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PayPal Holdings (NEOE:PYPL) Cyclically Adjusted PB Ratio : 5.11 (As of Dec. 11, 2024)


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What is PayPal Holdings Cyclically Adjusted PB Ratio?

As of today (2024-12-11), PayPal Holdings's current share price is C$6.59. PayPal Holdings's Cyclically Adjusted Book per Share for the quarter that ended in Sep. 2024 was C$1.29. PayPal Holdings's Cyclically Adjusted PB Ratio for today is 5.11.

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

NEOE:PYPL' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 3.09   Med: 3.8   Max: 5.22
Current: 5.15

During the past years, PayPal Holdings's highest Cyclically Adjusted PB Ratio was 5.22. The lowest was 3.09. And the median was 3.80.

NEOE:PYPL's Cyclically Adjusted PB Ratio is ranked worse than
90.07% of 403 companies
in the Credit Services industry
Industry Median: 1.05 vs NEOE:PYPL: 5.15

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

PayPal Holdings's adjusted book value per share data for the three months ended in Sep. 2024 was C$1.478. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is C$1.29 for the trailing ten years ended in Sep. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


PayPal Holdings Cyclically Adjusted PB Ratio Historical Data

The historical data trend for PayPal Holdings's Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Chart

PayPal Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 3.71

PayPal Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Cyclically Adjusted PB Ratio 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 3.59 3.71 3.96 3.39 4.53

Competitive Comparison of PayPal Holdings's Cyclically Adjusted PB Ratio

For the Credit Services subindustry, PayPal Holdings's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB 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's Cyclically Adjusted PB Ratio Distribution in the Credit Services Industry

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

* The bar in red indicates where PayPal Holdings's Cyclically Adjusted PB Ratio falls into.



PayPal Holdings Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

PayPal Holdings's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=6.59/1.29
=5.11

* 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 Cyclically Adjusted Book per Share for the quarter that ended in Sep. 2024 is calculated as:

For example, PayPal Holdings's adjusted Book Value per Share data for the three months ended in Sep. 2024 was:

Adj_Book=Book Value per Share/CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=1.478/133.0289*133.0289
=1.478

Current CPI (Sep. 2024) = 133.0289.

PayPal Holdings Quarterly Data

Book Value per Share CPI Adj_Book
201412 0.436 99.070 0.585
201503 0.486 99.621 0.649
201506 0.703 100.684 0.929
201509 0.781 100.392 1.035
201512 0.839 99.792 1.118
201603 0.810 100.470 1.072
201606 0.803 101.688 1.050
201609 0.839 101.861 1.096
201612 0.885 101.863 1.156
201703 0.891 102.862 1.152
201706 0.903 103.349 1.162
201709 0.858 104.136 1.096
201712 0.926 104.011 1.184
201803 0.871 105.290 1.100
201806 0.906 106.317 1.134
201809 0.910 106.507 1.137
201812 0.958 105.998 1.202
201903 0.941 107.251 1.167
201906 0.992 108.070 1.221
201909 1.012 108.329 1.243
201912 1.032 108.420 1.266
202003 1.034 108.902 1.263
202006 1.109 108.767 1.356
202009 1.135 109.815 1.375
202012 1.191 109.897 1.442
202103 1.132 111.754 1.347
202106 1.183 114.631 1.373
202109 1.297 115.734 1.491
202112 1.296 117.630 1.466
202203 1.223 121.301 1.341
202206 1.192 125.017 1.268
202209 1.282 125.227 1.362
202212 1.319 125.222 1.401
202303 1.318 127.348 1.377
202306 1.290 128.729 1.333
202309 1.346 129.860 1.379
202312 1.434 129.419 1.474
202403 1.449 131.776 1.463
202406 1.490 132.554 1.495
202409 1.478 133.029 1.478

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book 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.


PayPal Holdings  (NEOE:PYPL) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


PayPal Holdings Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Cyclically Adjusted PB Ratio 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 426 million active accounts at the end of 2023. The company also owns Venmo, a person-to-person payment platform.