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PayPal Holdings Earnings Yield (Joel Greenblatt) %

: 3.02% (As of Mar. 2022)
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PayPal Holdings's Enterprise Value for the quarter that ended in Mar. 2022 was $135,526 Mil. PayPal Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2022 was $4,089 Mil. PayPal Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2022 was 3.02%.

The historical rank and industry rank for PayPal Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

PYPL' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.47   Med: 2.51   Max: 4.42
Current: 4.42

During the past 10 years, the highest Earnings Yield (Joel Greenblatt) of PayPal Holdings was 4.42%. The lowest was 1.47%. And the median was 2.51%.

PYPL's Earnings Yield (Joel Greenblatt) % is ranked better than
66.41% of 393 companies
in the Credit Services industry
Industry Median: 2.17 vs PYPL: 4.42

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. PayPal Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2022 was 22.95%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


PayPal Holdings Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for PayPal Holdings's Earnings Yield (Joel Greenblatt) % 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
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.64 2.68 2.57 1.95 1.97

PayPal Holdings Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Earnings Yield (Joel Greenblatt) % 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 2.10 1.61 1.82 1.97 3.02

Competitive Comparison

For the Credit Services subindustry, PayPal Holdings's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % Distribution

For the Credit Services industry and Financial Services sector, PayPal Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Earnings Yield (Joel Greenblatt) % falls into.



PayPal Holdings Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

PayPal Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2021 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=4331/219809.44
=1.97 %

PayPal Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,089 Mil.



PayPal Holdings  (NAS:PYPL) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


PayPal Holdings Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Earnings Yield (Joel Greenblatt) % 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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