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PayPal Holdings, Inc.

PYPL Financial Credit Services

PayPal Holdings, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $33.2 billion, up 4.32% from fiscal 2024.

Revenue
+1.98%
EPS
−3.53%
Free cash flow
−16.6%
Total debt
+19.5%

Quarter to September 2026, against a year earlier

59.44 0.48 +0.81%
Market cap
$49.0B
P/E
11.2×
Fwd P/E
11.2×
Dividend yield
0.95%
F-score
8/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

PayPal Holdings, Inc. (PYPL) valuation and DCF model

What the price implies · reverse DCF

At $59.44 the price implies 28.3% a year of dividend growth, at a 9.0% cost of equity.

Return on equity averaged 17.0% over ten years; the price implies 19.3% for good.

The headline discounts the last twelve months’ the dividend a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
28.3% a year for ten years
$59.44
today’s price
Its base case
5.0% a year for five years, then 3.0%
$9.84
83.5% below today’s price

Both are growth in the dividend a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record PayPal Holdings, Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Dividends
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in the dividend. It usually slows as the company matures.

Today’s price implies the dividend a share growing 28.3% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against PayPal Holdings, Inc.’s own cost of capital: risk-free 4.3% + beta 1.32 × equity premium 4.5% = 10.2% cost of equity; weighted, 10.2%.

Use 10.2%
Base case value per share $9.84 ten years discounted, and what follows
Current price $59.44 market price per share
Below today’s price 83.5% downside at the base case’s assumptions

How we got there$4.40 10 years of dividends+$5.43 terminal value=$9.84 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Credit Services).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 11.16× 18.86× 36.20× 69% below 8.96× 25% above
P/FCF 7.92× 12.74× 26.57× 70% below 2.55× 211% above
P/B 2.57× 3.42× 6.05× 58% below 1.23× 109% above
EV/EBITDA — 18.04× 26.18× — 3.38× —
EV/Sales — 3.69× 5.41× — 3.90× —
P/E P/FCF P/B EV/EBITDA EV/Sales
12.97×24.32×35.67×47.03×10Y avg 26.57×2017201820192020202120222023202420252026

PYPL trades at 7.92× P/FCF, against a 10-year average of 26.57× (range 7.92×–50.19×). That is cheaper than 100% of the last 9 year-end readings; re-rating to the average implies $199.32 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.