What Are the Fundamentals of PayPal (PYPL)?

Shares of Large-cap consumer discretionary company PayPal moved 0.2 this afternoon, and are now trading at $51.61 per share. On the other hand, the average analyst target price for the stock is $76.73.

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide.

PayPal Investors Should Consider This:

  • PayPal has moved -41.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 0.68. A number between 0 and 1 could mean that the market is undervaluing PayPal's estimated growth potential

  • Its Price to Book (P/B) ratio is 2.89

Understanding PayPal's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023 28,556,000 24,062,000 16 14.29
2022 27,518,000 23,681,000 14 -17.65
2021 25,371,000 21,109,000 17 13.33
2020 21,454,000 18,165,000 15 0.0
2019 17,772,000 15,053,000 15 0.0
2018 15,451,000 13,257,000 15

Over the last 6 years, PayPal's operating margins have averaged 15.3%, which is better than the 9.03% Business Services industry average. We also note that the company's operating margins have a high coefficient of variability at 84.6%. The firm's margins exhibit a relatively stable growth trend of 0.8%.

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.