PayPal Holdings Inc


Market Cap$63.98B

Compare PayPal Holdings

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
PayPal Holdings IncPayPal Holdings Inc15.10%20%2.20.5
marketMarket Avg49.51.28%13%6.20.1
TechnologyTechnology Avg17.30.64%48%110.9

Earnings Call Q4 2023

February 7, 2024 - AI Summary

PayPal reported 9% revenue growth in Q4 2023, with total payment volume (TPV) reaching $410 billion.
Transaction margin dollars were flat year-over-year in Q4, but the company expects minimal impact from recent innovations on its financial outlook for 2024.
The company is focused on accelerating growth in branded checkout and improving profitability, including within its high-growth PSP services like Braintree.
PayPal aims to unlock the power of data to create more value for customers and tap into new sources of revenue and margin.
The company plans to operate more efficiently by consolidating platforms, simplifying processes, and investing in tools and services to drive productivity and innovation velocity.
PayPal announced a reduction in its global workforce by approximately 9% throughout the year to improve focus, speed, and investment in future initiatives. Other points mentioned include:
PayPal's leadership team has been strengthened with key additions, and the company is committed to delivering on its operating principles, which include customer-centricity, profitable growth, operating leverage, measurable goals, and maintaining a strong balance sheet.
The company is prioritizing the acceleration of growth in its small business and enterprise segments, as well as deepening relationships with consumers through differentiated value propositions and personalized experiences.
PayPal expects first-quarter revenue to increase approximately 6.5% at spot and 7% on a currency-neutral basis, with non-GAAP earnings per share growing at a mid-single-digit percentage.
For full-year 2024, PayPal anticipates non-GAAP EPS to be roughly in line with the prior year, with flat transaction margin dollars and a low single-digit increase in non-transaction operating expenses.
The company generated $2.5 billion in free cash flow in Q4, including a net benefit from the sale of European Buy Now, Pay Later receivables to KKR. PayPal plans to allocate approximately 70-80% of its free cash flow to share buybacks in 2024.

Target Price by Analysts

18.8% upsidePayPal Holdings Target Price DetailsTarget Price

Current Fair Value

8% upside

Undervalued by 8% based on the discounted cash flow analysis.

Share Statistics

Market cap$63.98 Billion
Enterprise Value$59.60 Billion
Dividend Yield$0.0 (0.0%)
Earnings per Share$3.84
Outstanding Shares1,071,741,864
Avg 30 Day Volume24,824,127


Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio15.07
Price to Sales2.16
Price to Book Ratio3.07
Enterprise Value to Revenue2
Enterprise Value to EBIT12.05
Enterprise Value to Net Income14
Total Debt to Enterprise0.16
Debt to Equity0.46

Revenue Sources

No data

ESG Score

No data

About PayPal Holdings Inc

21,800 employees
CEO: Daniel Schulman

PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make [nancial services and commerce more convenient, a ordable, and secure, the PayPal platform is empowering more...