Pypl Pe Ratio Analysis and Insights for Investors

The P/E ratio of PayPal is a crucial metric for investors to understand. It's calculated by dividing the stock price by the earnings per share, and for PayPal, it's been hovering around 70-80.

PayPal's P/E ratio is significantly higher than the industry average, indicating that investors are willing to pay a premium for its growth prospects. This is likely due to its strong brand recognition and dominant market position.

Investors should note that a high P/E ratio doesn't necessarily mean the stock is overvalued, as it can also reflect the company's growth potential. In PayPal's case, its P/E ratio has been increasing over the years, suggesting that investors are betting on its future success.

The P/E ratio can be a useful tool for investors to compare PayPal's valuation with its peers, such as Square and Stripe.

The mean historical PE ratio of PayPal Holdings over the last ten years is 43.12. This gives us a baseline to compare the current PE ratio to.

PYPL's PE ratio has been on a downward trend, and the current 21.17 PE ratio is 51% below the historical average.

The Jun 2020 quarter recorded the highest PE ratio of 79.56, which is significantly higher than the current ratio. This was due to a price of $174.23 and an EPS of $2.19.

The lowest point for the PE ratio was in the Jun 2024 quarter, where it dipped to 14.05. This was with a price of $58.03 and an EPS of $4.13.

The PE ratio for PayPal Holdings (PYPL) is currently 21.17 as of January 16, 2025.

This is a relatively low ratio compared to its historical average. The mean historical PE Ratio of PayPal Holdings over the last ten years is 40.91.

PYPL's PE Ratio was at its highest in the March 2020 quarter at 334.24, which is a staggering difference from its current ratio.

Analyst targets for PayPal Holdings, Inc. are generally optimistic, with a high average 1Y price target of $95.09, which is 21.8% higher than the current share price of $78.05.

Analysts have consistently predicted higher prices for the stock, with a dispersion of 12.7% in their estimates.

The table below shows the analyst 12-month forecast and predictions for the stock price in 12 months' time.

Analyst targets have been increasing over time, with a current average 1Y price target of $95.09, up from $71.91 in March '25.

The analysts' predictions are generally within a statistically confident range of agreement, indicating a high level of consensus among analysts.

The past performance of PYPL's PE Ratio is quite telling. The mean historical PE Ratio over the last ten years is 40.91.

This average has been significantly affected by recent changes, with the current PE Ratio being 18.78, a decrease of 4.49% from the historical average.

PYPL's PE Ratio has reached its highest point in the March 2020 quarter, hitting a staggering 334.24.

On the other hand, the PE Ratio was at its lowest in the June 2022 quarter, dipping to a negative 59.29.

The price to earnings ratio (PE ratio) is a key metric used to evaluate a company's valuation. PYPL's PE ratio is 18.9x, calculated by dividing its market cap by its current earnings.

PYPL's PE ratio has been declining over the years, with a significant drop of -52.96% in 2023 compared to 2022. In 2022, the PE ratio was 33.91, and in 2021, it was 53.12.

The 5-year average PE ratio for PYPL is 42.48, indicating a significant drop in valuation over the past five years. As of Jan 16, 2025, PYPL's PE ratio stands at 21.17, which is below the 3 and 5-year averages.

Here's a brief overview of PYPL's key valuation metrics and ratios:

PYPL's PEG ratio is 3x, which indicates a relatively high valuation compared to its earnings growth.

The price to earnings ratio, or PE ratio, is a crucial valuation metric that helps investors understand a company's stock value. It's calculated by dividing the stock price by the earnings per share.

PayPal Holdings's PE ratio as of January 16, 2025, stands at 21.17. This ratio is a key indicator of the company's stock performance.

The PE ratio is calculated by dividing the most recent stock price by the trailing twelve months earnings per share. For PayPal Holdings, this is $88.92 divided by $4.2, resulting in a PE ratio of 21.17.

All PE ratio stats are based on quarterly TTM periods, unless otherwise specified. This means that the calculation is done on a quarterly basis, using the earnings per share for the most recent quarter.

The 3-year average PE ratio is a useful metric for evaluating a company's stock performance. For PayPal Holdings (PYPL), the average PE ratio over the last 3 years is 26.2.

This metric can help investors gauge the stock's value and potential for growth.

In the case of PYPL, this average PE ratio suggests a relatively stable stock performance over the past 3 years.

The 3-year average PE ratio can be a useful tool for investors looking to make informed decisions about their portfolio.

The Price-to-Earnings (P/E) ratio is a key metric for evaluating a company's stock performance. It's calculated by dividing the current stock price by the company's earnings per share.

PYPL's current P/E ratio is 21.17, which is below its 3 and 5-year averages. This suggests that the stock may be undervalued.

The P/E ratio can be a useful tool for identifying potential buying opportunities. For example, in 2020, PYPL's P/E ratio was 65.42, but it dropped to 15.95 in 2023. This significant decrease may indicate that the stock is currently undervalued.

The P/E ratio can be affected by various factors, including earnings growth, profit margins, and market conditions. For instance, PYPL's P/E ratio was at its highest in June 2020 at 79.56, but it dropped to 14.05 in June 2024.

Here's a comparison of PYPL's current P/E ratio with its historical average:

PYPL's current P/E ratio is 51% below its 10-year historical average of 43.12. This significant difference may indicate that the stock is undervalued.

In terms of valuation metrics, the P/E ratio is often used in conjunction with other metrics, such as the Price-to-Sales (P/S) ratio and the Price-to-Book (P/B) ratio.

PYPL's PE Ratio compared to its peers is a key factor in determining its value. PYPL's PE Ratio is less than SoFi Technologies, Inc. (32.00), Visa Inc. (30.17), Mastercard Incorporated (39.71), and greater than Capital One Financial Corporation (17.59).

The table below shows the PE Ratio for PYPL vs its peers, along with market cap and forecasted growth.

PYPL is good value based on its Price-To-Earnings Ratio (17.9x) compared to the peer average (40.7x).

PayPal Holdings, Inc. is covered by 85 analysts, with 43 of them submitting estimates of revenue or earnings used in our report.

Analysts' submissions are updated throughout the day, providing a dynamic and up-to-the-minute view of the market's expectations.

The analysts covering PayPal Holdings, Inc. include notable names such as Oliver Lester from Arete Research Services LLP, Stephen Biggar from Argus Research Company, and Colin Sebastian from Baird.

These analysts play a crucial role in shaping the market's perception of PayPal's performance and future prospects.

Here's a brief overview of the analysts covering PayPal Holdings, Inc.:

Note: This list is not exhaustive, but rather a selection of a few notable analysts covering PayPal Holdings, Inc.

PYPL's Price-To-Earnings Ratio compared to its industry is a mixed bag. In the US Diversified Financial industry, PYPL is actually more expensive than the average, with a PE Ratio of 18.9x compared to the industry average of 18.4x.

In the South American Diversified Financial industry, however, PYPL is expensive with a PE Ratio of 17.9x compared to the industry average of 8.4x.

Here's a comparison of PYPL's PE Ratio to its industry:

PYPL's PE Ratio is also lower than the industry average in other cases, such as when compared to its peers in the payment industry. For example, PYPL's PE Ratio of 17.9x is lower than Adyen's PE Ratio of 60.8x.

The PE ratio of PayPal Holdings has fluctuated significantly over the years.

In 2023, the PE ratio dropped to 15.95, marking a -52.96% change from the previous year.

This decline was a significant drop from the 2022 PE ratio of 33.91, which itself saw a -36.16% change.

The PE ratio has been trending downward since 2021, when it stood at 53.12 and saw an -18.8% change.

In fact, the PE ratio has only seen a few instances of growth, such as in 2020 when it rose by 26.39% to 65.42.

Here's a breakdown of the PE ratio changes over the years:

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