ZPYP?
PayPal (PYPL) BMO CDR (CAD Hedged) trades at a price-to-earnings ratio of 0.9 (as of Sep 29, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of C$16.94 is built from several models across several years. Other multiples: PEG 0.1.
What is the PEG ratio of ZPYP?
The PEG ratio of PayPal (PYPL) BMO CDR (CAD Hedged) is 0.08 (P/E divided by earnings growth, as of Sep 29, 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 (PYPL) BMO (ZPYP)?
Balance-sheet figures for PayPal (PYPL) BMO CDR (CAD Hedged) (as of Sep 29, 2026): return on equity 24.4%, 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.
Which stocks are comparable to PayPal (PYPL) BMO CDR (CAD Hedged)?
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 (PYPL) BMO CDR (CAD Hedged) stock attractive at the current price?
The data as of Sep 29, 2026: price C$7.74, calculated fair value C$16.94 (+119%), Quality Score 73/100, from 24 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 ZPYP calculated?
We run PayPal (PYPL) BMO CDR (CAD Hedged) through 24 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 C$16.94, 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 14.5 % above its aggregate fair value. PayPal (PYPL) BMO CDR (CAD Hedged) currently trades 54 % 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 is it worth investing now.
What is the share price of PayPal (PYPL) BMO (ZPYP)?
The closing price on Oct 1, 2026 was C$7.74. Our model-based fair value is C$16.94, about +119% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with PayPal (PYPL) BMO CDR (CAD Hedged) right 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 (C$10.91). The market is more pessimistic than our downside scenario. A fairly wide model range (C$10.91 to C$24.68) 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.
Key figures of PayPal (PYPL) BMO CDR (CAD Hedged)
How large is the market capitalisation of PayPal (PYPL) BMO (ZPYP)?
The market capitalisation of PayPal (PYPL) BMO CDR (CAD Hedged) is C$55.7B (≈ $39.1B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of PayPal (PYPL) BMO (ZPYP)?
The price-to-sales ratio of PayPal (PYPL) BMO CDR (CAD Hedged) is 0.14 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of PayPal (PYPL) BMO (ZPYP)?
Earnings per share at PayPal (PYPL) BMO CDR (CAD Hedged) are C$6.96 (price ÷ EPS = P/E 0.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of PayPal (PYPL) BMO (ZPYP)?
The dividend yield of PayPal (PYPL) BMO CDR (CAD Hedged) is 1.8% (payout 2.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of PayPal (PYPL) BMO (ZPYP)?
The net margin of PayPal (PYPL) BMO CDR (CAD Hedged) is 15.8% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of PayPal (PYPL) BMO (ZPYP)?
The return on equity (ROE) of PayPal (PYPL) BMO CDR (CAD Hedged) is 24.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of PayPal (PYPL) BMO (ZPYP)?
On an EBIT basis the return on assets of PayPal (PYPL) BMO CDR (CAD Hedged) is 6.6% (avg 4y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of PayPal (PYPL) BMO (ZPYP)?
The operating margin of PayPal (PYPL) BMO CDR (CAD Hedged) is 19.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at PayPal (PYPL) BMO (ZPYP)?
Revenue at PayPal (PYPL) BMO CDR (CAD Hedged) is growing +7.3% versus a year earlier (3y avg +6.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at PayPal (PYPL) BMO (ZPYP)?
Earnings per share at PayPal (PYPL) BMO CDR (CAD Hedged) are growing +31.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does PayPal (PYPL) BMO (ZPYP) generate?
The free cash flow of PayPal (PYPL) BMO CDR (CAD Hedged) is $5.6B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does PayPal (PYPL) BMO (ZPYP) carry?
The net debt of PayPal (PYPL) BMO CDR (CAD Hedged) is $1.9B (fiscal year 2025, ≈ 0.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Sep 29, 2026