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PayPal HoldingsPYPL +2.18%87 Debt-to-EBITDA is 1.35 as of Mar. 2026, which is 2% below its 10-year median of 1.38. GuruFocus rates PYPL with a GF Score™ of 87/100 and a GF Value™ of $83.26 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 282 Credit Services companies, PayPal Holdings ranks better than 84.75% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for PayPal Holdings's Debt-to-EBITDA or its related term are showing as below:
PYPL'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.33 Med: 1.38 Max: 2.09
Current: 1.26
During the past 13 years, the highest Debt-to-EBITDA Ratio of PayPal Holdings was 2.09. The lowest was 0.33. And the median was 1.38.
PYPL's Debt-to-EBITDA is ranked better than 84.75% of 282
companies
in the Credit Services industry
Industry Median: 9.3
vs PYPL: 1.26
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
PayPal Holdings Debt-to-EBITDA Related Terms
PayPal Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for PayPal Holdings's Debt-to-EBITDA 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.
PYPL vs AFRM, SYF, SOFI: Debt-to-EBITDA Comparison
For the Credit Services subindustry, PayPal Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
PayPal Holdings (PYPL) has a Debt-to-EBITDA of 1.35 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on PayPal Holdings. This is near median its historical median of 1.38. Over the past decade, PayPal Holdings' Debt-to-EBITDA has ranged from 0.33 to 2.09. According to the industry distribution chart, PayPal Holdings ranks #43 out of 282 companies in the Credit Services industry, placing it in the top 15.2%.
Is PayPal Holdings' Debt-to-EBITDA too high?
PayPal Holdings' current Debt-to-EBITDA of 1.35 is near median its 10-year median of 1.38. Over the past 10 years, this metric has ranged from a low of 0.33 to a high of 2.09. The Credit Services industry median Debt-to-EBITDA is 9.30. PayPal Holdings' value of 1.35 is 85.5% below this industry median. Based on the distribution chart, PayPal Holdings ranks #43 out of 282 companies in the Credit Services industry, which is in the top quartile — a strong position 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' Debt-to-EBITDA compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #43 out of 282 companies for Debt-to-EBITDA. This places PayPal Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 9.30. PayPal Holdings' value of 1.35 is 85.5% below this benchmark. Historically, PayPal Holdings' own Debt-to-EBITDA has ranged from 0.33 to 2.09 over the past decade. While the company's 10-year median is 1.38 vs. the industry median of 9.30, PayPal Holdings has consistently been below 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 Debt-to-EBITDA for a Credit Services company?
The median Debt-to-EBITDA among Credit Services companies is 9.30, based on 282 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current Debt-to-EBITDA of 1.35 is 85.5% below 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on PayPal Holdings. For the Credit Services industry, the median Debt-to-EBITDA is 9.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current Debt-to-EBITDA is 1.35, which is near median its own 10-year median of 1.38. 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 $83.26, compared to a current price of $56.73 — trading 31.9% below its estimated fair value. The current Debt-to-EBITDA is 1.35, which is near median its 10-year median of 1.38 and 85.5% below the Credit Services industry median of 9.30. 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 Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For PayPal Holdings (PYPL), the current Debt-to-EBITDA is 1.35 as of Mar. 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 $56.73 is trading 31.9% below its estimated GF Value™ of $83.26.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for PYPL:
Debt-to-EBITDA: 1.35 (near median its 10-year median of 1.38)
GF Value™: $83.26 vs. price of $56.73 (31.9% below fair value)
Industry Position: 85.5% below the Credit Services median (#43 of 282)
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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