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PayPal Holdings E10

: $1.77 (As of Mar. 2022)
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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

PayPal Holdings's adjusted earnings per share data for the fiscal year that ended in Dec. 2021 was $3.520. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.77 for the trailing ten years ended in Dec. 2021.

As of today (2022-05-16), PayPal Holdings's current stock price is $ 78.83. PayPal Holdings's E10 for the fiscal year that ended in Dec. 2021 was $. PayPal Holdings's Shiller PE Ratio of today is 44.54.

During the past 10 years, the highest Shiller PE Ratio of PayPal Holdings was 108.48. The lowest was 44.48. And the median was 100.80.


PayPal Holdings E10 Historical Data

The historical data trend for PayPal Holdings's E10 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - 1.77

PayPal Holdings Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
E10 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 - - - 1.77 -

Competitive Comparison

For the Credit Services subindustry, PayPal Holdings's E10, along with its competitors' market caps and E10 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 E10 Distribution

For the Credit Services industry and Financial Services sector, PayPal Holdings's E10 distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's E10 falls into.



PayPal Holdings E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

For example, PayPal Holdings's adjusted earnings per share data for the fiscal year that ended in Dec. 2021 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Dec. 2021 (Change)*Current CPI (Dec. 2021)
=3.52/117.6295*117.6295
=3.520

Current CPI (Dec. 2021) = 117.6295.

PayPal Holdings Annual Data

per_share_eps CPI Adj_EPS
201212 0.633 96.871 0.769
201312 0.777 98.326 0.930
201412 0.340 99.070 0.404
201512 1.000 99.792 1.179
201612 1.150 101.863 1.328
201712 1.470 104.011 1.662
201812 1.710 105.998 1.898
201912 2.070 108.420 2.246
202012 3.540 109.897 3.789
202112 3.520 117.630 3.520

Add all the adjusted EPS together and divide 10 will get our e10.


PayPal Holdings  (NAS:PYPL) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

PayPal Holdings's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=78.83/1.77
=44.54

* 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.

During the past 10 years, the highest Shiller P/E Ratio of PayPal Holdings was 108.48. The lowest was 44.48. And the median was 100.80.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


PayPal Holdings E10 Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


PayPal Holdings Business Description

PayPal Holdings logo
Industry
Financial Services » Credit Services NAICS : 522390 SIC : 7389
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 426 million active accounts at the end of 2021, including 34 million merchant accounts. The company also owns Xoom, an international money transfer business, and Venmo, a person-to-person payment platform.
Executives
Karbowski Jeffrey William officer: VP, Chief Accounting Officer 2211 N 1ST ST SAN JOSE CA 95131
Schulman Daniel H director, officer: President and CEO C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Moffett David M director C/O PAYPAL HOLDINGS INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Yeary Frank D director C/O INTEL CORPORATION 2200 MISSION COLLEGE BLVD., RN4-151 SANTA CLARA CA 95054
Auerbach Jonathan officer: EVP, Chief Strategy & Growth O C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Britto Mark officer: EVP, Chief Product Officer C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Alford Peggy officer: EVP, Global Sales 435 TASSO STREET PALO ALTO CA 94301
Anderson Aaron officer: VP, Chief Accounting Officer C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Messemer Deborah M. director C/O ALLOGENE THERAPEUTICS, INC. 210 EAST GRAND AVENUE SOUTH SAN FRANCISCO CA 94080
Adkins Rodney C director IBM CORPORATION 294 ROUTE 100 SOMERS NY 10589
Sarnoff Ann director C/O HSN, INC. 1 HSN DRIVE SAINT PETERSBURG FL 33729
Donahoe John J director C/O PAYPAL HOLDINGS INC 2211 NORTH FIRST STREET SAN JOSE CA 95131
Dorman David W director CVS HEALTH. ONE CVS DRIVE WOONSOCKET RI 02895
Christodoro Jonathan director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Mcgovern Gail J director ONE ENERGY PLAZA., 688WCB DETROIT MI 48226

PayPal Holdings Headlines

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