PayPal Holdings, Inc. Common Stock (PYPL) Valuation
Historical valuation analysis based on 1281 data points (2021-09-10 to 2026-10-16)
PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 439 million active accounts at the e...
PayPal Holdings, Inc. Common Stock (PYPL) currently trades at a P/E ratio of 9.89 (historical range: 7.40–69.37, median: 17.65), placing it at the 12th percentile — cheap relative to its history, P/S ratio of 1.42 (range: 1.09–14.16, 12th percentile — cheap relative to its history), EV/EBITDA of 8.66 (range: 6.23–81.36, 12th percentile).
Over the historical period (2021-09-10 to 2026-10-16), PayPal Holdings, Inc. Common Stock's P/E ratio has contracted by 58% over the observed period (from an average of 33.3 to 13.9).
PayPal Holdings, Inc. Common Stock trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 9.89 | 17.65 | 12th | cheap relative to its history |
| P/S Ratio | 1.42 | 2.40 | 12th | cheap relative to its history |
| EV/EBITDA | 8.66 | 14.34 | 12th | cheap relative to its history |
| FCF Yield | 13.58% | 7.05% | 94th | cheap relative to its history |
PayPal Holdings, Inc. Common Stock (PYPL) Valuation & P/E History
PayPal Holdings, Inc. Common Stock (PYPL) is a US-listed stock operating in the Financial Services sector, specifically the Credit Services industry currently trading at $56.36 with a market capitalization of $48.2 billion. This page provides historical valuation analysis for PYPL based on 1281 data points covering 2021-09-10 to 2026-10-16. The P/E ratio of 9.89 is below the historical median of 17.65, placing PYPL at the 12th percentile of its valuation range. The P/S ratio of 1.42 compares to a median of 2.40.
PYPL Valuation Metrics & Historical Range
The valuation table above shows PayPal Holdings, Inc. Common Stock's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether PYPL is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests PYPL is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for PayPal Holdings, Inc. Common Stock.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is PYPL Overvalued or Undervalued?
PayPal Holdings, Inc. Common Stock trades well below its historical valuation range across most metrics. The overall valuation percentile of 12 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive PYPL is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full PYPL analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.PYPL trades on NYSE. This page is for informational purposes only and is not financial advice.