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?
- Paypal's revenue growth came in at 18.3% in 2017 Q2.
- The TTM operating margin was good at 14.2% for Paypal.
- Net margins came in at average 12.8% for Paypal over the last twelve months.
- The company has an operating cash flow which is 2.2 times the net income. We see this as a positive signal.
- Paypal's return on invested capital of 14.9% is good.
- The LTM ROE of 10.4% for Paypal is attractive.
- The company has a healthy free cash flow margin of 23.8%.
Should you sell PYPL stock?
- Trading at a PE ratio of 48, PYPL stock is overvalued in comparison to industry average multiple of 26.2.
- The company is trading at a price to sales multiple of 6.6, which is higher in comparison to the Internet Software industry average of 2.7, making PYPL stock expensive.