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PayPal Holdings (PayPal Holdings) Cyclically Adjusted Price-to-FCF : 18.90 (As of Apr. 28, 2024)


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What is PayPal Holdings Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), PayPal Holdings's current share price is $65.96. PayPal Holdings's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $3.49. PayPal Holdings's Cyclically Adjusted Price-to-FCF for today is 18.90.

The historical rank and industry rank for PayPal Holdings's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

PYPL' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 15   Med: 17.92   Max: 22.35
Current: 18.36

During the past years, PayPal Holdings's highest Cyclically Adjusted Price-to-FCF was 22.35. The lowest was 15.00. And the median was 17.92.

PYPL's Cyclically Adjusted Price-to-FCF is ranked worse than
71.57% of 102 companies
in the Credit Services industry
Industry Median: 10.035 vs PYPL: 18.36

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

PayPal Holdings's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $2.280. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $3.49 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


PayPal Holdings Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for PayPal Holdings's Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Chart

PayPal Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 17.59

PayPal Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF 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 - - 20.15 17.41 17.59

Competitive Comparison of PayPal Holdings's Cyclically Adjusted Price-to-FCF

For the Credit Services subindustry, PayPal Holdings's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, PayPal Holdings's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Cyclically Adjusted Price-to-FCF falls into.



PayPal Holdings Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

PayPal Holdings's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=65.96/3.49
=18.90

* 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 Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, PayPal Holdings's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=2.28/129.4194*129.4194
=2.280

Current CPI (Dec. 2023) = 129.4194.

PayPal Holdings Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.274 99.695 0.356
201406 0.391 100.560 0.503
201409 0.363 100.428 0.468
201412 0.428 99.070 0.559
201503 0.287 99.621 0.373
201506 0.320 100.684 0.411
201509 0.423 100.392 0.545
201512 0.457 99.792 0.593
201603 0.494 100.470 0.636
201606 0.407 101.688 0.518
201609 0.509 101.861 0.647
201612 0.633 101.863 0.804
201703 0.496 102.862 0.624
201706 0.615 103.349 0.770
201709 0.688 104.136 0.855
201712 -0.266 104.011 -0.331
201803 -0.433 105.290 -0.532
201806 -0.141 106.317 -0.172
201809 3.709 106.507 4.507
201812 0.760 105.998 0.928
201903 0.681 107.251 0.822
201906 0.872 108.070 1.044
201909 0.777 108.329 0.928
201912 0.505 108.420 0.603
202003 1.025 108.902 1.218
202006 1.334 108.767 1.587
202009 0.902 109.815 1.063
202012 1.249 109.897 1.471
202103 1.292 111.754 1.496
202106 0.893 114.631 1.008
202109 1.083 115.734 1.211
202112 0.851 117.630 0.936
202203 0.875 121.301 0.934
202206 0.928 125.017 0.961
202209 1.360 125.227 1.406
202212 1.254 125.222 1.296
202303 0.882 127.348 0.896
202306 -0.314 128.729 -0.316
202309 1.003 129.860 1.000
202312 2.280 129.419 2.280

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

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  (NAS:PYPL) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


PayPal Holdings Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


PayPal Holdings (PayPal Holdings) 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.
Executives
Peggy Alford officer: EVP, Global Sales 435 TASSO STREET, PALO ALTO CA 94301
Jonathan Auerbach officer: SVP, Strategy & Growth Off. C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
James Alexander Chriss director, officer: President and CEO C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Gabrielle Scheibe officer: See Remarks 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Daniel H Schulman director, officer: President and Chief Executive C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
John C. Kim officer: EVP, Chief Product Officer C/O OWLET, INC., 2500 EXECUTIVE PARKWAY, SUITE 500, LEHI UT 84043
Blake J Jorgensen officer: EVP, Chief Financial Officer 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Mark Britto officer: EVP, Global Sales and Credit C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Enrique Lores director 3000 HANOVER STREET, PALO ALTO CA 94304
Frank D Yeary director C/O INTEL CORPORATION, 2200 MISSION COLLEGE BLVD., RN4-151, SANTA CLARA CA 95054
David W Dorman director CVS HEALTH., ONE CVS DRIVE, WOONSOCKET RI 02895
Jeffrey William Karbowski officer: VP, Chief Accounting Officer 121 ALBRIGHT WAY, LOS GATOS CA 95032
John J Donahoe director C/O PAYPAL HOLDINGS INC, 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Adele Louise Pentland officer: SVP, Gen. Counsel & Secretary C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
John D Rainey officer: CFO and EVP, Global Cust Oper C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131