Paypal Holdings Stock Fair Value – PayPal Holdings to Issue $640M in Yen-Denominated Notes Through Underwriting Pact
June 3, 2023
🌥️Trending News
PAYPAL ($NASDAQ:PYPL): PayPal Holdings, Inc. is a leading digital payment provider that enables customers to securely pay from any device or location. The company has recently entered into an agreement to issue 640 million yen-denominated notes through a syndicate of underwriters in Japan. The proceeds from the offering will be used for general corporate purposes, which may include working capital, capital expenditures, acquisitions, repurchases of common stock, and repayment of debt.
This offering is part of PayPal’s strategy to diversify its funding sources and provide greater financial flexibility. It will also help to increase the company’s presence in Japan and add to its growing list of international investments.
Share Price
PayPal Holdings, Inc. announced on Friday that it has entered into an underwriting agreement with Goldman Sachs and Mitsubishi UFJ Financial Group to issue $640 million in yen-denominated notes. On Friday, PAYPAL HOLDINGS stock opened at $63.7 and closed at $64.0, up by 1.4% from previous closing price of 63.0. 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 |
| 28.07k | 2.71k | 11.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paypal Holdings. More…
| Operations | Investing | Financing |
| 5.77k | -2.63k | -3.1k |
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 |
| 77.19k | 57.33k | 17.69 |
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 |
| 15.4% | 19.3% | 14.8% |
| FCF Margin | ROE | ROA |
| 18.1% | 12.9% | 3.4% |
Analysis – Paypal Holdings Stock Fair Value
At GoodWhale, we have performed an analysis of PAYPAL HOLDINGS‘ financials and have determined that the fair value of their stock is around $202.0. This was derived from our proprietary Valuation Line. Currently, PAYPAL HOLDINGS stock is traded at $64.0, which represents a 68.3% undervaluation of the fair value. This presents an opportunity for potential investors to get in on the market at a discounted price. Our analysis has shown that the current stock market price does not accurately reflect the fair value of PAYPAL HOLDINGS stock, making it a potentially lucrative investment for those who are able to capitalize on the mispricing. More…
Peers
PayPal Holdings Inc is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee in exchange for benefits such as one-click transactions and password memory. PayPal’s primary competitors are Visa Inc, Mastercard Inc, American Express Co, and Discover Financial Services.
– Visa Inc ($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 recently entered into an underwriting pact for 640 million yen-denominated notes. This is a positive development for PayPal’s financing strategy, as it will provide a reliable source of financing and better returns. The deal further solidifies PayPal’s relationship with lenders, and it underscores the company’s commitment to efficient capital resources. This rate is significantly lower than the average cost of borrowing in the Japanese market, indicating that PayPal has secured a favorable deal.
Combined with the company’s strong balance sheet and cash flow, this financing should provide PayPal with the resources to pursue its strategic initiatives. Investors should take a closer look at PayPal’s financial position, as it continues to execute on its long-term growth plan.
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