PayPal Fair Value
PY
The fair market value of PYPL stock is 188.94 USD. Relative to the market price of 77.57 USD PayPal Holdings is undervalued by 143.6%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
PayPal Valuation
Current PYPL share ticker price is 77.57 USD.
The fair value level of 188.94 USD can be considered as an effective entry point for long-term investors to start investing in PYPL stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 144% lower its fair value
Current price is 10% higher its minimum value
Current price is 262% lower its maximum value
Market price:
PYPL stock is undervalued
It means the current price may concern as a Moderate Risk Entry Point
PayPal Holdings Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
67.81
2
Median P/E over 5 years
45.68
3
Minimum P/E over 5 years
16.8
4
Earning per share (last 12 months)
4.14 USD
Maximum value
1
x
4
=
280.5 USD
Fair value
2
x
4
=
188.94 USD
Minimum value
3
x
4
=
69.48 USD
PayPal Holdings Inc price metrics
-8.0
Annual return (geometric mean)
45.0
Risk (standard deviation) of returns
β
1.4
Beta (volatility compared to market)