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General information
PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants. The Company offers online payment solutions. PayPal Holdings serves customers worldwide.
  • Good financial results growth rate 27.5% (average between last period year over year growth for revenue and EBITDA), there is acceleration compared to average historical growth rates (18.8%)
  • Dividend yield for the last twelve months 0.0%
  • Free cash flow yield 0.1% (LTM)
  • Share price is 171.0% higher than minimum and 9.7% lower than maximum for the last 3 years
  • The company is overvalued by EV / LTM EBITDA multiple compared to target level (55.3x vs 42.5x)
  • Fundamental value created in LTM (estimate) 14.4%
Key Financials
Ticker: PYPL
Share price, USD: 192.31
Common stocks: 1 174 192 449

Dividend Yield:  0.0%
FCF Yield LTM: 0.1%
EV / LTM EBITDA: 55.3x
Last revenue growth (y/y):  22.2%
Last growth of EBITDA (y/y):  32.7%
Historical revenue growth:  17.9%
Historical growth of EBITDA:  19.7%
Target EV / EBITDA (hist 75% percentile): 42.5x
Express share price potential: -14.9%
Fundamental value created in LTM: 14.4%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 225 809
Net Debt ($m): -3 330
EV (Enterprise Value): 222 479
EBITDA LTM ($m): 4 024
EV / LTM EBITDA: 55.3x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

Free Cash Flow ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends

Share price

Payment USD per share

Multiple and potential

EV / LTM EBITDA and 75% percentile

Potential dynamics

Value Creation

Fundamental Value Creation is calculated as ratio of value created in the last period to current market cap of the company.

The fundamental value can be created in two ways:
• cash generation in form of dividend payments or debt reduction or share buybacks
growth of the company enterprise value through improving financial results

The growth of enterprise value in the last period is estimated as product of:
• annualized increase of EBITDA in the last reporting period year over year
• relevant EV/EBITDA multiple (average between actual EV/EBITDA for the company and average general level of 10.0x is applied)

Parameter
#
Formula
Value
    
    
            EBITDA (pre LTM Q)
(1)
963
            EBITDA (last Q)
(2)
1 278
            EBITDA LTM
(3)
4 024
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
3.149
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
992
    
    
            EV
(6)
222 479
        Mult
(7)
(6) / (3)
55.3x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
32.6x
    
    
    Equity+
(10)
(5) * (9)
32 377
    FCF LTM
(11)
241
    
    
Value+
(12)
(10) + (11)
32 618
Cap
(13)
225 809
    
    
Fundamental value creation
(14)
(12) / (13)
14.4%

Potential

EBITDA LTM       4 024
 
EBITDA E       4 438
Mult aim       42.5x
 
EV E       188 788
NetDebt corr       -3 410
 
Cap E       192 198
Cap       225 809
Growth potential            -14.9%

Website traffic (visits bln/month) paypal.com

Three months progress: 4.2%