PayPal HoldingsCHIX:2PPD 77 Interest Coverage is 14.07 as of Mar. 2026, which is 20% below its 10-year median of 17.52. GuruFocus rates CHIX:2PPD with a GF Score™ of 77/100 and a GF Value™ of €74.77 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 163 Credit Services companies, PayPal Holdings ranks worse than 61.35% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. PayPal Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was €1,351 Mil. PayPal Holdings's Interest Expense for the
three
months ended in Mar. 2026 was €-96 Mil.
PayPal Holdings's interest coverage for the quarter that ended in Mar. 2026 was 14.07.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for PayPal Holdings's Interest Coverage or its related term are showing as below:
CHIX:2PPd'
s Interest Coverage Range Over the Past 10 Years
Min: 13.3 Med: 17.52 Max: 528.67
Current: 14.17
CHIX:2PPd's Interest Coverage is ranked worse than 61.35% of 163
companies
in the Credit Services industry
Industry Median: 47.86
vs CHIX:2PPd: 14.17
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
PayPal Holdings Interest Coverage Related Terms
PayPal Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for PayPal Holdings's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
CHIX:2PPD vs AFRM, SYF, SOFI: Interest Coverage Comparison
For the Credit Services subindustry, PayPal Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 14.07 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PayPal Holdings and its competitors. This is 20% below median its historical median of 17.52. Over the past decade, PayPal Holdings' Interest Coverage has ranged from 13.30 to 528.67. According to the industry distribution chart, PayPal Holdings ranks #100 out of 163 companies in the Credit Services industry, placing it in the top 61.3%.
Is PayPal Holdings' Interest Coverage too high?
PayPal Holdings' current Interest Coverage of 14.07 is 20% below median its 10-year median of 17.52. Over the past 10 years, this metric has ranged from a low of 13.30 to a high of 528.67. The Credit Services industry median Interest Coverage is 47.86. PayPal Holdings' value of 14.07 is 70.6% below this industry median. Based on the distribution chart, PayPal Holdings ranks #100 out of 163 companies in the Credit Services industry, which is below 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' Interest Coverage compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #100 out of 163 companies for Interest Coverage. This places PayPal Holdings in the lower half of its industry. The industry median Interest Coverage is 47.86. PayPal Holdings' value of 14.07 is 70.6% below this benchmark. Historically, PayPal Holdings' own Interest Coverage has ranged from 13.30 to 528.67 over the past decade. While the company's 10-year median is 17.52 vs. the industry median of 47.86, 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 Interest Coverage for a Credit Services company?
The median Interest Coverage among Credit Services companies is 47.86, based on 163 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current Interest Coverage of 14.07 is 70.6% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median Interest Coverage is 47.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current Interest Coverage is 14.07, which is 20% below median its own 10-year median of 17.52. 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 €74.77, compared to a current price of €38.20 — trading 48.9% below its estimated fair value. The current Interest Coverage is 14.07, which is 20% below median its 10-year median of 17.52 and 70.6% below the Credit Services industry median of 47.86. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current Interest Coverage is 14.07 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 (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 48.9% below its estimated GF Value™ of €74.77.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for CHIX:2PPD:
Interest Coverage: 14.07 (20% below median its 10-year median of 17.52)
GF Value™: €74.77 vs. price of €38.20 (48.9% below fair value)
Industry Position: 70.6% below the Credit Services median (#100 of 163)
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
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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