Is The Business Growing?

Paypal is continuing to grow its revenues YoY with a CAGR of 12.3%. Net Income is also increasing at a CAGR of 11.0%. Total Equity is lagging at 3.9%, which makes perfect sense for a software giant. FCF is also growing at a whopping 15% CAGR.

Despite this consistent growth and a healthy PE of 16.32 in a generally overvalued market. Paypal also ranks #155 in the heavily inflated S&P 500 (according to the Buffet indicator)

Operating income is healthy and growing consistently with no signs of slowing. Operating Margin is a whopping 18.12% with a 2.9% CAGR increase. EPS growing 14% CAGR, and Shares Outstanding are actually SHRINKING rather than being diluted via 15B of recent/planned buybacks.

Safe to say the business is growing as much as you could reasonably expect a business of this size to be, and this growth has resulted in a stronger moat, higher profitability, and a considerable increase in cashflow.

As of today, March 28, 2025, PayPal's forward P/E ratio is estimated to be around 13.77, based on current estimates for future earnings. 

Here's a breakdown of PayPal's forward P/E ratio:

• What it is: The forward P/E ratio compares a company's current stock price to its "predicted" earnings per share. 

• Current Estimate: The current forward P/E ratio for PayPal (PYPL) is estimated to be around 13.77. 

• Historical Context:

  • In 2023, the forward P/E ratio was 10.88. 

  • The trailing P/E ratio is 17.26. 

• Other Valuation Measures:

  • Market Cap: 68.12B 

  • Enterprise Value: 67.18B