PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, PayPal Holdings's PE Ratio without NRI is 17.21. PayPal Holdings's 5-Year EBITDA growth rate is 15.20%. Therefore, PayPal Holdings's PEG Ratio for today is 1.13.
* 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:
PYPL'
s PEG Ratio Range Over the Past 10 Years
Min: 1.07 Med: 2.28 Max: 6.26
Current: 1.13
During the past 11 years, PayPal Holdings's highest PEG Ratio was 6.26. The lowest was 1.07. And the median was 2.28.
PYPL's PEG Ratio is ranked worse than 52.55% of 196
companies
in the Credit Services industry
Industry Median: 1.07
vs PYPL: 1.13
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
PayPal Holdings PEG Ratio Historical Data
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.
* Premium members only.
PayPal Holdings Annual Data
Trend
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
PEG Ratio
-
3.00
4.62
2.12
1.97
PayPal Holdings Quarterly Data
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
PEG Ratio
2.10
1.97
2.00
1.45
1.28
Competitive 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 Distribution
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.
PayPal Holdings PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
PayPal Holdings's PEG Ratio for today is calculated as
* 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 (NAS:PYPL) 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
Thank you for viewing the detailed overview of PayPal Holdings's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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 435 million active accounts at the end of 2022. The company also owns Venmo, a person-to-person payment platform.
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