Is PayPal Holdings, Inc. (PYPL) Undervalued?
Based on the current stock price of $59.97 and a P/E ratio of 12.04,PayPal Holdings, Inc. has a PEG ratio of 0.80.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 0.80, PYPL appears to be potentially undervalued relative to its growth rate of 15.14%.
Based on a PEG ratio of 0.75 (adjusted for dividends).
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How we analyzed PYPL
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 12.04and dividing it by the annual growth rate of 15.14%.
PEG = 12.04 (P/E) ÷ 15.14 (Growth) = 0.80
Frequently Asked Questions about PYPL
What is the current PEG Ratio for PayPal Holdings, Inc. (PYPL)?+
The current PEG Ratio for PayPal Holdings, Inc. is 0.80. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is PYPL stock undervalued right now?+
Based on the PEG ratio of 0.80, PayPal Holdings, Inc. appears to be potentially undervalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for PYPL?+
The PEGY ratio for PayPal Holdings, Inc. is 0.75. This metric accounts for dividend yield (0.93%), providing a more complete valuation picture.