PayPal Holdings, Inc. (PYPL) Financial Ratios
13 years of historical data (2013–2025) · Financial Services · Financial - Credit Services
EV/EBITDA
↓
6.33
↓-65% vs avg
5yr avg: 18.34
30Y Low8.3·High63.0
P/FCF
↓
7.65
↓-62% vs avg
5yr avg: 20.25
30Y Low10.2·High55.7
P/B Ratio
↓
2.21
↓-55% vs avg
5yr avg: 4.94
30Y Low2.8·High13.9
ROE
↑
25.7%
↓+32% vs avg
5yr avg: 19.6%
30Y Low5%·High26%
Debt/EBITDA
↓
1.42
↓-14% vs avg
5yr avg: 1.64
30Y Low0.3·High2.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
PYPL Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
PayPal Holdings, Inc. trades at 8.6x earnings, 69% below its 5-year average of 27.2x, sitting at the 0th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.4x, the stock trades at a discount of 36%. On a free-cash-flow basis, the stock trades at 7.6x P/FCF, 62% below the 5-year average of 20.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $42.6B | $56.5B | $88.7B | $68.0B | $82.5B | $223.7B | $278.0B | $128.5B | $101.2B | $89.9B | $48.1B |
| Enterprise Value | $44.5B | $58.4B | $92.0B | $68.6B | $85.1B | $227.5B | $282.1B | $126.1B | $95.6B | $88.0B | $46.5B |
| P/E Ratio → | 8.55 | 10.79 | 21.39 | 15.99 | 34.08 | 53.57 | 66.16 | 52.26 | 49.18 | 50.08 | 34.32 |
| P/S Ratio | 1.28 | 1.70 | 2.79 | 2.28 | 3.00 | 8.82 | 12.96 | 7.23 | 6.55 | 6.86 | 4.43 |
| P/B Ratio | 2.21 | 2.79 | 4.34 | 3.23 | 4.07 | 10.29 | 13.86 | 7.59 | 6.57 | 5.62 | 3.27 |
| P/FCF | 7.65 | 10.16 | 13.10 | 16.11 | 16.15 | 45.75 | 55.73 | 38.17 | 21.72 | 48.22 | 19.31 |
| P/OCF | 6.63 | 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
PYPL EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
PayPal Holdings, Inc.'s enterprise value stands at 6.3x EBITDA, 65% below its 5-year average of 18.3x. The Financial Services sector median is 11.5x, placing the stock at a 45% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.76 | 2.89 | 2.30 | 3.09 | 8.97 | 13.15 | 7.10 | 6.19 | 6.72 | 4.29 |
| EV / EBITDA | 6.33 | 8.32 | 14.47 | 11.24 | 16.51 | 41.16 | 63.01 | 34.73 | 32.18 | 30.02 | 20.12 |
| EV / EBIT | 7.34 | 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 |
PYPL Profitability
Margins and return-on-capital ratios measuring operating efficiency
PayPal Holdings, Inc. earns an operating margin of 18.3%, below the Financial Services sector average of 21.4%. Operating margins have expanded from 16.9% to 18.3% over the past 3 years, signaling improving operational efficiency. ROE of 25.7% indicates solid capital efficiency, compared to the sector median of 9.5%. ROIC of 15.0% represents solid returns on invested capital versus a sector median of 5.7%.
Margins
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% |
Return on Capital
| 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% |
PYPL Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
PayPal Holdings, Inc. carries a Debt/EBITDA ratio of 1.4x, which is manageable (66% below the sector average of 4.1x). Net debt stands at $1.9B ($10.0B total debt minus $8.0B cash). Interest coverage of 15.3x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 | — |
PYPL Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.29x means PayPal Holdings, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity.
| 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 | — | — | — | — | — | — | — | — | — | — | — |
PYPL Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
PayPal Holdings, Inc. returns 14.5% to shareholders annually — split between a 0.3% dividend yield and 14.2% buyback yield. The payout ratio of 2.5% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 11.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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% | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.7% | 9.3% | 4.7% | 6.3% | 2.9% | 1.9% | 1.5% | 1.9% | 2.0% | 2.0% | 2.9% |
| FCF Yield | 13.1% | 9.8% | 7.6% | 6.2% | 6.2% | 2.2% | 1.8% | 2.6% | 4.6% | 2.1% | 5.2% |
| Buyback Yield | 14.2% | 10.7% | 6.8% | 7.4% | 5.1% | 1.5% | 0.6% | 1.1% | 3.5% | 1.1% | 2.1% |
| Total Shareholder Yield | 14.5% | 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 |
Peer Comparison
Compare PYPL with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 PYPLYou | $43B | 8.6 | 6.3 | 7.6 | 46.6% | 18.3% | 25.7% | 15.0% | 1.4 |
 V | $612B | 31.3 | 24.5 | 28.3 | 80.4% | 60.0% | 52.1% | 29.2% | 1.0 |
 MA | $435B | 29.8 | 21.6 | 25.7 | 83.4% | 59.2% | 209.9% | 56.5% | 0.9 |
 FIS | $24B | 61.3 | 7.5 | 9.7 | 36.9% | 16.5% | 2.6% | 6.0% | 1.1 |
 FISV | $30B | 8.9 | 6.6 | 6.9 | 59.4% | 26.9% | 13.0% | 8.1% | 3.3 |
 GPN | $16B | 11.9 | 10.4 | 8.1 | 72.6% | 19.1% | 6.0% | 3.0% | 7.6 |
 WEX | $5B | 17.0 | 8.9 | 15.9 | 54.9% | 25.4% | 22.3% | 9.6% | 4.8 |
 AFRM | $22B | 437.2 | 205.7 | 36.3 | 67.5% | -2.7% | 1.8% | -0.7% | 57.0 |
 SOFI | $21B | 41.8 | 23.3 | — | 75.1% | 11.0% | 5.7% | 3.6% | 2.4 |
 SEZL | $3B | 23.1 | 16.9 | 14.0 | 85.4% | 39.3% | 103.3% | 52.7% | 0.8 |
 RELY | $5B | 76.5 | 45.0 | 16.8 | — | 4.7% | 8.9% | 14.0% | 1.9 |
| Financial Services Median | — | 13.4 | 11.5 | 10.7 | 62.9% | 21.4% | 9.5% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 13 years · Updated daily
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Start ComparisonPYPL — Frequently Asked Questions
Quick answers to the most common questions about buying PYPL stock.
What is PayPal Holdings, Inc.'s P/E ratio?
PayPal Holdings, Inc.'s current P/E ratio is 8.6x. The historical average is 38.5x.
What is PayPal Holdings, Inc.'s EV/EBITDA?
PayPal Holdings, Inc.'s current EV/EBITDA is 6.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.6x.
What is PayPal Holdings, Inc.'s ROE?
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%.
Is PYPL stock overvalued?
Based on historical data, PayPal Holdings, Inc. is trading at a P/E of 8.6x. Compare with industry peers and growth rates for a complete picture.
What is PayPal Holdings, Inc.'s dividend yield?
PayPal Holdings, Inc.'s current dividend yield is 0.29% with a payout ratio of 2.5%.
What are PayPal Holdings, Inc.'s profit margins?
PayPal Holdings, Inc. has 46.6% gross margin and 18.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does PayPal Holdings, Inc. have?
PayPal Holdings, Inc.'s Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.