PayPal Holdings (NAS:PYPL) Shiller PE Ratio

: 25.61 (As of Today)

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As of today (2023-09-24), PayPal Holdings's current share price is $57.88. PayPal Holdings's E10 for the quarter that ended in Jun. 2023 was $2.26. PayPal Holdings's Shiller PE Ratio for today is 25.61.

The historical rank and industry rank for PayPal Holdings's Shiller PE Ratio or its related term are showing as below:

PYPL' s Shiller PE Ratio Range Over the Past 10 Years
Min: 25.59 Med: 28.13 Max: 32.73
Current: 25.59

During the past years, PayPal Holdings's highest Shiller PE Ratio was 32.73. The lowest was 25.59. And the median was 28.13.

PYPL's Shiller PE Ratio is ranked worse than
70.86% of 302 companies
in the Credit Services industry
Industry Median: 13.95 vs PYPL: 25.59

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

PayPal Holdings's adjusted earnings per share data for the three months ended in Jun. 2023 was $0.920. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.26 for the trailing ten years ended in Jun. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation

PayPal Holdings Shiller PE Ratio Historical Data

The historical data trend for PayPal Holdings's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PayPal Holdings Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Shiller PE Ratio

PayPal Holdings Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Shiller PE Ratio																-	-	-	-	29.50

Competitive Comparison

For the Credit Services subindustry, PayPal Holdings's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

PayPal Holdings Shiller PE Ratio Distribution

For the Credit Services industry and Financial Services sector, PayPal Holdings's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Shiller PE Ratio falls in comparison to its industry or sector. The grey bar indicates the Shiller PE Ratio's extreme value range as defined by GuruFocus.

PayPal Holdings Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

PayPal Holdings's Shiller PE Ratio for today is calculated as

Shiller PE Ratio	=	Share Price	/	E10
	=	57.88	/	2.26
	=	25.61

PayPal Holdings's E10 for the quarter that ended in Jun. 2023 is calculated as:

For example, PayPal Holdings's adjusted earnings per share data for the three months ended in Jun. 2023 was:

Adj_EPS	=	Earnings per Share (Diluted)	/	CPI of Jun. 2023 (Change)	*	Current CPI (Jun. 2023)
	=	0.92	/	128.7287	*	128.7287
	=	0.920

Current CPI (Jun. 2023) = 128.7287.

PayPal Holdings Quarterly Data

	Earnings per Share (Diluted)	CPI	Adj_EPS
201212	0.000	96.871	0.000
201312	0.000	98.326	0.000
201403	-0.326	99.695	-0.421
201406	0.237	100.560	0.303
201409	0.197	100.428	0.253
201412	0.241	99.070	0.313
201503	0.209	99.621	0.270
201506	0.250	100.684	0.320
201509	0.250	100.392	0.321
201512	0.300	99.792	0.387
201603	0.300	100.470	0.384
201606	0.270	101.688	0.342
201609	0.270	101.861	0.341
201612	0.320	101.863	0.404
201703	0.320	102.862	0.400
201706	0.340	103.349	0.423
201709	0.310	104.136	0.383
201712	0.500	104.011	0.619
201803	0.420	105.290	0.513
201806	0.440	106.317	0.533
201809	0.360	106.507	0.435
201812	0.490	105.998	0.595
201903	0.560	107.251	0.672
201906	0.690	108.070	0.822
201909	0.390	108.329	0.463
201912	0.430	108.420	0.511
202003	0.070	108.902	0.083
202006	1.290	108.767	1.527
202009	0.860	109.815	1.008
202012	1.320	109.897	1.546
202103	0.920	111.754	1.060
202106	1.000	114.631	1.123
202109	0.920	115.734	1.023
202112	0.680	117.630	0.744
202203	0.430	121.301	0.456
202206	-0.290	125.017	-0.299
202209	1.150	125.227	1.182
202212	0.800	125.222	0.822
202303	0.700	127.348	0.708
202306	0.920	128.729	0.920

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

PayPal Holdings (NAS:PYPL) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.

Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.

PayPal Holdings Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.

PayPal Holdings (NAS:PYPL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » PayPal Holdings Inc (NAS:PYPL) » Definitions » Shiller PE Ratio

Comparable Companies

Traded in Other Exchanges

PYPL:Peru PYPL:Mexico PYPL_KZ:Kazakhstan 2PPd:UK 0R9U:UK 2PP:Germany PYPL:Canada PYPL34:Brazil PYPL:Austria PYPL:Argentina

Address

2211 North First Street, San Jose, CA, USA, 95131

Website

https://www.paypal.com

PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 435 million active accounts at the end of 2022. The company also owns Venmo, a person-to-person payment platform.

Executives

John C. Kim	officer: EVP, Chief Product Officer	C/O OWLET, INC., 2500 EXECUTIVE PARKWAY, SUITE 500, LEHI UT 84043
Gabrielle Scheibe	officer: See Remarks	2211 NORTH FIRST STREET, SAN JOSE CA 95131
Blake J Jorgensen	officer: EVP, Chief Financial Officer	209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Enrique Lores	director	3000 HANOVER STREET, PALO ALTO CA 94304
Jeffrey William Karbowski	officer: VP, Chief Accounting Officer	121 ALBRIGHT WAY, LOS GATOS CA 95032
Peggy Alford	officer: EVP, Global Sales	435 TASSO STREET, PALO ALTO CA 94301
John D Rainey	officer: CFO and EVP, Global Cust Oper	C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Allison Johnson	officer: EVP, Chief Marketing Officer	C/O PAYPAL HOLDINGS INC, 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Mark Britto	officer: EVP, Global Sales and Credit	C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Deborah M. Messemer	director	C/O ALLOGENE THERAPEUTICS, INC., 210 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Rodney C Adkins	director	55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Ann Sarnoff	director	C/O HSN, INC., 1 HSN DRIVE, SAINT PETERSBURG FL 33729
Aaron Karczmer	officer: SVP, CR & Compliance Officer	PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Belinda J. Johnson	director	394 PACIFIC AVENUE, FLOOR 2, SAN FRANCISCO CA 94111
Sripada Shivananda	officer: SVP, Chief Technology Officer	2211 NORTH FIRST STREET, 2211 NORTH FIRST STREET, SAN JOSE CA 95131