PayPal HoldingsCHIX:2PPD 77 Current Ratio is 1.26 as of Mar. 2026, which is 3% below its 10-year median of 1.30. GuruFocus rates CHIX:2PPD with a GF Score™ of 77/100 and a GF Value™ of €74.77 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 394 Credit Services companies, PayPal Holdings ranks worse than 78.68% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. PayPal Holdings's current ratio for the quarter that ended in Mar. 2026 was 1.26.
PayPal Holdings has a current ratio of 1.26. It generally indicates good short-term financial strength.
The historical rank and industry rank for PayPal Holdings's Current Ratio or its related term are showing as below:
CHIX:2PPd'
s Current Ratio Range Over the Past 10 Years
Min: 1.19 Med: 1.3 Max: 1.55
Current: 1.26
During the past 13 years, PayPal Holdings's highest Current Ratio was 1.55. The lowest was 1.19. And the median was 1.30.
CHIX:2PPd's Current Ratio is ranked worse than 78.68% of 394
companies
in the Credit Services industry
Industry Median: 5.055
vs CHIX:2PPd: 1.26
PayPal Holdings (CHIX:2PPd) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
PayPal Holdings Current Ratio Related Terms
PayPal Holdings Current Ratio Historical Data
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The historical data trend for PayPal Holdings's Current 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: Current Ratio Comparison
For the Credit Services subindustry, PayPal Holdings's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's Current 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 Current Ratio of 1.26 as of Mar. 2026. This is near median its historical median of 1.30. Over the past decade, PayPal Holdings' Current Ratio has ranged from 1.19 to 1.55. According to the industry distribution chart, PayPal Holdings ranks #310 out of 394 companies in the Credit Services industry, placing it in the top 78.7%.
Is PayPal Holdings' Current Ratio too high?
PayPal Holdings' current Current Ratio of 1.26 is near median its 10-year median of 1.30. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 1.55. The Credit Services industry median Current Ratio is 5.06. PayPal Holdings' value of 1.26 is 75.1% below this industry median. Based on the distribution chart, PayPal Holdings ranks #310 out of 394 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, PayPal Holdings has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PayPal Holdings' Current Ratio compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #310 out of 394 companies for Current Ratio. This places PayPal Holdings in the lower half of its industry. The industry median Current Ratio is 5.06. PayPal Holdings' value of 1.26 is 75.1% below this benchmark. Historically, PayPal Holdings' own Current Ratio has ranged from 1.19 to 1.55 over the past decade. While the company's 10-year median is 1.30 vs. the industry median of 5.06, 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 Current Ratio for a Credit Services company?
The median Current Ratio among Credit Services companies is 5.06, based on 394 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current Current Ratio of 1.26 is 75.1% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Credit Services industry, the median Current Ratio is 5.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current Current Ratio is 1.26, which is near median its own 10-year median of 1.30. 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 €74.77, compared to a current price of €38.20 — trading 48.9% below its estimated fair value. The current Current Ratio is 1.26, which is near median its 10-year median of 1.30 and 75.1% below the Credit Services industry median of 5.06. PayPal Holdings' overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current Current Ratio is 1.26 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 48.9% below its estimated GF Value™ of €74.77.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for CHIX:2PPD:
Current Ratio: 1.26 (near median its 10-year median of 1.30)
GF Value™: €74.77 vs. price of €38.20 (48.9% below fair value)
Industry Position: 75.1% below the Credit Services median (#310 of 394)
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.
77GF Score
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