PayPal HoldingsCHIX:2PPD 77 EV-to-FCF is 7.31 as of Jun. 27, 2026, which is 65% below its 10-year median of 20.75. GuruFocus rates CHIX:2PPD with a GF Score™ of 77/100 and a GF Value™ of €71.54 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 265 Credit Services companies, PayPal Holdings ranks better than 65.66% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, PayPal Holdings's Enterprise Value is €34,447 Mil.
PayPal Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was €4,715 Mil. Therefore, PayPal Holdings's EV-to-FCF for today is 7.31.
The historical rank and industry rank for PayPal Holdings's EV-to-FCF or its related term are showing as below:
CHIX:2PPd'
s EV-to-FCF Range Over the Past 10 Years
Min: -590.25 Med: 20.75 Max: 136.94
Current: 7.11
During the past 13 years, the highest EV-to-FCF of PayPal Holdings was 136.94. The lowest was -590.25. And the median was 20.75.
CHIX:2PPd's EV-to-FCF is ranked better than 65.66% of 265
companies
in the Credit Services industry
Industry Median: 12.99
vs CHIX:2PPd: 7.11
EV-to-FCF 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-FCF 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
PayPal Holdings EV-to-FCF Related Terms
PayPal Holdings EV-to-FCF Historical Data
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The historical data trend for PayPal Holdings's EV-to-FCF 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 AFRM, SYF, SOFI: EV-to-FCF Comparison
For the Credit Services subindustry, PayPal Holdings's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's EV-to-FCF falls into.
PayPal Holdings's current Enterprise Value is €34,447 Mil.
PayPal Holdings's Free Cash Flow 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 €4,715 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-FCF of 7.31 as of Jun. 27, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on PayPal Holdings and its competitors. This is 65% below median its historical median of 20.75. According to the industry distribution chart, PayPal Holdings ranks #91 out of 265 companies in the Credit Services industry, placing it in the top 34.3%.
Is PayPal Holdings' EV-to-FCF too high?
PayPal Holdings' current EV-to-FCF of 7.31 is 65% below median its 10-year median of 20.75. The Credit Services industry median EV-to-FCF is 12.99. PayPal Holdings' value of 7.31 is 43.7% below this industry median. Based on the distribution chart, PayPal Holdings ranks #91 out of 265 companies in the Credit Services industry, which is above the industry midpoint. 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' EV-to-FCF compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #91 out of 265 companies for EV-to-FCF. This puts PayPal Holdings in the upper half of its industry. The industry median EV-to-FCF is 12.99. PayPal Holdings' value of 7.31 is 43.7% below this benchmark. While the company's 10-year median is 20.75 vs. the industry median of 12.99, 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 EV-to-FCF for a Credit Services company?
The median EV-to-FCF among Credit Services companies is 12.99, based on 265 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current EV-to-FCF of 7.31 is 43.7% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median EV-to-FCF is 12.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current EV-to-FCF is 7.31, which is 65% below median its own 10-year median of 20.75. 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 (CHIX:2PPD) is currently considered Significantly Undervalued. The stock's GF Value™ is €71.54, compared to a current price of €38.20 — trading 46.6% below its estimated fair value. The current EV-to-FCF is 7.31, which is 65% below median its 10-year median of 20.75 and 43.7% below the Credit Services industry median of 12.99. 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 EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current EV-to-FCF is 7.31 as of Jun. 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 46.6% below its estimated GF Value™ of €71.54.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for CHIX:2PPD:
EV-to-FCF: 7.31 (65% below median its 10-year median of 20.75)
GF Value™: €71.54 vs. price of €38.20 (46.6% below fair value)
Industry Position: 43.7% below the Credit Services median (#91 of 265)
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.
77GF Score
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