PayPal HoldingsNEOE:ZPYP 65 ROC (Joel Greenblatt) % is 352.09% as of Mar. 2026, which is 62% above its 10-year median of 217.40. GuruFocus rates NEOE:ZPYP with a GF Score™ of 65/100 and a GF Value™ of C$11.34 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 413 Credit Services companies, PayPal Holdings ranks better than 77% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. PayPal Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 352.09%.
The historical rank and industry rank for PayPal Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
NEOE:ZPYP'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 115.64 Med: 217.4 Max: 419.76
Current: 396.97
During the past 13 years, PayPal Holdings's highest ROC (Joel Greenblatt) % was 419.76%. The lowest was 115.64%. And the median was 217.40%.
NEOE:ZPYP's ROC (Joel Greenblatt) % is ranked better than 77% of 413
companies
in the Credit Services industry
Industry Median: 38.19
vs NEOE:ZPYP: 396.97
PayPal Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 11.20% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
PayPal Holdings ROC (Joel Greenblatt) % Related Terms
PayPal Holdings ROC (Joel Greenblatt) % Historical Data
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The historical data trend for PayPal Holdings's ROC (Joel Greenblatt) % 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.
NEOE:ZPYP vs AFRM, SYF, SOFI: ROC (Joel Greenblatt) % Comparison
For the Credit Services subindustry, PayPal Holdings's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 352.09% mean?
PayPal Holdings (NEOE:ZPYP) has a ROC (Joel Greenblatt) % of 352.09% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on PayPal Holdings and its competitors. This is 62% above median its historical median of 217.40. Over the past decade, PayPal Holdings' ROC (Joel Greenblatt) % has ranged from 115.64 to 419.76. According to the industry distribution chart, PayPal Holdings ranks #95 out of 413 companies in the Credit Services industry, placing it in the top 23%.
Is PayPal Holdings' ROC (Joel Greenblatt) % too high?
PayPal Holdings' current ROC (Joel Greenblatt) % of 352.09% is 62% above median its 10-year median of 217.40. Over the past 10 years, this metric has ranged from a low of 115.64 to a high of 419.76. The Credit Services industry median ROC (Joel Greenblatt) % is 38.19. PayPal Holdings' value of 352.09% is 821.9% above this industry median. Based on the distribution chart, PayPal Holdings ranks #95 out of 413 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 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PayPal Holdings' ROC (Joel Greenblatt) % compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #95 out of 413 companies for ROC (Joel Greenblatt) %. This places PayPal Holdings in the top 23% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 38.19. PayPal Holdings' value of 352.09% is 821.9% above this benchmark. Historically, PayPal Holdings' own ROC (Joel Greenblatt) % has ranged from 115.64 to 419.76 over the past decade. While the company's 10-year median is 217.40 vs. the industry median of 38.19, 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 ROC (Joel Greenblatt) % for a Credit Services company?
The median ROC (Joel Greenblatt) % among Credit Services companies is 38.19, based on 413 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current ROC (Joel Greenblatt) % of 352.09% is 821.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median ROC (Joel Greenblatt) % is 38.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current ROC (Joel Greenblatt) % is 352.09%, which is 62% above median its own 10-year median of 217.40. 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 (NEOE:ZPYP) is currently considered Significantly Undervalued. The stock's GF Value™ is C$11.34, compared to a current price of C$6.21 — trading 45.2% below its estimated fair value. The current ROC (Joel Greenblatt) % is 352.09%, which is 62% above median its 10-year median of 217.40 and 821.9% above the Credit Services industry median of 38.19. PayPal Holdings' overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For PayPal Holdings (NEOE:ZPYP), the current ROC (Joel Greenblatt) % is 352.09% 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 (NEOE:ZPYP) Overvalued in 2026?
Based on GuruFocus' analysis, PayPal Holdings stock appears to be undervalued.
The current stock price of C$6.21 is trading 45.2% below its estimated GF Value™ of C$11.34.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for NEOE:ZPYP:
ROC (Joel Greenblatt) %: 352.09% (62% above median its 10-year median of 217.40)
GF Value™: C$11.34 vs. price of C$6.21 (45.2% below fair value)
Industry Position: 821.9% above the Credit Services median (#95 of 413)
No single metric tells the full story. See the NEOE:ZPYP 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.
65GF Score
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