PayPal Holdings, Inc. (PYPL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+128.2%

$133.84

vs $58.65 price

Levered DCF

$80.98

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.93

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	10.69×	21.18×	15.95×	33.91×	53.12×	65.42×	51.76×	48.33×
P/B	2.76×	4.3×	3.22×	4.05×	10.19×	13.72×	7.52×	6.47×
P/S	1.69×	2.76×	2.28×	2.99×	8.73×	12.8×	7.15×	6.44×
EV / EBITDA	7.53×	13.52×	10×	17.01×	40.25×	43.15×	30.96×	29.11×
Gross margin	46.6%	46.1%	46.0%	50.1%	55.2%	54.9%	54.0%	55.6%
Operating margin	18.3%	16.7%	16.9%	13.9%	16.8%	15.3%	15.3%	14.2%
Net margin	15.8%	13.0%	14.3%	8.8%	16.4%	19.6%	13.8%	13.3%
Current ratio	1.29×	1.26×	1.29×	1.28×	1.22×	1.33×	1.43×	1.27×
Debt / equity	0.49×	0.48×	0.46×	0.51×	0.42×	0.45×	0.29×	0.13×
Interest coverage	13.75×	13.94×	14.49×	12.62×	18.37×	15.74×	23.64×	28.49×
Dividend yield	0.2%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	2.5%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	25.8%	20.3%	20.2%	11.9%	19.2%	21.0%	14.6%	13.4%
Return on invested capital	15.0%	12.5%	11.7%	8.2%	12.6%	8.5%	9.1%	9.8%
Return on assets	6.5%	5.1%	5.2%	3.1%	5.5%	6.0%	4.8%	4.7%
Free cash flow yield	9.9%	7.7%	6.2%	6.2%	2.2%	1.8%	2.7%	4.7%
Earnings yield	9.3%	4.7%	6.3%	2.9%	1.9%	1.5%	1.9%	2.1%
Enterprise value	$57.9B	$91.1B	$68.3B	$84.8B	$225.2B	$278.9B	$124.6B	$94B
Net debt / EBITDA	0.25×	0.49×	0.09×	0.53×	0.69×	0.64×	-0.59×	-1.73×
Cash conversion cycle (days)	518	-326	-392	-474	-651	-720	-553	-622