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PayPal Holdings (NEOE:PYPL) Cyclically Adjusted Price-to-FCF : 19.38 (As of Apr. 30, 2024)


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What is PayPal Holdings Cyclically Adjusted Price-to-FCF?

As of today (2024-04-30), PayPal Holdings's current share price is C$5.04. PayPal Holdings's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was C$0.26. PayPal Holdings's Cyclically Adjusted Price-to-FCF for today is 19.38.

The historical rank and industry rank for PayPal Holdings's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

NEOE:PYPL' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 15   Med: 17.92   Max: 22.35
Current: 18.9

During the past years, PayPal Holdings's highest Cyclically Adjusted Price-to-FCF was 22.35. The lowest was 15.00. And the median was 17.92.

NEOE:PYPL's Cyclically Adjusted Price-to-FCF is ranked worse than
71.57% of 102 companies
in the Credit Services industry
Industry Median: 10.11 vs NEOE:PYPL: 18.90

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 adjusted free cash flow per share data for the three months ended in Dec. 2023 was C$0.193. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is C$0.26 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


PayPal Holdings Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for PayPal Holdings's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

PayPal Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 17.59

PayPal Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF 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 - - 20.15 17.41 17.59

Competitive Comparison of PayPal Holdings's Cyclically Adjusted Price-to-FCF

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.



PayPal Holdings Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF 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 Price-to-FCF.

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

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=5.04/0.26
=19.38

* 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 FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, PayPal Holdings's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.193/129.4194*129.4194
=0.193

Current CPI (Dec. 2023) = 129.4194.

PayPal Holdings Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.019 99.695 0.025
201406 0.027 100.560 0.035
201409 0.025 100.428 0.032
201412 0.031 99.070 0.040
201503 0.023 99.621 0.030
201506 0.025 100.684 0.032
201509 0.035 100.392 0.045
201512 0.039 99.792 0.051
201603 0.041 100.470 0.053
201606 0.033 101.688 0.042
201609 0.042 101.861 0.053
201612 0.053 101.863 0.067
201703 0.042 102.862 0.053
201706 0.051 103.349 0.064
201709 0.053 104.136 0.066
201712 -0.021 104.011 -0.026
201803 -0.035 105.290 -0.043
201806 -0.012 106.317 -0.015
201809 0.305 106.507 0.371
201812 0.064 105.998 0.078
201903 0.057 107.251 0.069
201906 0.073 108.070 0.087
201909 0.065 108.329 0.078
201912 0.042 108.420 0.050
202003 0.090 108.902 0.107
202006 0.114 108.767 0.136
202009 0.075 109.815 0.088
202012 0.101 109.897 0.119
202103 0.102 111.754 0.118
202106 0.069 114.631 0.078
202109 0.086 115.734 0.096
202112 0.069 117.630 0.076
202203 0.070 121.301 0.075
202206 0.075 125.017 0.078
202209 0.114 125.227 0.118
202212 0.107 125.222 0.111
202303 0.076 127.348 0.077
202306 -0.026 128.729 -0.026
202309 0.085 129.860 0.085
202312 0.193 129.419 0.193

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


PayPal Holdings  (NEOE:PYPL) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


PayPal Holdings Cyclically Adjusted Price-to-FCF Related Terms

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


PayPal Holdings (NEOE:PYPL) 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 435 million active accounts at the end of 2022. The company also owns Venmo, a person-to-person payment platform.