Added to YB: 2026-04-28
Pitch date: 2026-04-26
PYPL [bullish]
PayPal Holdings, Inc.
-1.21%
current return
Author Info
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Company Info
PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide.
Market Cap
$45.4B
Pitch Price
$50.38
Price Target
100.00 (+98%)
Dividend
1.11%
EV/EBITDA
6.95
P/E
9.33
EV/Sales
1.43
Sector
Financial Services
Category
value
PayPal at 9x Earnings: The Most Misunderstood Setup in Large-Cap Fintech
PYPL: Trades 9x P/E (vs 28x 10yr avg) w/ 13% FCF yield. Retiring ~13% shares/yr via $6B annual buyback, $15B+ authorization remaining. 438M active accounts stable (+2% YoY). Branded checkout decelerated to 1% growth Q4'25 (from 7% Q4'24), got CEO Chriss fired. New CEO Lores (ex-HP, 5yr board member) committed $400M to revamp checkout; his $25-62M stock PSUs vest only if shares hit $68-$127 by 2029-31 (vs ~$50 today). Venmo +20% rev, debit card TPV +50%. Risks: Apple/Shop Pay share loss, take rate compression, agentic AI commerce, CEO execution. Base case: flat FCF + buyback = $100/share (2x) in 3yrs.
Read full article (14 min)