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PayPal Holdings (UKEX:PYPL) Shiller PE Ratio : 26.69 (As of May. 16, 2024)


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What is PayPal Holdings Shiller PE Ratio?

As of today (2024-05-16), PayPal Holdings's current share price is ₴1100.00. PayPal Holdings's E10 for the quarter that ended in Mar. 2024 was ₴41.22. PayPal Holdings's Shiller PE Ratio for today is 26.69.

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

UKEX:PYPL' s Shiller PE Ratio Range Over the Past 10 Years
Min: 21.72   Med: 25.96   Max: 32.73
Current: 25.75

During the past years, PayPal Holdings's highest Shiller PE Ratio was 32.73. The lowest was 21.72. And the median was 25.96.

UKEX:PYPL's Shiller PE Ratio is ranked worse than
68.09% of 304 companies
in the Credit Services industry
Industry Median: 14.495 vs UKEX:PYPL: 25.75

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 Mar. 2024 was ₴32.657. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is ₴41.22 for the trailing ten years ended in Mar. 2024.

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
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 26.71

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
=1100.00/41.22
=26.69

* 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 Mar. 2024 is calculated as:

For example, PayPal Holdings's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=32.657/129.4194*129.4194
=32.657

Current CPI (Mar. 2024) = 129.4194.

PayPal Holdings Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 9.306 100.560 11.977
201409 7.750 100.428 9.987
201412 9.472 99.070 12.374
201503 8.224 99.621 10.684
201506 9.836 100.684 12.643
201509 9.836 100.392 12.680
201512 11.804 99.792 15.308
201603 11.804 100.470 15.205
201606 10.623 101.688 13.520
201609 10.623 101.861 13.497
201612 12.590 101.863 15.996
201703 12.590 102.862 15.841
201706 13.377 103.349 16.751
201709 12.197 104.136 15.158
201712 19.673 104.011 24.479
201803 16.525 105.290 20.312
201806 17.312 106.317 21.074
201809 14.164 106.507 17.211
201812 19.279 105.998 23.539
201903 22.033 107.251 26.587
201906 27.148 108.070 32.511
201909 15.345 108.329 18.332
201912 16.918 108.420 20.195
202003 2.754 108.902 3.273
202006 50.755 108.767 60.392
202009 33.837 109.815 39.878
202012 51.936 109.897 61.162
202103 36.198 111.754 41.920
202106 39.345 114.631 44.421
202109 36.198 115.734 40.478
202112 26.755 117.630 29.437
202203 16.918 121.301 18.050
202206 -11.410 125.017 -11.812
202209 45.247 125.227 46.762
202212 31.476 125.222 32.531
202303 27.542 127.348 27.990
202306 36.198 128.729 36.392
202309 36.591 129.860 36.467
202312 50.755 129.419 50.755
202403 32.657 129.419 32.657

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  (UKEX: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 (UKEX: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.