# PayPal Holdings Inc. (PYPL) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Financial Services / Consumer Finance. Price $54.96, market value $47.0 billion.

## Valuation
- **P/E (trailing): 10.4×** (5-yr avg 26.9×, 3-yr avg 15.9×). PayPal Holdings Inc. trades at 10.4× trailing earnings, well below its own five-year average of 26.9×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 9.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.27**. A PEG of 0.27 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.4×**. Each dollar of revenue is priced at 1.4×.
- **Price / book: 2.4×**. The shares trade at 2.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 7.1×**. Enterprise value is 7.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 14.0%** (5-yr avg 6.5%). Free cash flow equals 14.0% of the market value, above its five-year average of 6.5%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 9.6%**. The inverse of the P/E: 9.6% of the price is earned each year.

## Profitability
- **Operating margin: 17.8%**. 17.8% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 15.8%**. 15.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 25.8%**. 25.8% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 21.6%**. Return on all capital, debt included, is 21.6%: comfortably above what that capital costs.
- **Return on assets: 6.1%**. Each dollar of assets produces 6.1% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 4.3%** (3-yr 6.4%/yr, 5-yr 9.1%/yr). Revenue grew 4.3% over the last year, against 9.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 35.6%** (3-yr 37.3%/yr, 5-yr 8.9%/yr). Earnings per share rose 35.6%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 2.9%/yr**. Free cash flow has compounded at 2.9% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.
- **Cash and short-term investments: $8.0 billion**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 1.02%** ($0.56 per share, trailing). PayPal Holdings Inc. yields 1.02%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 2%**. 2% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.

## Analyst view
- **Analyst consensus: hold** (32 analysts). 32 analysts cover PayPal Holdings Inc.; the consensus is hold, with an average price target of $57.07 (+4% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -19.0%** (YTD -5.3%, 3-mo 33.1%). The shares are down 19.0% over twelve months including dividends.
- **From 52-week high: -30.6%** (42.9% above the low). Trading 31% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 44**. An RSI of 44 is neutral.
- **Beta (1 yr): 1.14** (volatility 44%). Beta of 1.14 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PYPL · Page: https://foliofundamentals.com/stocks/pypl

Not investment advice.