Paypal Holdings Intrinsic Value Calculation – Will PayPal Holdings Inc Sink to the Bottom of the Financial Services Sector?

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PAYPAL ($NASDAQ:PYPL): PayPal Holdings Inc is one of the top financial services companies in the world, providing online and mobile payment services to its customers. The company is known for its customer service and innovative products, such as its PayPal Here mobile payment solution. The company has been gaining more attention lately due to its recent acquisition of Venmo, a leading mobile and digital payments company. This acquisition helped increase PayPal’s market share and customer base.

Additionally, the company has been expanding its services into new markets, including India and Brazil, which gives it greater access to potential customers. At the same time, however, the financial services sector is becoming increasingly competitive. Companies such as Apple, Google, and Amazon are entering the space with their own payment solutions, which could eventually take market share away from PayPal Holdings Inc. Furthermore, traditional banks and credit card companies also have their own digital payment solutions, which could also put pressure on PayPal’s bottom line. It is clear that the company is taking steps to position itself for long-term success, but whether it will sink to the bottom of the sector remains to be seen.

Price History

On Tuesday, PAYPAL HOLDINGS stock opened at $59.3 and closed at $57.9, down by 3.2% from prior closing price of 59.8. This sharp decline has raised concerns among shareholders who have seen the company’s stock struggle over the past months. The company’s share price has been mired in a slump, with analysts struggling to find a catalyst to push it back up.

However, the company’s recent performance has raised questions about its future prospects. While the company remains profitable, it is yet to be seen if it can recover its lost momentum and make a comeback in the industry. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Paypal Holdings. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Paypal Holdings. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Paypal Holdings. More…

Key Ratios Snapshot

Some of the financial key ratios for Paypal Holdings are shown below. More…

Analysis – Paypal Holdings Intrinsic Value Calculation

At GoodWhale, we have conducted an extensive analysis of PAYPAL HOLDINGS’ wellbeing. After carefully examining the company’s financial performance, we have come to the conclusion that the fair value of PAYPAL HOLDINGS share is around $176.6. This value was calculated through our proprietary Valuation Line. Currently, PAYPAL HOLDINGS stock is trading at $57.9, meaning it is undervalued by 67.2%. We believe that now is a great opportunity for investors to buy PAYPAL HOLDINGS stock while it is undervalued. More…

Peers

PayPal Holdings Inc is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee in exchange for benefits such as one-click transactions and password memory. PayPal’s primary competitors are Visa Inc, Mastercard Inc, American Express Co, and Discover Financial Services.

– Visa Inc ($NYSE:V)

Visa Inc is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories. Visa’s mission is to enable global commerce by making it easy, safe, and efficient for people and businesses to move money. The company’s products and services enable consumers and businesses to make purchases, send money, and accept payments. Visa also offers a suite of products and services for financial institutions, merchants, and government entities that help them to meet their customers’ needs.

Visa Inc had a market cap of 401.19B as of 2022. The company’s ROE was 31.6%. Visa Inc operates in more than 200 countries and territories and provides a wide range of products and services to consumers, businesses, financial institutions, and government entities.

– Mastercard Inc ($NYSE:MA)

Mastercard is a technology company that connects consumers, financial institutions, merchants, governments & businesses worldwide, enabling them to use secure & convenient electronic payments. As of 2022, Mastercard has a market cap of 295.32B and a Return on Equity of 110.3%. The company has been operational for over 50 years and is a leading player in the global payments industry. Mastercard is headquartered in Purchase, New York, United States.

– American Express Co ($NYSE:AXP)

American Express Co is a financial services company with a market cap of 104.64B as of 2022. The company provides credit cards, charge cards, and travelers’ cheques to consumers and businesses worldwide. It also operates a global merchant acquiring network. American Express Co was founded in 1850 and is headquartered in New York, New York.

Summary

PayPal Holdings Inc is an American financial services and technology company that enables digital and mobile payments on behalf of consumers and merchants. Its stock price has recently dropped, causing the firm to be at the bottom of the Financial Services Sector. To better understand this sector, investors should conduct a thorough analysis of the company’s financials, such as its income statements, balance sheets, and cash flow statements. Paying attention to key indicators such as revenue, operating income, net income, and EPS should be taken into consideration.

Furthermore, investors should consider the company’s competitive advantage, access to capital, future growth prospects, and any potential risk factors. With careful analysis of these factors, investors can determine whether PayPal Holdings Inc is a wise investment or not.