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PayPal Holdings (WBO:PYPL) Price-to-Free-Cash-Flow

: 16.51 (As of Today)
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As of today (2024-04-19), PayPal Holdings's share price is €58.85. PayPal Holdings's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2023 was €3.57. Hence, PayPal Holdings's Price-to-Free-Cash-Flow Ratio for today is 16.51.

The historical rank and industry rank for PayPal Holdings's Price-to-Free-Cash-Flow or its related term are showing as below:

WBO:PYPL' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 13.61   Med: 24.84   Max: 141.24
Current: 16.13

During the past 12 years, PayPal Holdings's highest Price-to-Free-Cash-Flow Ratio was 141.24. The lowest was 13.61. And the median was 24.84.

WBO:PYPL's Price-to-Free-Cash-Flow is ranked worse than
64.85% of 239 companies
in the Credit Services industry
Industry Median: 6.62 vs WBO:PYPL: 16.13

PayPal Holdings's Free Cash Flow per Share for the three months ended in Dec. 2023 was €2.09. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in was €3.57.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of PayPal Holdings was -13.60% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -5.50% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 3.40% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 14.60% per year.

During the past 12 years, PayPal Holdings's highest 3-Year average Free Cash Flow per Share Growth Rate was 43.50% per year. The lowest was -5.50% per year. And the median was 14.90% per year.


PayPal Holdings Price-to-Free-Cash-Flow Historical Data

The historical data trend for PayPal Holdings's Price-to-Free-Cash-Flow 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 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Price-to-Free-Cash-Flow
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.17 51.93 45.75 16.15 16.11

PayPal Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Price-to-Free-Cash-Flow Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.15 17.17 20.97 20.69 16.11

Competitive Comparison

For the Credit Services subindustry, PayPal Holdings's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow Distribution

For the Credit Services industry and Financial Services sector, PayPal Holdings's Price-to-Free-Cash-Flow distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Price-to-Free-Cash-Flow falls into.



PayPal Holdings Price-to-Free-Cash-Flow Calculation

PayPal Holdings's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/ Free Cash Flow per Share (TTM)
=58.85/3.565
=16.51

PayPal Holdings's Share Price of today is €58.85.
PayPal Holdings's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was €3.57.

* 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.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

PayPal Holdings  (WBO:PYPL) Price-to-Free-Cash-Flow Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management's decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


PayPal Holdings Price-to-Free-Cash-Flow Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Price-to-Free-Cash-Flow provided by GuruFocus.com. Please click on the following links to see related term pages.


PayPal Holdings (WBO:PYPL) 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 435 million active accounts at the end of 2022. The company also owns Venmo, a person-to-person payment platform.