PayPal HoldingsCHIX:2PPD 77 Forward PE Ratio is 8.26 as of Jul. 09, 2026. GuruFocus rates CHIX:2PPD with a GF Score™ of 77/100 and a GF Value™ of €71.33 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 187 Credit Services companies, PayPal Holdings ranks better than 60.43% on this metric.
PayPal Holdings (CHIX:2PPd) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
PayPal Holdings Forward PE Ratio Related Terms
PayPal Holdings Forward PE Ratio Historical Data
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The historical data trend for PayPal Holdings's Forward PE Ratio 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 Forward PE Ratio Chart
PayPal Holdings Annual Data
Trend
2023-12
2024-12
2025-12
Forward PE Ratio
11.22
18.22
10.02
PayPal Holdings Quarterly Data
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
12.48
10.41
11.22
13.05
13.91
16.45
18.22
13.06
13.68
11.45
10.02
8.92
CHIX:2PPD vs AFRM, SYF, SOFI: Forward PE Ratio Comparison
For the Credit Services subindustry, PayPal Holdings's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
PayPal Holdings (CHIX:2PPD) has a Forward PE Ratio of 8.26 as of Jul. 09, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on PayPal Holdings and its competitors. According to the industry distribution chart, PayPal Holdings ranks #74 out of 187 companies in the Credit Services industry, placing it in the top 39.6%.
Is PayPal Holdings' Forward PE Ratio too high?
PayPal Holdings' current Forward PE Ratio is 8.26. The Credit Services industry median Forward PE Ratio is 9.81. PayPal Holdings' value of 8.26 is 15.8% below this industry median. Based on the distribution chart, PayPal Holdings ranks #74 out of 187 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' Forward PE Ratio compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #74 out of 187 companies for Forward PE Ratio. This puts PayPal Holdings in the upper half of its industry. The industry median Forward PE Ratio is 9.81. PayPal Holdings' value of 8.26 is 15.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Credit Services company?
The median Forward PE Ratio among Credit Services companies is 9.81, based on 187 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current Forward PE Ratio of 8.26 is 15.8% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median Forward PE Ratio is 9.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current Forward PE Ratio is 8.26. 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 €71.33, compared to a current price of €38.20 — trading 46.4% below its estimated fair value. The current Forward PE Ratio is 8.26 and 15.8% below the Credit Services industry median of 9.81. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current Forward PE Ratio is 8.26 as of Jul. 09, 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 46.4% below its estimated GF Value™ of €71.33.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for CHIX:2PPD:
Forward PE Ratio: 8.26
GF Value™: €71.33 vs. price of €38.20 (46.4% below fair value)
Industry Position: 15.8% below the Credit Services median (#74 of 187)
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
Get the complete analysis for CHIX:2PPD
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