PayPal HoldingsCHIX:2PPD 77 5-Year Yield-on-Cost % is 0.95 as of Jul. 08, 2026, which is 73% above its 10-year median of 0.55. GuruFocus rates CHIX:2PPD with a GF Score™ of 77/100 and a GF Value™ of €69.57 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 210 Credit Services companies, PayPal Holdings ranks worse than 80.95% on this metric.
PayPal Holdings's yield on cost for the quarter that ended in Mar. 2026 was 0.95.
The historical rank and industry rank for PayPal Holdings's 5-Year Yield-on-Cost % or its related term are showing as below:
CHIX:2PPd'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.24 Med: 0.55 Max: 0.95
Current: 0.95
During the past 13 years, PayPal Holdings's highest Yield on Cost was 0.95. The lowest was 0.24. And the median was 0.55.
CHIX:2PPd's 5-Year Yield-on-Cost % is ranked worse than 80.95% of 210
companies
in the Credit Services industry
Industry Median: 4.56
vs CHIX:2PPd: 0.95
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
PayPal Holdings 5-Year Yield-on-Cost % Related Terms
CHIX:2PPD vs AFRM, SYF, SOFI: 5-Year Yield-on-Cost % Comparison
For the Credit Services subindustry, PayPal Holdings's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of PayPal Holdings is calculated as
PayPal Holdings (CHIX:2PPD) has a 5-Year Yield-on-Cost % of 0.95 as of Jul. 08, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on PayPal Holdings and its competitors. This is 73% above median its historical median of 0.55. Over the past decade, PayPal Holdings' 5-Year Yield-on-Cost % has ranged from 0.24 to 0.95. According to the industry distribution chart, PayPal Holdings ranks #170 out of 210 companies in the Credit Services industry, placing it in the top 81%.
Is PayPal Holdings' 5-Year Yield-on-Cost % too high?
PayPal Holdings' current 5-Year Yield-on-Cost % of 0.95 is 73% above median its 10-year median of 0.55. Over the past 10 years, this metric has ranged from a low of 0.24 to a high of 0.95. The Credit Services industry median 5-Year Yield-on-Cost % is 4.56. PayPal Holdings' value of 0.95 is 79.2% below this industry median. Based on the distribution chart, PayPal Holdings ranks #170 out of 210 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' 5-Year Yield-on-Cost % compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #170 out of 210 companies for 5-Year Yield-on-Cost %. This places PayPal Holdings in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.56. PayPal Holdings' value of 0.95 is 79.2% below this benchmark. Historically, PayPal Holdings' own 5-Year Yield-on-Cost % has ranged from 0.24 to 0.95 over the past decade. While the company's 10-year median is 0.55 vs. the industry median of 4.56, 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 5-Year Yield-on-Cost % for a Credit Services company?
The median 5-Year Yield-on-Cost % among Credit Services companies is 4.56, based on 210 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current 5-Year Yield-on-Cost % of 0.95 is 79.2% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median 5-Year Yield-on-Cost % is 4.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current 5-Year Yield-on-Cost % is 0.95, which is 73% above median its own 10-year median of 0.55. 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 €69.57, compared to a current price of €38.20 — trading 45.1% below its estimated fair value. The current 5-Year Yield-on-Cost % is 0.95, which is 73% above median its 10-year median of 0.55 and 79.2% below the Credit Services industry median of 4.56. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For PayPal Holdings (CHIX:2PPD), the current 5-Year Yield-on-Cost % is 0.95 as of Jul. 08, 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 45.1% below its estimated GF Value™ of €69.57.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for CHIX:2PPD:
5-Year Yield-on-Cost %: 0.95 (73% above median its 10-year median of 0.55)
GF Value™: €69.57 vs. price of €38.20 (45.1% below fair value)
Industry Position: 79.2% below the Credit Services median (#170 of 210)
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
Get the complete analysis for CHIX:2PPD
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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