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PayPal Holdings (BSP:PYPL34) Cyclically Adjusted FCF per Share : R$1.18 (As of Mar. 2025)


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What is PayPal Holdings Cyclically Adjusted FCF per Share?

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. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

PayPal Holdings's adjusted free cash flow per share for the three months ended in Mar. 2025 was R$0.278. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is R$1.18 for the trailing ten years ended in Mar. 2025.

During the past 12 months, PayPal Holdings's average Cyclically Adjusted FCF Growth Rate was 13.00% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

As of today (2025-06-01), PayPal Holdings's current stock price is R$20.08. PayPal Holdings's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 was R$1.18. PayPal Holdings's Cyclically Adjusted Price-to-FCF of today is 17.02.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of PayPal Holdings was 23.40. The lowest was 14.03. And the median was 17.54.


PayPal Holdings Cyclically Adjusted FCF per Share Historical Data

The historical data trend for PayPal Holdings's Cyclically Adjusted FCF per Share 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 Cyclically Adjusted FCF per Share Chart

PayPal Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 0.86 1.26

PayPal Holdings Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cyclically Adjusted FCF per Share Get a 7-Day Free Trial 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 0.93 1.06 1.06 1.26 1.18

Competitive Comparison of PayPal Holdings's Cyclically Adjusted FCF per Share

For the Credit Services subindustry, PayPal Holdings's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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's Cyclically Adjusted Price-to-FCF Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, PayPal Holdings's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Cyclically Adjusted Price-to-FCF falls into.


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PayPal Holdings Cyclically Adjusted FCF per Share Calculation

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. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

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.

For example, PayPal Holdings's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2025 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=0.278/134.9266*134.9266
=0.278

Current CPI (Mar. 2025) = 134.9266.

PayPal Holdings Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201506 0.050 100.684 0.067
201509 0.083 100.392 0.112
201512 0.089 99.792 0.120
201603 0.091 100.470 0.122
201606 0.070 101.688 0.093
201609 0.083 101.861 0.110
201612 0.106 101.863 0.140
201703 0.078 102.862 0.102
201706 0.101 103.349 0.132
201709 0.108 104.136 0.140
201712 -0.044 104.011 -0.057
201803 -0.071 105.290 -0.091
201806 -0.027 106.317 -0.034
201809 0.762 106.507 0.965
201812 0.147 105.998 0.187
201903 0.131 107.251 0.165
201906 0.168 108.070 0.210
201909 0.160 108.329 0.199
201912 0.104 108.420 0.129
202003 0.250 108.902 0.310
202006 0.346 108.767 0.429
202009 0.243 109.815 0.299
202012 0.321 109.897 0.394
202103 0.364 111.754 0.439
202106 0.225 114.631 0.265
202109 0.286 115.734 0.333
202112 0.241 117.630 0.276
202203 0.218 121.301 0.242
202206 0.234 125.017 0.253
202209 0.356 125.227 0.384
202212 0.329 125.222 0.354
202303 0.230 127.348 0.244
202306 -0.076 128.729 -0.080
202309 0.248 129.860 0.258
202312 0.559 129.419 0.583
202403 0.409 131.776 0.419
202406 0.352 132.554 0.358
202409 0.391 133.029 0.397
202412 0.660 133.157 0.669
202503 0.278 134.927 0.278

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


PayPal Holdings  (BSP:PYPL34) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

PayPal Holdings's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=20.08/1.18
=17.02

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of PayPal Holdings was 23.40. The lowest was 14.03. And the median was 17.54.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


PayPal Holdings Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


PayPal Holdings 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 434 million active accounts at the end of 2024. The company also owns Venmo, a person-to-person payment platform.

PayPal Holdings Headlines

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