Paypal Holdings Intrinsic Value Calculator – PAYPAL HOLDINGS Reports Second Quarter Earnings for FY2023
August 8, 2023
🌥️Earnings Overview
PAYPAL HOLDINGS ($NASDAQ:PYPL) released their results for the second quarter of FY2023, ending June 30, 2023. The company experienced a 7.1% growth in total revenue, with USD 7287.0 million reported. Their net income was an impressive USD 1029.0 million, a considerable improvement from the loss of USD 341.0 million in the year prior.
Stock Price
The stock opened at $66.7 on Thursday and plunged 12.3% from its previous closing price of 73.2, closing at $64.2. This was due to higher costs associated with investments in technology and growing customer base. Despite the dip in profits, PAYPAL HOLDINGS still reported strong growth across its core services.
Overall, PAYPAL HOLDINGS’ second quarter earnings report highlighted the company’s continued growth and potential expansion into new markets. It remains to be seen how the stock will react to the news, but investors should keep a close eye on the company’s performance in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Paypal Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 28.56k | 4.08k | 13.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paypal Holdings. More…
| Operations | Investing | Financing |
| 4.32k | 2.83k | -8.15k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Paypal Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 74.58k | 54.92k | 17.84 |
Key Ratios Snapshot
Some of the financial key ratios for Paypal Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.1% | 17.7% | 19.0% |
| FCF Margin | ROE | ROA |
| 12.8% | 17.1% | 4.5% |
Analysis – Paypal Holdings Intrinsic Value Calculator
At GoodWhale, we conducted an in-depth analysis of PAYPAL HOLDINGS‘ fundamentals and came to the conclusion that its intrinsic value is around $195.8, derived using our proprietary Valuation Line. We are confident that this accurately reflects the true value of the company’s stock, so it is quite striking to see that the current trading price of PAYPAL HOLDINGS’ shares is a full 67.2% lower than that, at just $64.2. This implies that there is considerable potential for investors to capitalize on a considerable amount of value in the stock. More…
Peers
PayPal Holdings Inc is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee in exchange for benefits such as one-click transactions and password memory. PayPal’s primary competitors are Visa Inc, Mastercard Inc, American Express Co, and Discover Financial Services.
– Visa Inc ($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. reported second quarter financial results for FY2023, showing total revenue of USD 7287.0 million, a 7.1% increase from the same period last year. Net income was also strong at USD 1029.0 million, compared to a loss of USD 341.0 million in the same period in the previous year. Despite the strong results, the stock price dropped on the news.
From an investing perspective, PayPal’s results indicate that it is continuing to generate strong revenue growth and profitability. The stock price decline could present a buying opportunity for investors seeking to capitalize on the company’s long-term growth prospects.
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