Should you buy PayPal stock? (August 2023)
- 8 months ago
PayPal stock analysis. PYPL.
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Paypal reported earnings last week and the stock collapsed 15%. Shares are down 80% since its all-time high which means the company has lost more than 270 billion dollars in value.
Right now, the company has a market cap of 70.8 billion dollars. Adjust for cash, investments and debt and the enterprise value is 67 billion.
Revenue over the last 12 months is 28.6 billion, net income is 4.1 billion and free cash flow is 3.6 billion.
So Paypal is currently valued at 2.3 times revenue, 17 times earnings and under 19 times free cash flow.
That looks cheap. In fact, Paypal hasn’t been this cheap since 2017. And in 2017 the business was producing significantly less:
For example, revenue in 2017 was only 13 billion versus 28 billion today.
And net income in 2017 was only 1.8 billion versus over 4 billion today.
So what’s going on? The key issue is that Paypal is experiencing slowing growth. Revenue growth has slowed from 20% in 2017 to just 8% over the last 12 months. And investors are concerned about a large number of competitive threats.
#paypalstock #stocks #investing #stockstobuy #overlookedalpha
Join 9000+ investors: https://www.overlookedalpha.com
Paypal reported earnings last week and the stock collapsed 15%. Shares are down 80% since its all-time high which means the company has lost more than 270 billion dollars in value.
Right now, the company has a market cap of 70.8 billion dollars. Adjust for cash, investments and debt and the enterprise value is 67 billion.
Revenue over the last 12 months is 28.6 billion, net income is 4.1 billion and free cash flow is 3.6 billion.
So Paypal is currently valued at 2.3 times revenue, 17 times earnings and under 19 times free cash flow.
That looks cheap. In fact, Paypal hasn’t been this cheap since 2017. And in 2017 the business was producing significantly less:
For example, revenue in 2017 was only 13 billion versus 28 billion today.
And net income in 2017 was only 1.8 billion versus over 4 billion today.
So what’s going on? The key issue is that Paypal is experiencing slowing growth. Revenue growth has slowed from 20% in 2017 to just 8% over the last 12 months. And investors are concerned about a large number of competitive threats.
#paypalstock #stocks #investing #stockstobuy #overlookedalpha