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PayPal Holdings (XTER:2PP) Cyclically Adjusted PS Ratio : 3.50 (As of May. 20, 2024)


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What is PayPal Holdings Cyclically Adjusted PS Ratio?

As of today (2024-05-20), PayPal Holdings's current share price is €59.45. PayPal Holdings's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €17.00. PayPal Holdings's Cyclically Adjusted PS Ratio for today is 3.50.

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

XTER:2PP' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 2.94   Med: 3.55   Max: 4.42
Current: 3.54

During the past years, PayPal Holdings's highest Cyclically Adjusted PS Ratio was 4.42. The lowest was 2.94. And the median was 3.55.

XTER:2PP's Cyclically Adjusted PS Ratio is ranked worse than
56.91% of 376 companies
in the Credit Services industry
Industry Median: 2.905 vs XTER:2PP: 3.54

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

PayPal Holdings's adjusted revenue per share data for the three months ended in Mar. 2024 was €6.607. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €17.00 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


PayPal Holdings Cyclically Adjusted PS Ratio Historical Data

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

PayPal Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 3.53

PayPal Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS 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 - 3.98 3.41 3.53 3.67

Competitive Comparison of PayPal Holdings's Cyclically Adjusted PS Ratio

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

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

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



PayPal Holdings Cyclically Adjusted PS Ratio Calculation

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

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=59.45/17
=3.50

* 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 Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

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

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=6.607/131.7762*131.7762
=6.607

Current CPI (Mar. 2024) = 131.7762.

PayPal Holdings Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 1.229 100.560 1.611
201409 1.290 100.428 1.693
201412 1.497 99.070 1.991
201503 1.619 99.621 2.142
201506 1.678 100.684 2.196
201509 1.640 100.392 2.153
201512 1.900 99.792 2.509
201603 1.865 100.470 2.446
201606 1.941 101.688 2.515
201609 1.957 101.861 2.532
201612 2.320 101.863 3.001
201703 2.288 102.862 2.931
201706 2.297 103.349 2.929
201709 2.222 104.136 2.812
201712 2.572 104.011 3.259
201803 2.456 105.290 3.074
201806 2.747 106.317 3.405
201809 2.632 106.507 3.256
201812 3.111 105.998 3.868
201903 3.075 107.251 3.778
201906 3.210 108.070 3.914
201909 3.346 108.329 4.070
201912 3.758 108.420 4.568
202003 3.527 108.902 4.268
202006 3.946 108.767 4.781
202009 3.895 109.815 4.674
202012 4.225 109.897 5.066
202103 4.259 111.754 5.022
202106 4.366 114.631 5.019
202109 4.427 115.734 5.041
202112 5.175 117.630 5.797
202203 5.023 121.301 5.457
202206 5.560 125.017 5.861
202209 5.976 125.227 6.289
202212 6.098 125.222 6.417
202303 5.798 127.348 6.000
202306 6.038 128.729 6.181
202309 6.330 129.860 6.423
202312 6.796 129.419 6.920
202403 6.607 131.776 6.607

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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  (XTER:2PP) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


PayPal Holdings Cyclically Adjusted PS Ratio Related Terms

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


PayPal Holdings (XTER:2PP) 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.

PayPal Holdings (XTER:2PP) Headlines

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