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PayPal Holdings PS Ratio

: 4.50 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, PayPal Holdings's share price is $101.10. PayPal Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $22.47. Hence, PayPal Holdings's PS Ratio for today is 4.50.

The historical rank and industry rank for PayPal Holdings's PS Ratio or its related term are showing as below:

PYPL' s PS Ratio Range Over the Past 10 Years
Min: 3.18   Med: 20.61   Max: 79.71
Current: 4.44

During the past 10 years, PayPal Holdings's highest PS Ratio was 79.71. The lowest was 3.18. And the median was 20.61.

PYPL's PS Ratio is ranked worse than
58.39% of 548 companies
in the Credit Services industry
Industry Median: 3.24 vs PYPL: 4.44

PayPal Holdings's Revenue per Sharefor the three months ended in Jun. 2022 was $5.88. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $22.47.

Warning Sign:

PayPal Holdings Inc revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of PayPal Holdings was 12.00% per year. During the past 3 years, the average Revenue per Share Growth Rate was 18.50% per year. During the past 5 years, the average Revenue per Share Growth Rate was 101.50% per year.

During the past 10 years, PayPal Holdings's highest 3-Year average Revenue per Share Growth Rate was 157.50% per year. The lowest was 16.30% per year. And the median was 18.50% per year.

Back to Basics: PS Ratio


PayPal Holdings PS Ratio Historical Data

The historical data trend for PayPal Holdings's PS 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 68.68 6.55 7.23 12.96 8.82

PayPal Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PS Ratio 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 14.53 12.58 8.82 5.29 3.11

Competitive Comparison

For the Credit Services subindustry, PayPal Holdings's PS Ratio, along with its competitors' market caps and PS 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 PS Ratio Distribution

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

* The bar in red indicates where PayPal Holdings's PS Ratio falls into.



PayPal Holdings PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

PayPal Holdings's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=101.10/22.465
=4.50

PayPal Holdings's Share Price of today is $101.10.
PayPal Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $22.47.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


PayPal Holdings  (NAS:PYPL) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


PayPal Holdings PS Ratio Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


PayPal Holdings Business Description

PayPal Holdings logo
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 426 million active accounts at the end of 2021, including 34 million merchant accounts. The company also owns Xoom, an international money transfer business, and Venmo, a person-to-person payment platform.
Executives
Scheibe Gabrielle officer: SVP, Corp Finance & Investor R 2211 NORTH FIRST STREET SAN JOSE CA 95131
Lores Enrique director 3000 HANOVER STREET PALO ALTO CA 94304
Karbowski Jeffrey William officer: VP, Chief Accounting Officer 2211 N 1ST ST SAN JOSE CA 95131
Alford Peggy officer: EVP, Global Sales 435 TASSO STREET PALO ALTO CA 94301
Rainey John D officer: CFO and EVP, Global Cust Oper C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Johnson Allison officer: EVP, Chief Marketing Officer C/O PAYPAL HOLDINGS INC 2211 NORTH FIRST STREET SAN JOSE CA 95131
Britto Mark officer: EVP, Global Sales and Credit C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Messemer Deborah M. director C/O ALLOGENE THERAPEUTICS, INC. 210 EAST GRAND AVENUE SOUTH SAN FRANCISCO CA 94080
Adkins Rodney C director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Sarnoff Ann director C/O HSN, INC. 1 HSN DRIVE SAINT PETERSBURG FL 33729
Karczmer Aaron officer: SVP, CR & Compliance Officer PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Johnson Belinda J. director 394 PACIFIC AVENUE, FLOOR 2 SAN FRANCISCO CA 94111
Shivananda Sripada officer: SVP, Chief Technology Officer 2211 NORTH FIRST STREET 2211 NORTH FIRST STREET SAN JOSE CA 95131
Casares Wences director C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Morales-jaffe Marcia officer: SVP, Human Resources C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131

PayPal Holdings Headlines

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