2026년 2월 23일 · Unknown · financial · 출처 Yahoo Finance
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If you are wondering whether PayPal Holdings is starting to look like a value opportunity or still carries too much risk, the next sections will walk through what the current share price may be implying. The stock recently closed at US$41.65, with a 3.4% gain over the last 7 days but declines of 26.4% over 30 days, 28.4% year to date, 44.3% over 1 year and 83.9% over 5 years. Recent attention on PayPal has centered on how investors view its position in digital payments and competition from other large platforms. This helps explain why the share price has been sensitive to shifts in sentiment. These themes provide important context for thinking about whether the current price reflects caution, renewed interest, or something in between. Right now PayPal scores 5 out of 6 on our valuation checks, giving it a valuation score of 5. We will look at how different approaches such as multiples and discounted cash flow line up with that figure, before finishing with a framework that can help you interpret these signals more effectively.
Find out why PayPal Holdings's -44.3% return over the last year is lagging behind its peers.
Approach 1: PayPal Holdings Excess Returns Analysis
The Excess Returns model looks at how much profit a company is expected to generate over and above the return that shareholders require, and then capitalizes those surplus profits into an implied per share value.
For PayPal Holdings, the model starts with a Book Value of US$22.02 per share and a Stable EPS of US$6.21 per share, based on weighted future Return on Equity estimates from 8 analysts. The Average Return on Equity used in the model is 22.75%, compared with a Cost of Equity of US$2.13 per share. That gap translates into an Excess Return of US$4.08 per share.
These excess profits are applied to a Stable Book Value of US$27.30 per share, again sourced from weighted future Book Value estimates from 8 analysts, to arrive at an estimated intrinsic value of about US$120 per share using this Excess Returns framework.
Against the recent share price of US$41.65, this implies PayPal is about 65.3% undervalued on this model.
Result: UNDERVALUED
Our Excess Returns analysis suggests PayPal Holdings is undervalued by 65.3%. Track this in your watchlist or portfolio, or discover 54 more high quality undervalued stocks.PYPL Discounted Cash Flow as at Feb 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for PayPal Holdings.
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Approach 2: PayPal Holdings Price vs Earnings
The P/E ratio is a useful way to think about valuation for profitable companies because it links what you pay for the stock directly to the earnings that each share currently generates. It is essentially the price tag the market is putting on one dollar of earnings.
What counts as a "normal" P/E depends on how the market views growth potential and risk. Higher expected growth and lower perceived risk usually support a higher multiple, while slower expected growth or higher uncertainty tend to line up with a lower one.
PayPal Holdings currently trades on a P/E of 7.33x. That sits well below the Diversified Financial industry average of 17.76x and the broader peer group average of 46.60x. Simply Wall St also calculates a Fair Ratio of 16.61x for PayPal, which is the P/E level implied by its specific mix of earnings growth profile, profit margins, industry, market cap and risk factors. Because this Fair Ratio is tailored to the company rather than being a blunt comparison with peers, it can be a more targeted reference point. On that basis, the current 7.33x P/E stands materially under the 16.61x Fair Ratio, which indicates that the shares appear undervalued on this measure.
Result: UNDERVALUEDNasdaqGS:PYPL P/E Ratio as at Feb 2026
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Upgrade Your Decision Making: Choose your PayPal Holdings Narrative
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply your written story about PayPal Holdings that sits behind the numbers you plug in for fair value, future revenue, earnings and margins. The Narrative then links that story to a forecast and, ultimately, to a fair value you can compare with the current share price.
On Simply Wall St, Narratives live inside the Community page and are designed to be easy to use. This means you can pick or write a view on PayPal Holdings, connect it to your assumptions, and immediately see whether your Fair Value is above or below today’s price to help you decide whether the stock looks expensive, cheap or somewhere in between based on your own framework.
Because Narratives on the platform update automatically when new information arrives, such as earnings releases or news about PayPal World, Venmo, BNPL or AI partnerships, your fair value view stays current without you having to rebuild models from scratch every time sentiment or company disclosures shift.
For PayPal Holdings specifically, one investor might build a Narrative that points to a Fair Value near the lower end of community estimates, such as US$51. Another might anchor on higher Fair Values around US$111 or even above US$180. Both views can coexist on Simply Wall St with clearly laid out assumptions so you can see exactly why opinions differ rather than just staring at a single target price.
Do you think there's more to the story for PayPal Holdings? Head over to our Community to see what others are saying!NasdaqGS:PYPL 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and …