PayPal Holdings (MEX:PYPL) EBIT: MXN119,546 Mil (TTM As of Mar. 2026)


MEX:PYPL PayPal Holdings Inc MEX:PYPL
77 GF Score
Price MXN750.50
GF Value MXN1,465.31
Valuation Significantly Undervalued
! 4 Warning Signs
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What is PayPal Holdings EBIT?

PayPal Holdings MEX:PYPL +2.37% 77 EBIT is MXN119,546 Mil as of Mar. 2026. GuruFocus rates MEX:PYPL with a GF Score™ of 77/100 and a GF Value™ of MXN1,465.31 (Significantly Undervalued). The stock has 4 warning signs investors should review.

PayPal Holdings's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was MXN27,121 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was MXN119,546 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. PayPal Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was 21.32%. PayPal Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 353.32%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. PayPal Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 18.13%.

PayPal Holdings  (MEX:PYPL) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

PayPal Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=112668.308 * ( 1 - 20.1% )/( (419676.855 + 424976.64)/ 2 )
=90021.978092/422326.7475
=21.32 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1443570.987 - 836238.726 - ( 187655.406 - max(0, 836238.726 - 1076002.627+187655.406))
=419676.855

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1452461.855 - 859023.731 - ( 168461.484 - max(0, 859023.731 - 1081871.837+168461.484))
=424976.64

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

PayPal Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=108484.724/( ( (30609.69 + max(-100435.795, 0)) + (30799.852 + max(-99432.31, 0)) )/ 2 )
=108484.724/( ( 30609.69 + 30799.852 )/ 2 )
=108484.724/30704.771
=353.32 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(702906.517 + 0 + 32896.414) - (836238.726 + 0 + 0)
=-100435.795

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(727511.249 + 0 + 32080.172) - (859023.731 + 0 + 0)
=-99432.31

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

PayPal Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=119546.017/659200.823
=18.13 %

* 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 EBIT Related Terms

PayPal Holdings EBIT Historical Data

* Premium members only.

The historical data trend for PayPal Holdings's EBIT 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.

PayPal Holdings EBIT Chart

PayPal Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 88,846.13 71,550.32 97,737.72 119,106.90 121,232.38

PayPal Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT 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 34,901.69 30,936.38 30,194.55 31,293.91 27,121.18

MEX:PYPL vs AFRM, SYF, SOFI: EBIT Comparison

For the Credit Services subindustry, PayPal Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Credit Services Industry

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

* The bar in red indicates where PayPal Holdings's EV-to-EBIT falls into.


MEX:PYPL
77GF Score
PayPal Holdings Inc MEX:PYPL
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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PayPal Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN119,546 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of MXN119,546 Mil mean?
PayPal Holdings (MEX:PYPL) has a EBIT of MXN119,546 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on PayPal Holdings.
Is PayPal Holdings' EBIT too high?
PayPal Holdings' current EBIT is MXN119,546 Mil. Overall, PayPal Holdings has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PayPal Holdings' EBIT compare to AFRM and SYF?
PayPal Holdings' EBIT of MXN119,546 Mil can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Credit Services company?
A good EBIT depends on the Credit Services industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on PayPal Holdings. PayPal Holdings's current EBIT is MXN119,546 Mil. 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 (MEX:PYPL) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,465.31, compared to a current price of MXN750.50 — trading 48.8% below its estimated fair value. The current EBIT is MXN119,546 Mil. PayPal Holdings' overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For PayPal Holdings (MEX:PYPL), the current EBIT is MXN119,546 Mil 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 (MEX:PYPL) Overvalued in 2026?

Based on GuruFocus' analysis, PayPal Holdings stock appears to be undervalued. The current stock price of MXN750.50 is trading 48.8% below its estimated GF Value™ of MXN1,465.31. GuruFocus considers PayPal Holdings to be Significantly Undervalued.

Key valuation signals for MEX:PYPL:

  • EBIT: MXN119,546 Mil
  • GF Value™: MXN1,465.31 vs. price of MXN750.50 (48.8% below fair value)
  • GF Score™: 77/100 with 4 warning signs

No single metric tells the full story. See the MEX:PYPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

PayPal Holdings 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 439 million active accounts at the end of 2025. The company also owns Venmo, a person-to-person payment platform.
77GF Score

Get the complete analysis for MEX:PYPL

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN750.50
Price
MXN1,465.31
GF Value