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PayPal Holdings (NAS:PYPL) Cyclically Adjusted PB Ratio

: 3.63 (As of Today)
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As of today (2024-02-27), PayPal Holdings's current share price is $60.145. PayPal Holdings's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was $16.55. PayPal Holdings's Cyclically Adjusted PB Ratio for today is 3.63.

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: 3.09   Med: 3.69   Max: 4.6
Current: 3.58

During the past years, PayPal Holdings's highest Cyclically Adjusted PB Ratio was 4.60. The lowest was 3.09. And the median was 3.69.

PYPL's Cyclically Adjusted PB Ratio is ranked worse than
86.35% of 249 companies
in the Credit Services industry
Industry Median: 0.96 vs PYPL: 3.58

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 Dec. 2023 was $19.637. 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 $16.55 for the trailing ten years ended in Dec. 2023.

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 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - 3.71

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 PB Ratio 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 Premium Member Only Premium Member Only Premium Member Only - - 4.15 3.59 3.71

Competitive 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 Distribution

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
=60.145/16.55
=3.63

* 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 Dec. 2023 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=19.637/129.4194*129.4194
=19.637

Current CPI (Dec. 2023) = 129.4194.

PayPal Holdings Quarterly Data

Book Value per Share CPI Adj_Book
201403 0.000 99.695 0.000
201406 0.000 100.560 0.000
201409 0.000 100.428 0.000
201412 6.943 99.070 9.070
201503 7.082 99.621 9.200
201506 10.443 100.684 13.423
201509 10.822 100.392 13.951
201512 11.241 99.792 14.578
201603 11.257 100.470 14.501
201606 11.447 101.688 14.569
201609 11.768 101.861 14.952
201612 12.189 101.863 15.486
201703 12.229 102.862 15.386
201706 12.478 103.349 15.626
201709 12.839 104.136 15.956
201712 13.328 104.011 16.584
201803 12.376 105.290 15.212
201806 12.685 106.317 15.441
201809 12.831 106.507 15.591
201812 13.106 105.998 16.002
201903 12.933 107.251 15.606
201906 13.712 108.070 16.421
201909 14.040 108.329 16.773
201912 14.395 108.420 17.183
202003 13.612 108.902 16.177
202006 15.038 108.767 17.893
202009 15.770 109.815 18.585
202012 17.086 109.897 20.121
202103 16.556 111.754 19.173
202106 17.791 114.631 20.086
202109 18.816 115.734 21.041
202112 18.602 117.630 20.466
202203 17.746 121.301 18.934
202206 17.099 125.017 17.701
202209 17.667 125.227 18.259
202212 17.847 125.222 18.445
202303 17.699 127.348 17.987
202306 17.841 128.729 17.937
202309 18.278 129.860 18.216
202312 19.637 129.419 19.637

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  (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

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 (NAS: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.
Executives
Peggy Alford officer: EVP, Global Sales 435 TASSO STREET, PALO ALTO CA 94301
Jonathan Auerbach officer: SVP, Strategy & Growth Off. C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
James Alexander Chriss director, officer: President and CEO C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Gabrielle Scheibe officer: See Remarks 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Daniel H Schulman director, officer: President and Chief Executive C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
John C. Kim officer: EVP, Chief Product Officer C/O OWLET, INC., 2500 EXECUTIVE PARKWAY, SUITE 500, LEHI UT 84043
Blake J Jorgensen officer: EVP, Chief Financial Officer 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Mark Britto officer: EVP, Global Sales and Credit C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Enrique Lores director 3000 HANOVER STREET, PALO ALTO CA 94304
Frank D Yeary director C/O INTEL CORPORATION, 2200 MISSION COLLEGE BLVD., RN4-151, SANTA CLARA CA 95054
David W Dorman director CVS HEALTH., ONE CVS DRIVE, WOONSOCKET RI 02895
Jeffrey William Karbowski officer: VP, Chief Accounting Officer 121 ALBRIGHT WAY, LOS GATOS CA 95032
John J Donahoe director C/O PAYPAL HOLDINGS INC, 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Adele Louise Pentland officer: SVP, Gen. Counsel & Secretary C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
John D Rainey officer: CFO and EVP, Global Cust Oper C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131