Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
PayPal HoldingsCHIX:2PPD 80 Cash Ratio is 0.20 as of Mar. 2026, which is 23% below its 10-year median of 0.26. GuruFocus rates CHIX:2PPD with a GF Score™ of 80/100 and a GF Value™ of €56.25 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 387 Credit Services companies, PayPal Holdings ranks worse than 71.83% on this metric.
PayPal Holdings has a Cash Ratio of 0.20. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for PayPal Holdings's Cash Ratio or its related term are showing as below:
CHIX:2PPd'
s Cash Ratio Range Over the Past 10 Years
Min: 0.18 Med: 0.26 Max: 0.4
Current: 0.2
During the past 13 years, PayPal Holdings's highest Cash Ratio was 0.40. The lowest was 0.18. And the median was 0.26.
CHIX:2PPd's Cash Ratio is ranked worse than 71.83% of 387
companies
in the Credit Services industry
Industry Median: 0.63
vs CHIX:2PPd: 0.20
PayPal Holdings (CHIX:2PPd) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
PayPal Holdings Cash Ratio Related Terms
PayPal Holdings Cash Ratio Historical Data
* Premium members only.
The historical data trend for PayPal Holdings's Cash 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.
CHIX:2PPD vs AFRM, SYF, SOFI: Cash Ratio Comparison
For the Credit Services subindustry, PayPal Holdings's Cash Ratio, along with its competitors' market caps and Cash 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 Cash Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's Cash Ratio falls into.
* 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 (CHIX:2PPD) has a Cash Ratio of 0.20 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on PayPal Holdings and its competitors. This is 23% below median its historical median of 0.26. Over the past decade, PayPal Holdings' Cash Ratio has ranged from 0.18 to 0.40. According to the industry distribution chart, PayPal Holdings ranks #278 out of 387 companies in the Credit Services industry, placing it in the top 71.8%.
Is PayPal Holdings' Cash Ratio too high?
PayPal Holdings' current Cash Ratio of 0.20 is 23% below median its 10-year median of 0.26. Over the past 10 years, this metric has ranged from a low of 0.18 to a high of 0.40. The Credit Services industry median Cash Ratio is 0.63. PayPal Holdings' value of 0.20 is 68.3% below this industry median. Based on the distribution chart, PayPal Holdings ranks #278 out of 387 companies in the Credit Services industry, which is below the industry midpoint. Overall, PayPal Holdings has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PayPal Holdings' Cash Ratio compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #278 out of 387 companies for Cash Ratio. This places PayPal Holdings in the lower half of its industry. The industry median Cash Ratio is 0.63. PayPal Holdings' value of 0.20 is 68.3% below this benchmark. Historically, PayPal Holdings' own Cash Ratio has ranged from 0.18 to 0.40 over the past decade. While the company's 10-year median is 0.26 vs. the industry median of 0.63, PayPal Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Credit Services company?
The median Cash Ratio among Credit Services companies is 0.63, based on 387 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current Cash Ratio of 0.20 is 68.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median Cash Ratio is 0.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current Cash Ratio is 0.20, which is 23% below median its own 10-year median of 0.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PayPal Holdings stock overvalued right now?
Based on GuruFocus' analysis, PayPal Holdings (CHIX:2PPD) is currently considered Significantly Undervalued. The stock's GF Value™ is €56.25, compared to a current price of €38.20 — trading 32.1% below its estimated fair value. The current Cash Ratio is 0.20, which is 23% below median its 10-year median of 0.26 and 68.3% below the Credit Services industry median of 0.63. PayPal Holdings' overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current Cash Ratio is 0.20 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PayPal Holdings (CHIX:2PPD) Overvalued in 2026?
Based on GuruFocus' analysis, PayPal Holdings stock appears to be undervalued.
The current stock price of €38.20 is trading 32.1% below its estimated GF Value™ of €56.25.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for CHIX:2PPD:
Cash Ratio: 0.20 (23% below median its 10-year median of 0.26)
GF Value™: €56.25 vs. price of €38.20 (32.1% below fair value)
Industry Position: 68.3% below the Credit Services median (#278 of 387)
No single metric tells the full story. See the CHIX:2PPD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 439 million active accounts at the end of 2025. The company also owns Venmo, a person-to-person payment platform.
80GF Score
Get the complete analysis for CHIX:2PPD
Cash Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CHIX:2PPD has been successfully added to your 
