A Business at a Glance
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PayPal Holdings, Inc.
PYPL
$54.3B
Mkt Cap
$56.15
+0.27%
PayPal Holdings, Inc. (PYPL) has a current P/E ratio of 10.4, compared to its historical median P/E of 41.5. The stock is currently considered Cheap based on its historical valuation range.
PayPal Holdings, Inc. (PYPL) has a 5-year average return on invested capital (ROIC) of 20.3%. This indicates strong capital allocation and a potential competitive advantage.
PayPal Holdings, Inc. (PYPL) has a market capitalization of $50.1B. It is classified as a large-cap stock.
Yes, PayPal Holdings, Inc. (PYPL) pays a dividend with a trailing twelve-month yield of 0.25%. The company also returns capital through share buybacks, with a buyback yield of 12.08%.
Based on historical P/E analysis, PayPal Holdings, Inc. (PYPL) appears cheap. The current P/E of 10.4 is 75% below its historical median of 41.5. The estimated fair value CAGR (P/E method) is 11.7%.
PayPal Holdings, Inc. (PYPL) operates in the Services-Business Services, Nec industry, within the Industrials sector.
PayPal Holdings, Inc. (PYPL) reported annual revenue of $33.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
PayPal operates a global two-sided payments platform connecting 439 million active accounts across approximately 200 markets, enabling consumers and merchants to transact online and in-person. The company earns revenues primarily through transaction fees charged on the $1.79 trillion in total payment volume processed annually, supplemented by fees for currency conversion, instant transfers, cryptocurrency facilitation, and value-added services including consumer and merchant credit products, subscription fees, and gateway services. The platform's consumer segment offers digital wallets (PayPal and Venmo), person-to-person payment solutions, buy-now-pay-later products, and debit/credit cards with rewards, while the merchant segment provides branded and unbranded checkout solutions, point-of-sale capabilities, business financing, payouts, and risk management tools tailored to enterprises and small-to-medium businesses. PayPal's competitive strengths include its trusted dual-brand recognition, technology-agnostic approach enabling flexible payment options, proprietary end-to-end platform with fraud and risk management capabilities, global scale across 200 markets, and regulatory licenses supporting operations worldwide. The business model is transaction-volume dependent with unit economics influenced by funding mix (credit/debit card funding carries higher costs than bank account or internal balance funding), merchant and product mix, and geographic region, while the two-sided network structure enables data-driven innovation and customer protection programs that differentiate the platform from competitors.
【Strategic investments and execution focus】 Management is implementing a multi-year transformation program targeting at least $1.5 billion in gross run-rate cost savings over two to three years through organizational realignment, AI and automation deployment, and vendor rationalization, with savings reinvested in growth initiatives and business headwind mitigation. For 2026, the company expects targeted growth investments to represent approximately a three-point headwind to transaction margin dollar growth while driving durable long-term benefits, with approximately two-thirds of spending directed toward branded checkout and buy-now-pay-later initiatives focused on scaling new experiences, improving merchant presentment, and increasing consumer selection. Management is prioritizing narrowing the gap with market performance in branded checkout through enhanced product delivery, biometric adoption, and competitive placement, while simultaneously scaling omnichannel solutions, growing Venmo, improving payment service provider profitability, and establishing new growth vectors in agentic commerce, ads, stablecoins, and digital wallet interoperability. The company is no longer providing specific multi-year growth outlooks given the more demanding macroeconomic environment and slower-than-anticipated merchant adoption, instead providing annual guidance as a starting point while maintaining conviction in the long-term impact of current strategic initiatives.
| Metric | Target | Period |
|---|---|---|
| Gross run-rate cost savings | at least $1.5 billion | over the next two to three years |
| Non-transaction operating expense growth | approximately 3% | 2026 |
| Non-GAAP EPS | down low single digits to slightly positive | 2026 |
| Branded checkout TPV growth | slightly positive to low single-digit | 2026 |
| Share repurchases | approximately $6 billion | 2026 |
| Adjusted free cash flow | at least $6 billion | 2026 |
Gross run-rate cost savings (over the next two to three years): “We expect to see at least $1.5 billion of gross run rate savings over the next two to three years.”
Non-transaction operating expense growth (2026): “Approximately 3% growth in non-transaction operating expenses”
Non-GAAP EPS (2026): “non-GAAP EPS ranging from down low single digits to slightly positive”
Branded checkout TPV growth (2026): “we continue to expect our targeted growth investments to represent approximately a three-point headwind to transaction margin dollars growth in 2026, while driving durable long-term benefits in the years ahead. We have conviction in the impact these initiatives can drive in the future, but it will take time to keep scaling our programs and experiences. For online branded checkout specifically, our guidance continues to reflect slightly positive to low single-digit branded checkout TPV growth for the full year.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: FY2026 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 33.7B | 33.2B | 31.8B | 29.8B | 27.5B | 25.4B |
| Net Income | 5.1B | 5.2B | 4.1B | 4.2B | 2.4B | 4.2B |
| EPS | $5.45 | $5.41 | $3.99 | $3.84 | $2.09 | $3.52 |
| Free Cash Flow | 5.5B | 5.6B | 6.8B | 4.2B | 5.1B | 4.9B |
| ROIC | 24.9% | 23.7% | 21.1% | 20.0% | 13.5% | 23.1% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.47 | 0.53 | 0.52 | 0.49 | 0.55 | 0.41 |
| Dividends/Share | $0.00 | $0.14 | $0.00 | $0.00 | - | - |
| Operating Income | 6.0B | 6.1B | 5.3B | 5.0B | 3.8B | 4.3B |
| Operating Margin | 17.9% | 18.3% | 16.7% | 16.9% | 13.9% | 16.8% |
| ROE | 25.3% | 25.7% | 20.0% | 20.5% | 11.5% | 20.0% |
| Shares Outstanding | 892M | 967M | 1,039M | 1,106M | 1,157M | 1,184M |
PayPal Holdings, Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
PayPal Holdings, Inc. trades at 10.4x trailing earnings, compared to its 15-year median P/E of 41.5x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 9.8x vs a median of 20.4x. The company's 5-year average ROIC is 20.3%. Total shareholder yield (dividends + buybacks) is 12.3%. At current prices, the estimated annualized return to fair value is +6.8%.
PayPal Holdings, Inc. (PYPL) has a net profit margin of 15.8%. This is a healthy margin.
PayPal Holdings, Inc. (PYPL) generated $5.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PayPal Holdings, Inc. (PYPL) has a debt-to-equity ratio of 0.53. This indicates moderate leverage.
PayPal Holdings, Inc. (PYPL) reported earnings per share (EPS) of $5.41 in its most recent fiscal year.
PayPal Holdings, Inc. (PYPL) has a return on equity (ROE) of 25.7%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 13 years of financial data for PayPal Holdings, Inc. (PYPL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PayPal Holdings, Inc. (PYPL) has a book value per share of $20.94, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is implementing a multi-year transformation program targeting at least $1.5 billion in gross run-rate cost savings over two to three years through organizational realignment, AI and automation deployment, and vendor rationalization, with savings reinvested in growth initiatives and business headwind mitigation. For 2026, the company expects targeted growth investments to represent approximately a three-point headwind to transaction margin dollar growth while driving durable long-term benefits, with approximately two-thirds of spending directed toward branded checkout and buy-now-pay-later initiatives focused on scaling new experiences, improving merchant presentment, and increasing consumer selection. Management is prioritizing narrowing the gap with market performance in branded checkout through enhanced product delivery, biometric adoption, and competitive placement, while simultaneously scaling omnichannel solutions, growing Venmo, improving payment service provider profitability, and establishing new growth vectors in agentic commerce, ads, stablecoins, and digital wallet interoperability. The company is no longer providing specific multi-year growth outlooks given the more demanding macroeconomic environment and slower-than-anticipated merchant adoption, instead providing annual guidance as a starting point while maintaining conviction in the long-term impact of current strategic initiatives.
Based on recent SEC filings and earnings calls, PayPal Holdings, Inc. (PYPL) has provided the following forward guidance: Gross run-rate cost savings: at least $1.5 billion (over the next two to three years); Non-transaction operating expense growth: approximately 3% (2026); Non-GAAP EPS: down low single digits to slightly positive (2026); Branded checkout TPV growth: slightly positive to low single-digit (2026); Share repurchases: approximately $6 billion (2026), plus 1 additional metric.
Share repurchases (2026): “Our guidance assumes approximately $6 billion in share repurchase”
Adjusted free cash flow (2026): “at least $6 billion of adjusted free cash flow”