Paypal Stock Analysis, Valuation (NASDAQ:PYPL)
Paypal Analysis Video
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.