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Paypal Holdings, Inc. (NASDAQ: PYPL) is an American company that operates an online payment system in many countries all over the world. It launched in 1998 under the name of Confinity but changed its business model in 1999 when it became PayPal. It has had several owners, including the infamous Elon Musk, and was bought out by eBay in 2002. It currently operates as an independent company.
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| 52-week range | US$175.4 - US$310.16 |
|---|---|
| 50-day moving average | US$193.67 |
| 200-day moving average | US$251.3658 |
| Target price | US$265.76 |
| PE ratio | 42.8997 |
| Dividend yield | N/A (0%) |
| Earnings per share (TTM) | US$4.159 |
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Use the fields above to explore the returns from a historical investment. Please refer to the charts further up this page to see performance over 5 years, or other periods. Past performance doesn't indicate future results. Capital is at risk.
Historical closes compared with the last close of $173.28
| 1 week (2022-01-14) | -2.88% |
|---|---|
| 1 month (2021-12-21) | -8.39% |
| 3 months (2021-10-21) | -28.75% |
| 6 months (2021-07-21) | -42.58% |
| 1 year (2021-01-21) | -30.31% |
|---|---|
| 2 years (2020-01-21) | 49.19% |
| 3 years (2019-01-18) | 90.17% |
| 5 years (2017-01-20) | 315.64% |
Valuing PayPal stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of PayPal's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
PayPal's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 43x. In other words, PayPal shares trade at around 43x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
PayPal's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.1116. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into PayPal's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
PayPal's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$5.2 billion (£3.8 billion).
The EBITDA is a measure of a PayPal's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | US$24.6 billion |
|---|---|
| Operating margin TTM | 17.39% |
| Gross profit TTM | US$10 billion |
| Return on assets TTM | 3.81% |
| Return on equity TTM | 24.3% |
| Profit margin | 20.09% |
| Book value | 18.816 |
| Market capitalisation | US$209.6 billion |
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like PayPal.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 16.47
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and PayPal's overall score of 16.47 (as at 12/31/2018) is excellent – landing it in it in the 15th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like PayPal is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 2.41/100
PayPal's environmental score of 2.41 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that PayPal is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 10.65/100
PayPal's social score of 10.65 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that PayPal is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 7.23/100
PayPal's governance score puts it squarely in the 2nd percentile of companies rated in the same sector. That could suggest that PayPal is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. PayPal scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that PayPal has, for the most part, managed to keep its nose clean.
PayPal Holdings Inc was last rated for ESG on: 2019-01-01.
| Total ESG score | 16.47 |
|---|---|
| Total ESG percentile | 14.76 |
| Environmental score | 2.41 |
| Environmental score percentile | 2 |
| Social score | 10.65 |
| Social score percentile | 2 |
| Governance score | 7.23 |
| Governance score percentile | 2 |
| Level of controversy | 2 |
We're not expecting PayPal to pay a dividend over the next 12 months.
Over the last 12 months, PayPal's shares have ranged in value from as little as US$175.4 up to US$310.16. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while PayPal's is 1.1546. This would suggest that PayPal's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, Hyperwallet, and iZettle products. The company's payments platform allows consumers to send and receive payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. It also offers gateway services that enable merchants to accept payments online with credit or debit cards, as well as digital wallets. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.
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