Latest Ratios: P/E Ratio 9.7x · EV/EBITDA 6.9x · ROE 25.7%. (2013–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $46.3B | $56.5B | $88.7B | $68.0B | $82.5B | $223.7B | $278.0B | $128.5B | $101.2B | $89.9B | $48.1B |
| Enterprise Value | $48.3B | $58.4B | $92.0B | $68.6B | $85.1B | $227.5B | $282.1B | $126.1B | $95.6B | $88.0B | $46.5B |
| P/E Ratio → | 9.71 | 10.79 | 21.39 | 15.99 | 34.08 | 53.57 | 66.16 | 52.26 | 49.18 | 50.08 | 34.32 |
| P/S Ratio | 1.42 | 1.73 | 2.82 | 2.31 | 3.03 | 8.90 | 13.09 | 7.28 | 6.58 | 6.87 | 4.43 |
| P/B Ratio | 2.51 | 2.79 | 4.34 | 3.23 | 4.07 | 10.29 | 13.86 | 7.59 | 6.57 | 5.62 | 3.27 |
| P/FCF | 8.32 | 10.16 | 13.10 | 16.11 | 16.15 | 45.75 | 55.73 | 38.17 | 21.72 | 48.22 | 19.31 |
| P/OCF | 7.22 | 8.81 | 11.90 | 14.04 | 14.19 | 38.58 | 47.49 | 31.57 | 18.46 | 35.52 | 15.22 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.79 | 2.93 | 2.33 | 3.13 | 9.05 | 13.28 | 7.14 | 6.22 | 6.72 | 4.29 |
| EV / EBITDA | 6.87 | 8.32 | 14.47 | 11.24 | 16.51 | 41.16 | 63.01 | 34.73 | 32.18 | 30.02 | 20.12 |
| EV / EBIT | 7.96 | 8.68 | 16.11 | 11.91 | 23.19 | 52.53 | 53.50 | 40.51 | 38.97 | 39.88 | 28.45 |
| EV / FCF | — | 10.51 | 13.59 | 16.25 | 16.67 | 46.53 | 56.56 | 37.46 | 20.52 | 47.21 | 18.68 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 46.6% | 46.6% | 46.1% | 46.0% | 50.1% | 55.2% | 54.9% | 54.0% | 55.6% | 58.5% | 59.1% |
| Operating Margin | 18.3% | 18.3% | 16.7% | 16.9% | 13.9% | 16.8% | 15.3% | 15.3% | 14.2% | 16.2% | 14.6% |
| Net Profit Margin | 15.8% | 15.8% | 13.0% | 14.3% | 8.8% | 16.4% | 19.6% | 13.8% | 13.3% | 13.7% | 12.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 25.7% | 25.7% | 20.0% | 20.5% | 11.5% | 20.0% | 22.7% | 15.2% | 13.1% | 11.7% | 9.8% |
| ROA | 6.5% | 6.5% | 5.1% | 5.3% | 3.1% | 5.7% | 6.9% | 5.2% | 4.9% | 4.9% | 4.5% |
| ROIC | 15.0% | 15.0% | 13.1% | 12.3% | 9.4% | 10.7% | 9.7% | 10.4% | 9.6% | 10.1% | 8.4% |
| ROCE | 18.1% | 18.1% | 15.9% | 14.9% | 11.6% | 13.2% | 11.7% | 13.0% | 12.4% | 12.5% | 10.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.49 | 0.49 | 0.48 | 0.46 | 0.51 | 0.42 | 0.45 | 0.29 | 0.13 | 0.06 | — |
| Debt / EBITDA | 1.42 | 1.42 | 1.55 | 1.59 | 2.02 | 1.64 | 2.00 | 1.37 | 0.67 | 0.34 | — |
| Net Debt / Equity | — | 0.10 | 0.16 | 0.03 | 0.13 | 0.18 | 0.21 | -0.14 | -0.36 | -0.12 | -0.11 |
| Net Debt / EBITDA | 0.28 | 0.28 | 0.52 | 0.10 | 0.51 | 0.70 | 0.93 | -0.66 | -1.88 | -0.64 | -0.69 |
| Debt / FCF | — | 0.35 | 0.49 | 0.14 | 0.52 | 0.79 | 0.83 | -0.71 | -1.20 | -1.01 | -0.64 |
| Interest Coverage | 15.27 | 15.27 | 14.95 | 16.59 | 12.07 | 18.67 | 25.23 | 27.07 | 31.86 | 315.29 | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.29 | 1.29 | 1.26 | 1.29 | 1.28 | 1.22 | 1.33 | 1.43 | 1.27 | 1.43 | 1.52 |
| Quick Ratio | 1.29 | 1.29 | 1.26 | 1.29 | 1.28 | 1.22 | 1.33 | 1.43 | 1.27 | 1.43 | 1.52 |
| Cash Ratio | 0.17 | 0.17 | 0.14 | 0.19 | 0.17 | 0.12 | 0.12 | 0.27 | 0.29 | 0.13 | 0.09 |
| Asset Turnover | — | 0.41 | 0.39 | 0.36 | 0.35 | 0.33 | 0.30 | 0.35 | 0.36 | 0.32 | 0.33 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.3% | 0.2% | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 2.5% | 2.5% | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.3% | 9.3% | 4.7% | 6.3% | 2.9% | 1.9% | 1.5% | 1.9% | 2.0% | 2.0% | 2.9% |
| FCF Yield | 12.0% | 9.8% | 7.6% | 6.2% | 6.2% | 2.2% | 1.8% | 2.6% | 4.6% | 2.1% | 5.2% |
| Buyback Yield | 13.1% | 10.7% | 6.8% | 7.4% | 5.1% | 1.5% | 0.6% | 1.1% | 3.5% | 1.1% | 2.1% |
| Total Shareholder Yield | 13.3% | 10.9% | 6.8% | 7.4% | 5.1% | 1.5% | 0.6% | 1.1% | 3.5% | 1.1% | 2.1% |
| Shares Outstanding | — | $968M | $1.0B | $1.1B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B |
Includes 30+ ratios · 13 years · Updated daily
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Quick answers to the most common questions about buying PYPL stock.
PayPal Holdings, Inc.'s current P/E ratio is 9.7x. The historical average is 38.5x.
PayPal Holdings, Inc.'s current EV/EBITDA is 6.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.6x.
PayPal Holdings, Inc.'s return on equity (ROE) is 25.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 15.4%.
Based on historical data, PayPal Holdings, Inc. is trading at a P/E of 9.7x. Compare with industry peers and growth rates for a complete picture.
PayPal Holdings, Inc.'s current dividend yield is 0.26% with a payout ratio of 2.5%.
PayPal Holdings, Inc. has 46.6% gross margin and 18.3% operating margin. Operating margin between 10-20% is typical for established companies.
PayPal Holdings, Inc.'s Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Branded checkout erosion
Metrics are mathematically derived from official filings.
Deep Value or Value Trap?
Trading at 10.6x forward earnings and 2.7x book, PayPal's multiples sit far below payment peers, implying the market prices it as a mature processor rather than a growth fintech. According to recent market data, the discount may reflect concerns over branded checkout erosion.
The P/B of 2.73 is a fraction of Visa's 18.99 and Mastercard's 66.44, but PayPal's ROE of 5.5% is also far lower, suggesting the market is not granting a premium for its network. The forward P/E of 10.68 implies the market expects minimal earnings growth, consistent with the low-single-digit EPS decline guided for the year. Investors should monitor whether the stabilization in branded checkout and Venmo monetization can justify a re-rating, or if the discount is warranted by structural margin pressure.
Fee-Driven ROE, Leverage-Light
ROE has hovered between 4.3% and 7.1% over the past ten quarters, with Q2 2026 at 5.5%, driven almost entirely by fee income (98.8% of revenue). As reported in financial statements, the DuPont decomposition reveals a high-margin, low-leverage model where asset utilization is key.
With an equity-to-assets ratio of 24%, PayPal's leverage is minimal compared to traditional banks, which amplifies the impact of net margins on ROE. The efficiency ratio improvement to 23.2% in Q2 2026 suggests cost discipline is offsetting gross margin pressure from the mix shift toward Braintree. However, the near-zero NIM indicates that interest income is no longer a meaningful contributor, making the business entirely dependent on transaction volumes and take rates.
Efficiency Gains Mask NIM Irrelevance
Net interest margin has dwindled to effectively zero, while the efficiency ratio improved from 29.8% in Q1 2024 to 23.2% in Q2 2026, the best in ten quarters. Based on recent earnings reports, this reflects a strategic pivot away from interest-earning assets toward fee-based services.
The collapse in NIM to -0.0% in Q2 2026 underscores that PayPal is no longer a spread business; its profitability hinges on transaction fees and cost control. The efficiency ratio improvement is notable, but investors should question whether further cost cuts are sustainable without impairing product innovation. The operating leverage achieved in Q2 2026, with operating income rising to $1.9 billion on flat revenue, suggests management is prioritizing margin protection over top-line growth.
Fortress Balance Sheet, Buyback Capacity
With equity of $19.8 billion and an equity-to-assets ratio of 24%, PayPal maintains a capital base far exceeding traditional bank requirements, providing ample room for buybacks. According to recent SEC filings, the company has repurchased $1.5-1.6 billion of shares quarterly, signaling confidence in capital return.
The tangible book value per share has grown from $8.69 in Q1 2024 to $9.67 in Q2 2026, a 11% increase, even as the share count declines. This suggests that buybacks are accretive to book value, though the low dividend yield of 0.2% indicates a preference for repurchases over income distribution. The fortress balance sheet provides a cushion against potential regulatory changes or competitive shocks, but also implies that capital is not being deployed aggressively into high-ROI growth initiatives.
Credit Provisions Track Loan Growth
Loan loss provisions have risen 12% from $4.2 billion in Q1 2024 to $4.7 billion in Q2 2026, in line with modest loan book expansion. As disclosed in financial statements, this suggests credit quality remains stable, with no signs of deterioration in the consumer credit portfolio.
The provision increase appears proportional to loan growth, indicating that PayPal's credit products, including BNPL, are not experiencing a spike in defaults. However, the absolute level of provisions is significant relative to the loan book, and investors should monitor whether the reserve build is adequate for a potential consumer credit cycle. The transaction loss reserve, which covers fraud and credit losses, involves management judgment and could be a source of earnings volatility if released or built aggressively.
P/E Misleads on Earnings Quality
The most commonly misapplied ratio for PayPal is the P/E, which is distorted by stock-based compensation and provision volatility, obscuring true cash generation. As noted in company disclosures, SBC has historically been a significant non-GAAP adjustment, making GAAP earnings appear lower than cash earnings.
A trailing P/E of 10.57 may suggest deep value, but it fails to capture the impact of SBC, which can inflate non-GAAP earnings and understate the true cost of employee compensation. Analysts should instead focus on price-to-tangible book value and free cash flow yield, which better reflect the company's ability to generate shareholder value. The P/E also ignores the potential for provision releases to flatter earnings, as seen in the past, making it a less reliable metric for a company with PayPal's fee-based, low-capital-intensity model.