PayPal HoldingsCHIX:2PPD 77 Quick Ratio is 1.26 as of Mar. 2026, which is 3% below its 10-year median of 1.30. GuruFocus rates CHIX:2PPD with a GF Score™ of 77/100 and a GF Value™ of €74.77 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 394 Credit Services companies, PayPal Holdings ranks worse than 78.43% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. PayPal Holdings's quick ratio for the quarter that ended in Mar. 2026 was 1.26.
PayPal Holdings has a quick ratio of 1.26. It generally indicates good short-term financial strength.
The historical rank and industry rank for PayPal Holdings's Quick Ratio or its related term are showing as below:
CHIX:2PPd'
s Quick Ratio Range Over the Past 10 Years
Min: 1.19 Med: 1.3 Max: 1.55
Current: 1.26
During the past 13 years, PayPal Holdings's highest Quick Ratio was 1.55. The lowest was 1.19. And the median was 1.30.
CHIX:2PPd's Quick Ratio is ranked worse than 78.43% of 394
companies
in the Credit Services industry
Industry Median: 4.93
vs CHIX:2PPd: 1.26
PayPal Holdings (CHIX:2PPd) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
PayPal Holdings Quick Ratio Related Terms
PayPal Holdings Quick Ratio Historical Data
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The historical data trend for PayPal Holdings's Quick 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: Quick Ratio Comparison
For the Credit Services subindustry, PayPal Holdings's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
PayPal Holdings's Quick Ratio for the fiscal year that ended in Dec. 2025 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.
PayPal Holdings (CHIX:2PPD) has a Quick Ratio of 1.26 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on PayPal Holdings and its competitors. This is near median its historical median of 1.30. Over the past decade, PayPal Holdings' Quick Ratio has ranged from 1.19 to 1.55. According to the industry distribution chart, PayPal Holdings ranks #309 out of 394 companies in the Credit Services industry, placing it in the top 78.4%.
Is PayPal Holdings' Quick Ratio too high?
PayPal Holdings' current Quick Ratio of 1.26 is near median its 10-year median of 1.30. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 1.55. The Credit Services industry median Quick Ratio is 4.93. PayPal Holdings' value of 1.26 is 74.4% below this industry median. Based on the distribution chart, PayPal Holdings ranks #309 out of 394 companies in the Credit Services industry, which is in the bottom quartile 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' Quick Ratio compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #309 out of 394 companies for Quick Ratio. This places PayPal Holdings in the lower half of its industry. The industry median Quick Ratio is 4.93. PayPal Holdings' value of 1.26 is 74.4% below this benchmark. Historically, PayPal Holdings' own Quick Ratio has ranged from 1.19 to 1.55 over the past decade. While the company's 10-year median is 1.30 vs. the industry median of 4.93, PayPal Holdings has consistently been below 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 Quick Ratio for a Credit Services company?
The median Quick Ratio among Credit Services companies is 4.93, based on 394 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current Quick Ratio of 1.26 is 74.4% below 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median Quick Ratio is 4.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current Quick Ratio is 1.26, which is near median its own 10-year median of 1.30. 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 €74.77, compared to a current price of €38.20 — trading 48.9% below its estimated fair value. The current Quick Ratio is 1.26, which is near median its 10-year median of 1.30 and 74.4% below the Credit Services industry median of 4.93. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current Quick Ratio is 1.26 as of Mar. 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 48.9% below its estimated GF Value™ of €74.77.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for CHIX:2PPD:
Quick Ratio: 1.26 (near median its 10-year median of 1.30)
GF Value™: €74.77 vs. price of €38.20 (48.9% below fair value)
Industry Position: 74.4% below the Credit Services median (#309 of 394)
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
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