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PayPal HoldingsCHIX:2PPD 87 EV-to-OCF is 7.96 as of Jul. 27, 2026, which is 56% below its 10-year median of 18.06. GuruFocus rates CHIX:2PPD with a GF Score™ of 87/100 and a GF Value™ of €56.73. The stock has 4 warning signs investors should review. Among 543 Credit Services companies, PayPal Holdings ranks worse than 68.69% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, PayPal Holdings's Enterprise Value is €43,597 Mil.
PayPal Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was €5,477 Mil. Therefore, PayPal Holdings's EV-to-OCF for today is 7.96.
The historical rank and industry rank for PayPal Holdings's EV-to-OCF or its related term are showing as below:
CHIX:2PPd'
s EV-to-OCF Range Over the Past 10 Years
Min: 5.82 Med: 18.06 Max: 200.77
Current: 7.76
During the past 13 years, the highest EV-to-OCF of PayPal Holdings was 200.77. The lowest was 5.82. And the median was 18.06.
CHIX:2PPd's EV-to-OCF is ranked worse than 68.69% of 543
companies
in the Credit Services industry
Industry Median: -0.49
vs CHIX:2PPd: 7.76
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
PayPal Holdings's PE Ratio (TTM) for today is calculated as:
PayPal Holdings's share price for today is €38.20.
PayPal Holdings's Earnings per Share (Diluted) 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 €4.580.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
PayPal Holdings EV-to-OCF Related Terms
PayPal Holdings EV-to-OCF Historical Data
* Premium members only.
The historical data trend for PayPal Holdings's EV-to-OCF 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.
CHIX:2PPD vs SYF, AFRM, SOFI: EV-to-OCF Comparison
For the Credit Services subindustry, PayPal Holdings's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's EV-to-OCF falls into.
PayPal Holdings's current Enterprise Value is €43,597 Mil.
PayPal Holdings's Cash Flow from Operations 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 €5,477 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.
PayPal Holdings (CHIX:2PPD) has a EV-to-OCF of 7.96 as of Jul. 27, 2026. This is 56% below median its historical median of 18.06. Over the past decade, PayPal Holdings' EV-to-OCF has ranged from 5.82 to 200.77. According to the industry distribution chart, PayPal Holdings ranks #373 out of 543 companies in the Credit Services industry, placing it in the top 68.7%.
Is PayPal Holdings' EV-to-OCF too high?
PayPal Holdings' current EV-to-OCF of 7.96 is 56% below median its 10-year median of 18.06. Over the past 10 years, this metric has ranged from a low of 5.82 to a high of 200.77. Based on the distribution chart, PayPal Holdings ranks #373 out of 543 companies in the Credit Services industry, which is below the industry midpoint. Overall, PayPal Holdings has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does PayPal Holdings' EV-to-OCF compare to SYF and AFRM?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #373 out of 543 companies for EV-to-OCF. This places PayPal Holdings in the lower half of its industry. Historically, PayPal Holdings' own EV-to-OCF has ranged from 5.82 to 200.77 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Credit Services company?
A good EV-to-OCF depends on the Credit Services industry context. However, EV-to-OCF 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. PayPal Holdings's current EV-to-OCF is 7.96, which is 56% below median its own 10-year median of 18.06. 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?
PayPal Holdings (CHIX:2PPD) has a current EV-to-OCF of 7.96. The stock's GF Value™ is €56.73, compared to a current price of €38.20 — trading 32.7% below its estimated fair value. The current EV-to-OCF is 7.96, which is 56% below median its 10-year median of 18.06. 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 EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current EV-to-OCF is 7.96 as of Jul. 27, 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 (CHIX:2PPD) Overvalued in 2026?
Based on GuruFocus' analysis, PayPal Holdings stock appears to be undervalued.
The current stock price of €38.20 is trading 32.7% below its estimated GF Value™ of €56.73.
Key valuation signals for CHIX:2PPD:
EV-to-OCF: 7.96 (56% below median its 10-year median of 18.06)
GF Value™: €56.73 vs. price of €38.20 (32.7% below fair value)
No single metric tells the full story. See the CHIX:2PPD 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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