PayPal HoldingsCHIX:2PPD 77 PEG Ratio is 0.87 as of Jun. 28, 2026, which is 47% below its 10-year median of 1.65. 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 234 Credit Services companies, PayPal Holdings ranks worse than 50.43% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for PayPal Holdings's PEG Ratio or its related term are showing as below:
CHIX:2PPd'
s PEG Ratio Range Over the Past 10 Years
Min: 0.67 Med: 1.65 Max: 6.01
Current: 0.87
During the past 13 years, PayPal Holdings's highest PEG Ratio was 6.01. The lowest was 0.67. And the median was 1.65.
CHIX:2PPd's PEG Ratio is ranked worse than 50.43% of 234
companies
in the Credit Services industry
Industry Median: 0.865
vs CHIX:2PPd: 0.87
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
PayPal Holdings (CHIX:2PPd) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
PayPal Holdings PEG Ratio Related Terms
PayPal Holdings PEG Ratio Historical Data
* Premium members only.
The historical data trend for PayPal Holdings's PEG 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.
CHIX:2PPD vs AFRM, SYF, SOFI: PEG Ratio Comparison
For the Credit Services subindustry, PayPal Holdings's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's PEG Ratio distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
PayPal Holdings (CHIX:2PPD) has a PEG Ratio of 0.87 as of Jun. 28, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on PayPal Holdings and its competitors. This is 47% below median its historical median of 1.65. Over the past decade, PayPal Holdings' PEG Ratio has ranged from 0.67 to 6.01. According to the industry distribution chart, PayPal Holdings ranks #118 out of 234 companies in the Credit Services industry, placing it in the top 50.4%.
Is PayPal Holdings' PEG Ratio too high?
PayPal Holdings' current PEG Ratio of 0.87 is 47% below median its 10-year median of 1.65. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 6.01. The Credit Services industry median PEG Ratio is 0.87. PayPal Holdings' value of 0.87 is 0.6% above this industry median. Based on the distribution chart, PayPal Holdings ranks #118 out of 234 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' PEG Ratio compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #118 out of 234 companies for PEG Ratio. This places PayPal Holdings in the lower half of its industry. The industry median PEG Ratio is 0.87. PayPal Holdings' value of 0.87 is 0.6% above this benchmark. Historically, PayPal Holdings' own PEG Ratio has ranged from 0.67 to 6.01 over the past decade. While the company's 10-year median is 1.65 vs. the industry median of 0.87, 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 PEG Ratio for a Credit Services company?
The median PEG Ratio among Credit Services companies is 0.87, based on 234 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current PEG Ratio of 0.87 is 0.6% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median PEG Ratio is 0.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current PEG Ratio is 0.87, which is 47% below median its own 10-year median of 1.65. 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 PEG Ratio is 0.87, which is 47% below median its 10-year median of 1.65 and 0.6% above the Credit Services industry median of 0.87. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current PEG Ratio is 0.87 as of Jun. 28, 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:
PEG Ratio: 0.87 (47% below median its 10-year median of 1.65)
GF Value™: €71.54 vs. price of €38.20 (46.6% below fair value)
Industry Position: 0.6% above the Credit Services median (#118 of 234)
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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