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PayPal Holdings (NEOE:PYPL) Shiller PE Ratio : 25.89 (As of May. 05, 2024)


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What is PayPal Holdings Shiller PE Ratio?

As of today (2024-05-05), PayPal Holdings's current share price is C$4.92. PayPal Holdings's E10 for the quarter that ended in Mar. 2024 was C$0.19. PayPal Holdings's Shiller PE Ratio for today is 25.89.

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

NEOE:PYPL' s Shiller PE Ratio Range Over the Past 10 Years
Min: 21.72   Med: 25.96   Max: 32.73
Current: 26.2

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.

NEOE:PYPL's Shiller PE Ratio is ranked worse than
68.67% of 300 companies
in the Credit Services industry
Industry Median: 14.84 vs NEOE:PYPL: 26.20

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 C$0.071. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is C$0.19 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
=4.92/0.19
=25.89

* 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)
=0.071/129.4194*129.4194
=0.071

Current CPI (Mar. 2024) = 129.4194.

PayPal Holdings Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 0.016 100.560 0.021
201409 0.014 100.428 0.018
201412 0.017 99.070 0.022
201503 0.017 99.621 0.022
201506 0.019 100.684 0.024
201509 0.021 100.392 0.027
201512 0.026 99.792 0.034
201603 0.025 100.470 0.032
201606 0.022 101.688 0.028
201609 0.022 101.861 0.028
201612 0.027 101.863 0.034
201703 0.027 102.862 0.034
201706 0.028 103.349 0.035
201709 0.024 104.136 0.030
201712 0.040 104.011 0.050
201803 0.034 105.290 0.042
201806 0.036 106.317 0.044
201809 0.030 106.507 0.036
201812 0.041 105.998 0.050
201903 0.047 107.251 0.057
201906 0.058 108.070 0.069
201909 0.033 108.329 0.039
201912 0.036 108.420 0.043
202003 0.006 108.902 0.007
202006 0.110 108.767 0.131
202009 0.072 109.815 0.085
202012 0.107 109.897 0.126
202103 0.073 111.754 0.085
202106 0.077 114.631 0.087
202109 0.073 115.734 0.082
202112 0.055 117.630 0.061
202203 0.034 121.301 0.036
202206 -0.023 125.017 -0.024
202209 0.097 125.227 0.100
202212 0.068 125.222 0.070
202303 0.060 127.348 0.061
202306 0.077 128.729 0.077
202309 0.079 129.860 0.079
202312 0.109 129.419 0.109
202403 0.071 129.419 0.071

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  (NEOE: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 (NEOE: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.