PayPal HoldingsCHIX:2PPD 77 Return-on-Tangible-Asset is 6.47% as of Mar. 2026, which is 7% above its 10-year median of 6.05. GuruFocus rates CHIX:2PPD with a GF Score™ of 77/100 and a GF Value™ of €71.33 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 544 Credit Services companies, PayPal Holdings ranks better than 88.24% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. PayPal Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was €3,851 Mil. PayPal Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was €59,519 Mil. Therefore, PayPal Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 6.47%.
The historical rank and industry rank for PayPal Holdings's Return-on-Tangible-Asset or its related term are showing as below:
CHIX:2PPd'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.73 Med: 6.05 Max: 8.04
Current: 7.32
During the past 13 years, PayPal Holdings's highest Return-on-Tangible-Asset was 8.04%. The lowest was 3.73%. And the median was 6.05%.
CHIX:2PPd's Return-on-Tangible-Asset is ranked better than 88.24% of 544
companies
in the Credit Services industry
Industry Median: 1.93
vs CHIX:2PPd: 7.32
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
PayPal Holdings Return-on-Tangible-Asset Related Terms
PayPal Holdings Return-on-Tangible-Asset Historical Data
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The historical data trend for PayPal Holdings's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Credit Services subindustry, PayPal Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 6.47% mean?
PayPal Holdings (CHIX:2PPD) has a Return-on-Tangible-Asset of 6.47% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on PayPal Holdings and its competitors. This is near median its historical median of 6.05. Over the past decade, PayPal Holdings' Return-on-Tangible-Asset has ranged from 3.73 to 8.04. According to the industry distribution chart, PayPal Holdings ranks #64 out of 544 companies in the Credit Services industry, placing it in the top 11.8%.
Is PayPal Holdings' Return-on-Tangible-Asset too high?
PayPal Holdings' current Return-on-Tangible-Asset of 6.47% is near median its 10-year median of 6.05. Over the past 10 years, this metric has ranged from a low of 3.73 to a high of 8.04. The Credit Services industry median Return-on-Tangible-Asset is 1.93. PayPal Holdings' value of 6.47% is 235.2% above this industry median. Based on the distribution chart, PayPal Holdings ranks #64 out of 544 companies in the Credit Services industry, which is in the top quartile — a strong position 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' Return-on-Tangible-Asset compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #64 out of 544 companies for Return-on-Tangible-Asset. This places PayPal Holdings in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.93. PayPal Holdings' value of 6.47% is 235.2% above this benchmark. Historically, PayPal Holdings' own Return-on-Tangible-Asset has ranged from 3.73 to 8.04 over the past decade. While the company's 10-year median is 6.05 vs. the industry median of 1.93, 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 Return-on-Tangible-Asset for a Credit Services company?
The median Return-on-Tangible-Asset among Credit Services companies is 1.93, based on 544 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current Return-on-Tangible-Asset of 6.47% is 235.2% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median Return-on-Tangible-Asset is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current Return-on-Tangible-Asset is 6.47%, which is near median its own 10-year median of 6.05. 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 €71.33, compared to a current price of €38.20 — trading 46.4% below its estimated fair value. The current Return-on-Tangible-Asset is 6.47%, which is near median its 10-year median of 6.05 and 235.2% above the Credit Services industry median of 1.93. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current Return-on-Tangible-Asset is 6.47% 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 46.4% below its estimated GF Value™ of €71.33.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for CHIX:2PPD:
Return-on-Tangible-Asset: 6.47% (near median its 10-year median of 6.05)
GF Value™: €71.33 vs. price of €38.20 (46.4% below fair value)
Industry Position: 235.2% above the Credit Services median (#64 of 544)
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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