Added to YB: 2026-05-08
Pitch date: 2026-05-06
PYPL [bullish]
PayPal Holdings, Inc.
-0.45%
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
$40.8B
Pitch Price
$46.43
Price Target
91.00 (+97%)
Dividend
1.21%
EV/EBITDA
6.42
P/E
8.67
EV/Sales
1.28
Sector
Financial Services
Category
value
PayPal at 8x Earnings, Post-Print: The Setup Got Better, Not Worse
PYPL: Trades 8.4x P/E (80% below 10yr avg), $6B FCF = 14.5% yield. Buying back 14%/yr at depressed price; CEO Lores' $25-62M PSUs vest only if stock doubles to $85-$130 by 2029-31. Q1 beat all lines; branded checkout stabilized at +2% (up from 1%); Venmo +14%, now standalone segment w/ Stripe interest surfaced. New $1.5B cost program funds $400M checkout reinvestment. Bear case: take rate compressed 2.03% to 1.62% since '21; Apple/Shop Pay gaining share; agentic commerce risk. Bull: even if flat, buyback at <$55 drives FCF/share to $9+ by '28; 10x = $90 (~2x). Venmo at fintech multiples = $15-25B (60% of EV). Net cash balance sheet, investment grade. Risks: 3 CEOs in 3yrs, macro, execution. Asymmetry: survival = double via buyback math alone.
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