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PayPal Holdings (PayPal Holdings) Cyclically Adjusted PS Ratio : 3.79 (As of Apr. 27, 2024)


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What is PayPal Holdings Cyclically Adjusted PS Ratio?

As of today (2024-04-27), PayPal Holdings's current share price is $65.96. PayPal Holdings's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was $17.41. PayPal Holdings's Cyclically Adjusted PS Ratio for today is 3.79.

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

PYPL' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 2.94   Med: 3.58   Max: 4.42
Current: 3.68

During the past years, PayPal Holdings's highest Cyclically Adjusted PS Ratio was 4.42. The lowest was 2.94. And the median was 3.58.

PYPL's Cyclically Adjusted PS Ratio is ranked worse than
56.13% of 367 companies
in the Credit Services industry
Industry Median: 2.87 vs PYPL: 3.68

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

PayPal Holdings's adjusted revenue per share data for the three months ended in Dec. 2023 was $7.411. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $17.41 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


PayPal Holdings Cyclically Adjusted PS Ratio Historical Data

The historical data trend for PayPal Holdings's Cyclically Adjusted PS 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 Cyclically Adjusted PS Ratio Chart

PayPal Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 3.53

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 PS 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 - - 3.98 3.41 3.53

Competitive Comparison of PayPal Holdings's Cyclically Adjusted PS Ratio

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

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

* The bar in red indicates where PayPal Holdings's Cyclically Adjusted PS Ratio falls into.



PayPal Holdings Cyclically Adjusted PS Ratio Calculation

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

PayPal Holdings's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=65.96/17.41
=3.79

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

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

Adj_RevenuePerShare=Revenue per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=7.411/129.4194*129.4194
=7.411

Current CPI (Dec. 2023) = 129.4194.

PayPal Holdings Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 1.577 99.695 2.047
201406 1.669 100.560 2.148
201409 1.662 100.428 2.142
201412 1.846 99.070 2.412
201503 1.752 99.621 2.276
201506 1.883 100.684 2.420
201509 1.840 100.392 2.372
201512 2.070 99.792 2.685
201603 2.077 100.470 2.675
201606 2.181 101.688 2.776
201609 2.197 101.861 2.791
201612 2.447 101.863 3.109
201703 2.447 102.862 3.079
201706 2.581 103.349 3.232
201709 2.648 104.136 3.291
201712 3.044 104.011 3.788
201803 3.028 105.290 3.722
201806 3.209 106.317 3.906
201809 3.072 106.507 3.733
201812 3.539 105.998 4.321
201903 3.475 107.251 4.193
201906 3.627 108.070 4.344
201909 3.685 108.329 4.402
201912 4.176 108.420 4.985
202003 3.897 108.902 4.631
202006 4.443 108.767 5.287
202009 4.587 109.815 5.406
202012 5.139 109.897 6.052
202103 5.070 111.754 5.871
202106 5.260 114.631 5.939
202109 5.208 115.734 5.824
202112 5.848 117.630 6.434
202203 5.532 121.301 5.902
202206 5.877 125.017 6.084
202209 5.917 125.227 6.115
202212 6.459 125.222 6.676
202303 6.208 127.348 6.309
202306 6.541 128.729 6.576
202309 6.756 129.860 6.733
202312 7.411 129.419 7.411

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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 PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


PayPal Holdings Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Cyclically Adjusted PS Ratio 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