How to buy PayPal shares | $176.18
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PayPal Holdings, Inc is a credit services business with stocks listed in the US. PayPal shares (PYPL) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was US$176.18 – an increase of 1.12% over the previous week.
How to buy shares in PayPal
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for PayPal. Find the share by name or ticker symbol: PYPL. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until PayPal reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$176.18, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of PayPal, depending on your broker.
- Check in on your investment. Congratulations, you own a part of PayPal. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- PayPal key stats
- Compare share trading platforms
- Is PayPal stock a buy or sell?
- PayPal performance over time
- Can I short PayPal shares?
- Is PayPal suitable for ethical investing?
- Are PayPal shares over-valued?
- PayPal's financials
- How volatile are PayPal shares?
- Does PayPal pay a dividend?
- Other common questions
How has coronavirus impacted PayPal's share price?
Since the stock market crash in March caused by coronavirus, PayPal's share price has had significant positive movement.
Its last market close was US$176.18, which is 32.18% up on its pre-crash value of US$119.49 and 114.67% up on the lowest point reached during the March crash when the shares fell as low as US$82.07.
If you had bought US$1,000 worth of PayPal shares at the start of February 2020, those shares would have been worth US$731.53 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$1,511.62.
PayPal share priceUse our graph to track the performance of PYPL stocks over time.
PayPal shares at a glance
|Latest market close||USD$176.18|
|52-week range||USD$82.07 - USD$212.45|
|50-day moving average||USD$195.6512|
|200-day moving average||USD$150.249|
|Dividend yield||N/A (0%)|
|Earnings per share (TTM)||USD$2.179|
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Is it a good time to buy PayPal stock?
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.
PayPal price performance over time
|1 week (2020-09-10)||-7.32%|
|1 month (2020-08-20)||-11.10%|
|3 months (2020-06-19)||7.19%|
|6 months (2020-03-20)||103.25%|
|1 year (2019-09-19)||66.02%|
|2 years (2018-09-19)||97.27%|
|3 years (2017-09-19)||176.01%|
|5 years (2015-09-18)||435.18%|
Is PayPal under- or over-valued?
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 P/E ratio
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 87x. In other words, PayPal shares trade at around 87x 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 PEG ratio
PayPal's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.0058. 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$3.7 billion (£2.8 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$19.2 billion|
|Operating margin TTM||15.16%|
|Gross profit TTM||US$8 billion|
|Return on assets TTM||3.27%|
|Return on equity TTM||15.27%|
|Market capitalisation||US$215.9 billion|
TTM: trailing 12 months
Shorting PayPal shares
There are currently 14.5 million PayPal shares held short by investors – that's known as PayPal's "short interest". This figure is 4.6% down from 15.2 million last month.
There are a few different ways that this level of interest in shorting PayPal shares can be evaluated.
PayPal's "short interest ratio" (SIR)
PayPal's "short interest ratio" (SIR) is the quantity of PayPal shares currently shorted divided by the average quantity of PayPal shares traded daily (recently around 7.3 million). PayPal's SIR currently stands at 1.98. In other words for every 100,000 PayPal shares traded daily on the market, roughly 1980 shares are currently held short.
However PayPal's short interest can also be evaluated against the total number of PayPal shares, or, against the total number of tradable PayPal shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case PayPal's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 PayPal shares in existence, roughly 10 shares are currently held short) or 0.0115% of the tradable shares (for every 100,000 tradable PayPal shares, roughly 12 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against PayPal.
Find out more about how you can short PayPal stock.
PayPal's environmental, social and governance track record
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.
PayPal's total ESG risk score
Total ESG risk: 17.45
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and PayPal's overall score of 17.45 (as at 07/31/2020) is excellent – landing it in it in the 16th 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.).
PayPal's environmental score
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.
PayPal's social score
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.
PayPal's governance score
Governance score: 8.21/100
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.
PayPal's controversy score
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.
Environmental, social, and governance (ESG) summary
|Total ESG score||17.45|
|Total ESG percentile||15.85|
|Environmental score percentile||2|
|Social score percentile||2|
|Governance score percentile||2|
|Level of controversy||2|
PayPal share dividends
We're not expecting PayPal to pay a dividend over the next 12 months.
PayPal share price volatility
Over the last 12 months, PayPal's shares have ranged in value from as little as US$82.07 up to US$212.45. 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 1.1444. 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, 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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