Paypal Stock Analysis, Valuation (NASDAQ:PYPL)

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$63.83 $0.91 (1.45%) PYPL stock closing price Sep 19, 2017 (Closing)
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Paypal
Updated on : Sep 19, 2017
previous close
PYPL 63.8 (0%)
NASDAQ 6461.3 (0%)
Closing Price On: Sep 19, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
14.2%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$921M
Net Income:
$411M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PYPL PS :
6.5
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.9%
Return on Equity:
10.4%
Free Cash Flow Margin:
23.8%
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Paypal Analysis Video

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View Paypal stock analysis video. This is our PYPL analyst opinion covering the buy and sell arguments for PYPL stock.

Paypal Holdings Inc Stock Rating (2.8/5)

Our Paypal stock opinion is based on fundamentals of the company. This Paypal stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy PYPL stock?

  • The Year Over Year (YoY) revenue growth for Paypal was 18.3% in 2017 Q2.
  • Paypal's average operating margin of 14.2% was exceptional.
  • LTM Net margins were good at 12.8% for Paypal.
  • The operating cash flow looks good at 2.2 times the net income.
  • Paypal has an attractive ROIC (Return on Invested Capital) of 14.9%
  • The LTM ROE of 10.4% for Paypal is attractive.
  • Paypal has a healthy FCF (Free Cash Flow) margin of 23.8%.

Should you sell PYPL stock?

  • Trading at a PE ratio of 47.3, PYPL stock is overvalued in comparison to industry average multiple of 26.4.
  • PYPL stock is trading at a PS multiple of 6.5, which is a negative when compared to the Internet Software industry average multiple of 2.7.

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