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PayPal Holdings (BUE:PYPL) Shiller PE Ratio : 31.90 (As of Apr. 30, 2024)


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What is PayPal Holdings Shiller PE Ratio?

As of today (2024-04-30), PayPal Holdings's current share price is ARS9254.00. PayPal Holdings's E10 for the quarter that ended in Dec. 2023 was ARS290.11. PayPal Holdings's Shiller PE Ratio for today is 31.90.

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

BUE:PYPL' s Shiller PE Ratio Range Over the Past 10 Years
Min: 21.72   Med: 26.29   Max: 32.73
Current: 28.12

During the past years, PayPal Holdings's highest Shiller PE Ratio was 32.73. The lowest was 21.72. And the median was 26.29.

BUE:PYPL's Shiller PE Ratio is ranked worse than
71% of 300 companies
in the Credit Services industry
Industry Median: 14.78 vs BUE:PYPL: 28.12

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

PayPal Holdings's adjusted earnings per share data for the three months ended in Dec. 2023 was ARS465.690. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is ARS290.11 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


PayPal Holdings Shiller PE Ratio Historical Data

The historical data trend for PayPal Holdings's Shiller PE 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 Shiller PE Ratio Chart

PayPal Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 25.78

PayPal Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Shiller PE Ratio Get a 7-Day Free Trial 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 - - 29.50 25.21 25.78

Competitive Comparison of PayPal Holdings's Shiller PE Ratio

For the Credit Services subindustry, PayPal Holdings's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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's Shiller PE Ratio Distribution in the Credit Services Industry

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

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



PayPal Holdings Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

PayPal Holdings's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=9254.00/290.11
=31.90

* 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's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, PayPal Holdings's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=465.69/129.4194*129.4194
=465.690

Current CPI (Dec. 2023) = 129.4194.

PayPal Holdings Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 -2.587 99.695 -3.358
201406 1.922 100.560 2.474
201409 1.658 100.428 2.137
201412 2.059 99.070 2.690
201503 1.843 99.621 2.394
201506 2.272 100.684 2.920
201509 2.351 100.392 3.031
201512 3.883 99.792 5.036
201603 4.381 100.470 5.643
201606 3.775 101.688 4.804
201609 4.028 101.861 5.118
201612 5.073 101.863 6.445
201703 4.933 102.862 6.207
201706 5.606 103.349 7.020
201709 5.432 104.136 6.751
201712 9.547 104.011 11.879
201803 8.463 105.290 10.403
201806 10.974 106.317 13.359
201809 13.248 106.507 16.098
201812 18.475 105.998 22.557
201903 21.890 107.251 26.415
201906 30.829 108.070 36.919
201909 21.811 108.329 26.057
201912 25.703 108.420 30.681
202003 4.345 108.902 5.164
202006 88.313 108.767 105.081
202009 63.846 109.815 75.244
202012 107.422 109.897 126.505
202103 82.874 111.754 95.974
202106 94.730 114.631 106.951
202109 89.958 115.734 100.595
202112 68.673 117.630 75.556
202203 46.170 121.301 49.260
202206 -34.896 125.017 -36.125
202209 159.792 125.227 165.142
202212 134.120 125.222 138.616
202303 138.285 127.348 140.535
202306 220.800 128.729 221.985
202309 325.454 129.860 324.351
202312 465.690 129.419 465.690

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


PayPal Holdings  (BUE:PYPL) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


PayPal Holdings Shiller PE Ratio Related Terms

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


PayPal Holdings (BUE: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.