PayPal (PYPL)
Financials · $45.8B market cap · SEC CIK 0001633917
fundamentals score out of 100
Next reports on Oct 27, 2026, after the close, with analysts expecting $1.34 in earnings per share.
The case for PYPL
- Cheap on earnings at 9.3×, well under the market's usual 20×.
- A PEG of 0.69: a P/E of 9.3× is low for EPS growing 13%.
- Return on equity of 24%.
- Price/sales of 1.3× is lower than 85% of Financials companies.
The case against
- Down 22.9% over the past year.
- Stability is weak (30/100): beta 1.37, a 51% swing over the year.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 83 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 46 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 50 |
| Momentumhow the price has behaved lately | 48 |
| Stabilityhow violently it moves, what it owes and what it pays you | 30 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 74 Financials companies.
Key numbers
| Price / earnings | 9.3× |
|---|---|
| Price / book | 1.92× |
| Price / sales | 1.3× |
| Revenue growth (YoY) | +5.7% |
| EPS growth (YoY) | +13.5% |
| Gross margin | 40% |
| Operating margin | 17% |
| Net margin | 14% |
| Return on equity | 24% |
| Debt / equity | 0.68× |
| Current ratio | 1.29 |
| Dividend yield | none |
| Beta | 1.37 |
| 52-week range | $38.46 – $79.22 |
| Position in that range | 35% of the way up |
| 3-month return | +23.8% |
| 1-year return | -22.9% |
Five years of financials, as filed
Pulled from PayPal's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $33.2B | $31.8B | $29.8B | $27.5B | $25.4B |
| Operating income | $6.1B | $5.3B | $5.0B | $3.8B | $4.3B |
| Net income | $5.2B | $4.1B | $4.2B | $2.4B | $4.2B |
| Operating cash flow | $6.4B | $7.5B | $4.8B | $5.8B | $5.8B |
| Capital expenditure | $852M | $683M | $623M | $706M | $908M |
| Total assets | $80.2B | $78.7B | $82.2B | $78.6B | $75.8B |
| Total liabilities | $59.9B | $58.3B | $61.1B | $58.4B | $54.1B |
| Shareholder equity | $20.3B | $20.4B | $21.1B | $20.3B | $21.7B |
| Cash | $8.0B | $6.7B | $9.1B | $7.8B | $5.2B |
| Long-term debt | $10.0B | $9.9B | $9.7B | $10.4B | $8.0B |
| Free cash flow | $5.6B | $6.8B | $4.2B | $5.1B | $4.9B |
| Operating margin | 18.3% | 16.7% | 16.9% | 13.9% | 16.8% |
| Net margin | 15.8% | 13.0% | 14.3% | 8.8% | 16.4% |
| Diluted shares | 968M | 1.0B | 1.1B | 1.2B | 1.2B |
Share count is down 18.4% over 4 years. Buybacks have been shrinking the pie.
What PayPal says it does
OVERVIEW At PayPal Holdings, Inc., our mission is to revolutionize commerce globally. Our products are designed to enable digital payments and simplify commerce experiences for consumers and merchants to make selling, shopping, and sending and receiving money simple, personalized, and secure, whether online or in-person. We operate a global, two-sided network at scale that connects consumers and merchants with 439 million active accounts across approximately 200 markets as of December 31, 2025. • Consumers: We provide consumers with digital wallets and other solutions that allow them to shop and pay with PayPal and Venmo — both online and in-person — manage their finances (including saving and buying and selling cryptocurrencies), and send and receive money between friends and family. When shopping, we offer consumers flexibility in how they pay, which may include a bank account, a PayPal or Venmo account balance, PayPal-branded…
Risk factors PYPL lists in its 10-K
- Cyberattacks and security vulnerabilities could result in serious harm to our reputation, business, and financial condition
- (In millions, except percentages and per share amounts)
- Number of payment transactions per active account
- Revenues from other value added services
- Revenues from other value added services
- Our credit products expose us to additional risks
- Cash, cash equivalents, and investments
- Effect of exchange rate changes on cash, cash equivalents, and restricted cash
- Payments Due During the Year Ending December 31,
- Evaluation of Disclosure Controls and Procedures
- Management’s Report on Internal Control over Financial Reporting
- Internal Control - Integrated Framework (2013)
- Internal Control - Integrated Framework
- Changes in Internal Controls over Financial Reporting