PayPal HoldingsFRA:2PP0 -1.73%87 FCF Margin % is 10.81% as of Mar. 2026, which is 43% below its 10-year median of 19.11. GuruFocus rates FRA:2PP0 with a GF Score™ of 87/100 and a GF Value™ of €3.33 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 531 Credit Services companies, PayPal Holdings ranks better than 63.28% on this metric.
The historical rank and industry rank for PayPal Holdings's FCF Margin % or its related term are showing as below:
FRA:2PP0'
s FCF Margin % Range Over the Past 10 Years
Min: 14.17 Med: 19.11 Max: 30.14
Current: 16.26
During the past 13 years, the highest FCF Margin % of PayPal Holdings was 30.14%. The lowest was 14.17%. And the median was 19.11%.
FRA:2PP0's FCF Margin % is ranked better than 63.28% of 531
companies
in the Credit Services industry
Industry Median: 0.24
vs FRA:2PP0: 16.26
PayPal Holdings FCF Margin % Related Terms
PayPal Holdings FCF Margin % Historical Data
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The historical data trend for PayPal Holdings's FCF Margin % 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.
FRA:2PP0 vs AFRM, SYF, SOFI: FCF Margin % Comparison
For the Credit Services subindustry, PayPal Holdings's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's FCF Margin % distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's FCF Margin % falls into.
* 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 (FRA:2PP0) has a FCF Margin % of 10.81% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on PayPal Holdings and its competitors. This is 43% below median its historical median of 19.11. Over the past decade, PayPal Holdings' FCF Margin % has ranged from 14.17 to 30.14. According to the industry distribution chart, PayPal Holdings ranks #195 out of 531 companies in the Credit Services industry, placing it in the top 36.7%.
Is PayPal Holdings' FCF Margin % too high?
PayPal Holdings' current FCF Margin % of 10.81% is 43% below median its 10-year median of 19.11. Over the past 10 years, this metric has ranged from a low of 14.17 to a high of 30.14. The Credit Services industry median FCF Margin % is 0.24. PayPal Holdings' value of 10.81% is 4404.2% above this industry median. Based on the distribution chart, PayPal Holdings ranks #195 out of 531 companies in the Credit Services industry, which is above the industry midpoint. Overall, PayPal Holdings has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PayPal Holdings' FCF Margin % compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #195 out of 531 companies for FCF Margin %. This puts PayPal Holdings in the upper half of its industry. The industry median FCF Margin % is 0.24. PayPal Holdings' value of 10.81% is 4404.2% above this benchmark. Historically, PayPal Holdings' own FCF Margin % has ranged from 14.17 to 30.14 over the past decade. While the company's 10-year median is 19.11 vs. the industry median of 0.24, PayPal Holdings has consistently been above 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 FCF Margin % for a Credit Services company?
The median FCF Margin % among Credit Services companies is 0.24, based on 531 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current FCF Margin % of 10.81% is 4404.2% above 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median FCF Margin % is 0.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current FCF Margin % is 10.81%, which is 43% below median its own 10-year median of 19.11. 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 (FRA:2PP0) is currently considered Significantly Undervalued. The stock's GF Value™ is €3.33, compared to a current price of €1.70 — trading 48.9% below its estimated fair value. The current FCF Margin % is 10.81%, which is 43% below median its 10-year median of 19.11 and 4404.2% above the Credit Services industry median of 0.24. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For PayPal Holdings (FRA:2PP0), the current FCF Margin % is 10.81% 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 (FRA:2PP0) Overvalued in 2026?
Based on GuruFocus' analysis, PayPal Holdings stock appears to be undervalued.
The current stock price of €1.70 is trading 48.9% below its estimated GF Value™ of €3.33.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for FRA:2PP0:
FCF Margin %: 10.81% (43% below median its 10-year median of 19.11)
GF Value™: €3.33 vs. price of €1.70 (48.9% below fair value)
Industry Position: 4404.2% above the Credit Services median (#195 of 531)
No single metric tells the full story. See the FRA:2PP0 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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