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PayPal Holdings (NAS:PYPL) Shiller PE Ratio

: 25.82 (As of Today)
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As of today (2023-12-04), PayPal Holdings's current share price is $59.91. PayPal Holdings's E10 for the quarter that ended in Sep. 2023 was $2.32. PayPal Holdings's Shiller PE Ratio for today is 25.82.

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: 21.72   Med: 26.29   Max: 32.73
Current: 25.82

During the past years, PayPal Holdings's highest Shiller PE Ratio was 32.73. The lowest was 21.72. And the median was 26.29.

PYPL's Shiller PE Ratio is ranked worse than
69.18% of 305 companies
in the Credit Services industry
Industry Median: 14.31 vs PYPL: 25.82

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 Sep. 2023 was $0.930. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.32 for the trailing ten years ended in Sep. 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
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

PayPal Holdings Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - 29.50 25.21

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.


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 into.



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
=59.91/2.32
=25.82

* 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.

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

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

Adj_EPS=Earnings per Share (Diluted)/CPI of Sep. 2023 (Change)*Current CPI (Sep. 2023)
=0.93/129.8595*129.8595
=0.930

Current CPI (Sep. 2023) = 129.8595.

PayPal Holdings Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201312 0.000 98.326 0.000
201403 -0.326 99.695 -0.425
201406 0.237 100.560 0.306
201409 0.197 100.428 0.255
201412 0.241 99.070 0.316
201503 0.209 99.621 0.272
201506 0.250 100.684 0.322
201509 0.250 100.392 0.323
201512 0.300 99.792 0.390
201603 0.300 100.470 0.388
201606 0.270 101.688 0.345
201609 0.270 101.861 0.344
201612 0.320 101.863 0.408
201703 0.320 102.862 0.404
201706 0.340 103.349 0.427
201709 0.310 104.136 0.387
201712 0.500 104.011 0.624
201803 0.420 105.290 0.518
201806 0.440 106.317 0.537
201809 0.360 106.507 0.439
201812 0.490 105.998 0.600
201903 0.560 107.251 0.678
201906 0.690 108.070 0.829
201909 0.390 108.329 0.468
201912 0.430 108.420 0.515
202003 0.070 108.902 0.083
202006 1.290 108.767 1.540
202009 0.860 109.815 1.017
202012 1.320 109.897 1.560
202103 0.920 111.754 1.069
202106 1.000 114.631 1.133
202109 0.920 115.734 1.032
202112 0.680 117.630 0.751
202203 0.430 121.301 0.460
202206 -0.290 125.017 -0.301
202209 1.150 125.227 1.193
202212 0.800 125.222 0.830
202303 0.700 127.348 0.714
202306 0.920 128.729 0.928
202309 0.930 129.860 0.930

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

Address
2211 North First Street, San Jose, CA, USA, 95131
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
James Alexander Chriss director, officer: President and CEO C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
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