PayPal Holdings, Inc.
PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide. The company operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through onl…
What to know about PYPL
PayPal Holdings, Inc. is a large Financial Services company with a mixed financial profile. It scores well on valuation and cash flow, but sentiment is worth keeping an eye on.
Should you consider PYPL?
Based on 31 financial metrics and sector comparison. Not financial advice.
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PayPal Holdings, Inc. is a large-cap Financial Services company with a mixed overall financial profile — it is in the lower half of its Financial Services peers (47 of 70).
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Profitability is roughly average for the S&P 500 — not a standout in either direction.
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Valuation looks attractive — the stock is priced reasonably relative to its earnings and sales compared to most peers. You're not overpaying for the business.
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Growth has been slower than most peers. That's not necessarily a dealbreaker, but it means the investment case rests more on current earnings than future expansion.
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There is a small dividend (0.01%), but income-focused investors will likely find better yields elsewhere in the market.
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Volatility is close to the S&P 500 average — typical market swings, nothing unusual.
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Analyst sentiment is cautious and short interest is relatively elevated — meaning some professional investors are actively betting the price will fall. Worth understanding why.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Financial Services sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how PYPL compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 7.98 | Top 25% |
| Forward P/E | 7.38 | Top 25% |
| PEG Ratio | 0.79 | Top 25% |
| Price to Sales | 1.11 | Top 25% |
| Price to Book | 1.89 | Above avg |
| EV/EBITDA | 6.21 | Top 25% |
| Earnings Yield | 12.54% | Top 25% |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 40.93% | Average |
| Operating Margin | 17.97% | Average |
| Net Profit Margin | 15.00% | Above avg |
| Return on Equity | 25.12% | Above avg |
| Return on Invested Capital | 4.74% | Average |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 7.20% | Average |
| Revenue Growth (3Y CAGR) | 6.43% | Above avg |
| EPS Growth (YoY) | -6.20% | Below avg |
| Free Cash Flow Growth | -17.78% | Below avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.26 | Above avg |
| Debt to Equity | 0.58 | Above avg |
| Interest Coverage | 15.27 | Top 25% |
| Altman Z-Score | 1.83 | Below avg |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 1.28% | Average |
| Payout Ratio | 5.25% | Top 25% |
| Dividend Growth (5Y) | — | N/A |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 14.68% | Top 25% |
| OCF to Sales | 18.94% | Average |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 1.34 | Below avg |
| Volatility (30-Day) | 26.08% | Above avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 6.26% | Below avg |
| Avg. Analyst Rating | 2.88 | Below avg |
| Target Upside % | 21.25% | Above avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 37.5B | Average |
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