PayPal HoldingsPYPL +2.21%87 Cyclically Adjusted PB Ratio is 2.40 as of Jul. 11, 2026, which is 35% below its 10-year median of 3.71. GuruFocus rates PYPL with a GF Score™ of 87/100 and a GF Value™ of $83.18 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 423 Credit Services companies, PayPal Holdings ranks worse than 77.54% on this metric.
The historical rank and industry rank for PayPal Holdings's Cyclically Adjusted PB Ratio or its related term are showing as below:
PYPL'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 2.14 Med: 3.71 Max: 5.29
Current: 2.35
During the past years, PayPal Holdings's highest Cyclically Adjusted PB Ratio was 5.29. The lowest was 2.14. And the median was 3.71.
PYPL's Cyclically Adjusted PB Ratio is ranked worse than 77.54% of 423
companies
in the Credit Services industry
Industry Median: 0.96
vs PYPL: 2.35
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 Mar. 2026 was $22.448. 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 $19.31 for the trailing ten years ended in Mar. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
PayPal Holdings (NAS: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
PayPal Holdings Cyclically Adjusted PB Ratio Historical Data
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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.
PayPal Holdings Cyclically Adjusted PB Ratio Chart
PYPL vs AFRM, SYF, SOFI: Cyclically Adjusted PB Ratio Comparison
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 Cyclically Adjusted PB Ratio vs 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
* 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.
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.
What does a Cyclically Adjusted PB Ratio of 2.40 mean?
PayPal Holdings (PYPL) has a Cyclically Adjusted PB Ratio of 2.40 as of Jul. 11, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on PayPal Holdings and its competitors. This is 35% below median its historical median of 3.71. Over the past decade, PayPal Holdings' Cyclically Adjusted PB Ratio has ranged from 2.14 to 5.29. According to the industry distribution chart, PayPal Holdings ranks #328 out of 423 companies in the Credit Services industry, placing it in the top 77.5%.
Is PayPal Holdings' Cyclically Adjusted PB Ratio too high?
PayPal Holdings' current Cyclically Adjusted PB Ratio of 2.40 is 35% below median its 10-year median of 3.71. Over the past 10 years, this metric has ranged from a low of 2.14 to a high of 5.29. The Credit Services industry median Cyclically Adjusted PB Ratio is 0.96. PayPal Holdings' value of 2.40 is 150% above this industry median. Based on the distribution chart, PayPal Holdings ranks #328 out of 423 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, PayPal Holdings has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PayPal Holdings' Cyclically Adjusted PB Ratio compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #328 out of 423 companies for Cyclically Adjusted PB Ratio. This places PayPal Holdings in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 0.96. PayPal Holdings' value of 2.40 is 150% above this benchmark. Historically, PayPal Holdings' own Cyclically Adjusted PB Ratio has ranged from 2.14 to 5.29 over the past decade. While the company's 10-year median is 3.71 vs. the industry median of 0.96, PayPal Holdings has consistently been above 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 Cyclically Adjusted PB Ratio for a Credit Services company?
The median Cyclically Adjusted PB Ratio among Credit Services companies is 0.96, based on 423 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current Cyclically Adjusted PB Ratio of 2.40 is 150% above 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 Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median Cyclically Adjusted PB Ratio is 0.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current Cyclically Adjusted PB Ratio is 2.40, which is 35% below median its own 10-year median of 3.71. 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 (PYPL) is currently considered Significantly Undervalued. The stock's GF Value™ is $83.18, compared to a current price of $46.32 — trading 44.3% below its estimated fair value. The current Cyclically Adjusted PB Ratio is 2.40, which is 35% below median its 10-year median of 3.71 and 150% above the Credit Services industry median of 0.96. PayPal Holdings' overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For PayPal Holdings (PYPL), the current Cyclically Adjusted PB Ratio is 2.40 as of Jul. 11, 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 (PYPL) Overvalued in 2026?
Based on GuruFocus' analysis, PayPal Holdings stock appears to be undervalued.
The current stock price of $46.32 is trading 44.3% below its estimated GF Value™ of $83.18.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for PYPL:
Cyclically Adjusted PB Ratio: 2.40 (35% below median its 10-year median of 3.71)
GF Value™: $83.18 vs. price of $46.32 (44.3% below fair value)
Industry Position: 150% above the Credit Services median (#328 of 423)
No single metric tells the full story. See the PYPL 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.
87GF Score
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