PYPL · Intrinsic value
Is PayPal Holdings, Inc. (PYPL) overvalued or undervalued?
As of Oct 19, 2026, TickerWorth's valuation lenses put PayPal Holdings, Inc. (PYPL) at $38.97 – $180.38, too broad a range to say where the delayed market price of $56.50 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
What is PYPL worth?
- Fair-value range
- $38.97 – $180.38
- Market price
- $56.50
- Gap to fair value
- —
- Verdict
- Too wide to call
Reverse DCF: Today's price implies revenue growth of 0.2% a year for 5 years; our model assumes 6.1% a year on average over the same horizon.
What is PYPL's TickerWorth Score?
Cheap against our estimate — but a weaker business
Compared with Financial Services companies in US
Its strongest point: trades below our estimate of what it's worth. Its weakest: growth is slow or negative.
- Value · 74 of 100
Cheaper than 74% of Financial Services companies in US
- Price vs worth · 100 of 100
- Quality · 42 of 100
More profitable than 42% of Financial Services companies in US
- Financial health · 47 of 100
Financially stronger than 47% of Financial Services companies in US
- Growth · 22 of 100
Growing faster than 22% of Financial Services companies in US
- Momentum · 53 of 100
Outperformed 53% of Financial Services companies in US over the past year
Confidence: Medium confidence · Scored
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Why PYPL gets a range, not one number
At a recent price of $56.50, PayPal Holdings, Inc. (PYPL) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $38.97 and $180.38 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts PayPal Holdings, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 10.0%, with a long-run terminal growth rate of 2.5%. About 71% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 0.2% annual revenue growth for PYPL. Our base case instead compounds to about 6.1% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, PYPL's modeled DCF value ranges from about $55.97 to $107.02 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what PayPal Holdings, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of PYPL's intrinsic value. Figures update as new filings and prices come in.
Every input behind PYPL's DCF
| Input | Value |
|---|---|
| Base-year revenuePayPal Holdings, Inc. FY2025 10-K (accession 0001633917-26-000024): us-gaap:Revenues, FY2025 full year. | $33,172,000,000 |
| Base EBIT marginPayPal Holdings, Inc. FY2025 10-K (accession 0001633917-26-000024): us-gaap:OperatingIncomeLoss 6,065,000,000 / revenue 33,172,000,000 = 18.28%, FY2025. | 18.3% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 8% → 7% → 6% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.28 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesPayPal Holdings, Inc. FY2025 10-K (accession 0001633917-26-000024): WeightedAverageNumberOfDilutedSharesOutstanding = 968,000,000 shares, FY2025. | 968M |
| Market priceDelayed quote · as of 2026-10-19 15:11 UTC | $56.50 |
Change PYPL's assumptions
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What does PayPal Holdings, Inc. do?
What does it do?
PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide. It operates in the Credit Services industry (Financial Services sector), headquartered in United States. The company employs roughly 23,800 people.
How does it make money?
The business turns $34.1B in annual revenue into profit. Out of every $100 of sales, about $17 is left as operating profit (operating margin of 17.0%), after a 40% gross margin on the products/services it sells. After all costs, taxes and interest, 14.4% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries modest debt (0.7× equity), can just cover its short-term bills (1.3× current ratio), and is currently profitable.
Who at PYPL filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Natali Chris | SVP, Chief Accounting Officer | Option exercise | — | Form 4 for Natali Chris (opens sec.gov in a new tab) | |
| Natali Chris | SVP, Chief Accounting Officer | Shares withheld (tax) | $72,425.10 | Form 4 for Natali Chris (opens sec.gov in a new tab) | |
| Keller Frank | Pres., Checkout Sol. & PayPal | Option exercise | — | Form 4 for Keller Frank (opens sec.gov in a new tab) | |
| Keller Frank | Pres., Checkout Sol. & PayPal | Shares withheld (tax) | $50,882.70 | Form 4 for Keller Frank (opens sec.gov in a new tab) | |
| Webster Aaron | EVP, Global Chief Risk Officer | Option exercise | — | Form 4 for Webster Aaron (opens sec.gov in a new tab) | |
| Webster Aaron | EVP, Global Chief Risk Officer | Option exercise | — | Form 4 for Webster Aaron (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is PYPL's intrinsic value?
TickerWorth's valuation lenses put PayPal Holdings, Inc. (PYPL) between $38.97 and $180.38 per share, versus a market price of $56.50. They disagree too widely for us to state a single fair value, so we publish the range.
Is PYPL overvalued or undervalued?
At $56.50 the price sits inside a range too wide to call either way. We don't call PYPL overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for PYPL?
A WACC of 10.0% and a terminal growth rate of 2.5%.
Is PayPal stock undervalued?
TickerWorth's fair-value range for PayPal Holdings, Inc. (PYPL) is $38.97 – $180.38 against a market price of $56.50. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
PayPal (PYPL) DCF valuation and fair value
Our fair-value range for PayPal Holdings, Inc. (PYPL) is $38.97 – $180.38, built on a 10.0% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into PayPal stock?
Today's price implies revenue growth of 0.2% a year for 5 years; our model assumes 6.1% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $56.50. A model estimate, not investment advice.
PayPal (PYPL) insider trading
The most recent insider filing (SEC Form 4) for PayPal Holdings, Inc. (PYPL): Natali Chris, SVP, Chief Accounting Officer, option exercise on 2026-10-15. The latest filings are listed on this page. A disclosure, not a signal to trade.
How does PYPL compare with its peers?
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Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.