Consider This Before Taking a Position in PayPal (PYPL)

PayPal logged a -1.5% change during today's evening session, and is now trading at a price of $62.8 per share. On average, analysts give it a target price of $86.47.

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. The large-cap company is based in the United States.

Make Sure to Consider the Following Before Buying PayPal:

  • PayPal has moved -34.0% over the last year.

  • PYPL has a forward P/E ratio of 11.1 based on its EPS guidance of 5.64.

  • Over the last 6 years, earnings per share (EPS) have been growing at a compounded average rate of 16.0%.

  • The company has a price to earnings growth (PEG) ratio of 0.74.

  • Its Price to Book (P/B) ratio is 3.52

PayPal Has Irregular Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2023-02-10 5,813,000 -701,000 6,514,000 -2.78
2022-02-03 5,797,000 -903,000 6,700,000 -3.8
2021-02-05 6,219,000 -746,000 6,965,000 46.39
2020-02-06 4,071,000 -687,000 4,758,000 -24.48
2019-02-07 5,480,000 -820,000 6,300,000 97.0
2018-02-07 2,531,000 -667,000 3,198,000

PayPal's free cash flows have a decent average of $5.74 Billion over the last 6 years, but they are highly variable since their coefficient of variability is 7836037379.1%. The compounded average growth rate over this period is 0.0%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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