PayPal Holdings (CHIX:2PPD) Moat Score: 8/10 (As of Jun. 29, 2026)


CHIX:2PPD PayPal Holdings Inc CHIX:2PPD
77 GF Score
Price €38.20
GF Value €71.54
Valuation Significantly Undervalued
! 4 Warning Signs
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What is PayPal Holdings Moat Score?

PayPal Holdings CHIX:2PPD 77 Moat Score is 8 as of Jun. 29, 2026. 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 566 Credit Services companies, PayPal Holdings ranks better than 99.29% on this metric.

PayPal Holdings has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

PayPal Holdings has Wide Moat: PayPal has a robust wide moat due to its strong brand, network effects, and significant customer switching costs in digital payments. The company benefits from economies of scale, strong market leadership, and consistent innovation, providing durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes PayPal Holdings might have Wide Moat - Clear and robust wide moat.

PayPal Holdings  (CHIX:2PPd) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

PayPal Holdings Moat Score Related Terms

CHIX:2PPD vs AFRM, SYF, SOFI: Moat Score Comparison

For the Credit Services subindustry, PayPal Holdings's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Credit Services Industry

For the Credit Services industry and Financial Services sector, PayPal Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Moat Score falls into.


CHIX:2PPD
77GF Score
PayPal Holdings Inc CHIX:2PPD
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 8 mean?
PayPal Holdings (CHIX:2PPD) has a Moat Score of 8 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, PayPal Holdings ranks #4 out of 566 companies in the Credit Services industry, placing it in the top 0.7%.
Is PayPal Holdings' Moat Score too high?
PayPal Holdings' current Moat Score is 8. Based on the distribution chart, PayPal Holdings ranks #4 out of 566 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. 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' Moat Score compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #4 out of 566 companies for Moat Score. This places PayPal Holdings in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Credit Services company?
A good Moat Score depends on the Credit Services industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. PayPal Holdings's current Moat Score is 8. 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 Moat Score is 8. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current Moat Score is 8 as of Jun. 29, 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:

  • Moat Score: 8
  • GF Value™: €71.54 vs. price of €38.20 (46.6% below fair value)
  • GF Score™: 77/100 with 4 warning signs

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 Holdings Business Description

Address 2211 North First Street, San Jose, CA, USA, 95131
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

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€38.20
Price
€71.54
GF Value