NASDAQ:PYPL appears to be flying under the radar despite its strong fundamentals.

Uncover the hidden value in PAYPAL HOLDINGS INC (NASDAQ:PYPL) as our stock screening tool recommends it as an undervalued choice. NASDAQ:PYPL maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Exploring NASDAQ:PYPL's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:PYPL boasts a 7 out of 10:

• The Price/Earnings ratio is 11.38, which indicates a very decent valuation of PYPL.
• Compared to the rest of the industry, the Price/Earnings ratio of PYPL indicates a somewhat cheap valuation: PYPL is cheaper than 63.37% of the companies listed in the same industry.
• PYPL is valuated cheaply when we compare the Price/Earnings ratio to 24.39, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio of 9.69, the valuation of PYPL can be described as reasonable.
• 62.38% of the companies in the same industry are more expensive than PYPL, based on the Price/Forward Earnings ratio.
• PYPL is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.49, which is the current average of the S&P500 Index.
• 75.25% of the companies in the same industry are more expensive than PYPL, based on the Enterprise Value to EBITDA ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PYPL has a very decent profitability rating, which may justify a higher PE ratio.
• PYPL's earnings are expected to grow with 15.92% in the coming years. This may justify a more expensive valuation.

What does the Profitability looks like for NASDAQ:PYPL

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PYPL scores a 7 out of 10:

• PYPL has a better Return On Assets (4.93%) than 80.20% of its industry peers.
• The Return On Equity of PYPL (19.07%) is better than 84.16% of its industry peers.
• The Return On Invested Capital of PYPL (10.45%) is better than 88.12% of its industry peers.
• The last Return On Invested Capital (10.45%) for PYPL is above the 3 year average (8.61%), which is a sign of increasing profitability.
• PYPL has a better Profit Margin (12.93%) than 66.34% of its industry peers.
• PYPL has a Operating Margin of 16.47%. This is in the better half of the industry: PYPL outperforms 60.40% of its industry peers.
• With a decent Gross Margin value of 40.20%, PYPL is doing good in the industry, outperforming 65.35% of the companies in the same industry.

How We Gauge Health for NASDAQ:PYPL

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PYPL has achieved a 5 out of 10:

• The Altman-Z score of PYPL (1.84) is better than 74.26% of its industry peers.
• PYPL has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as PYPL would need 3.87 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 3.87, PYPL is doing good in the industry, outperforming 72.28% of the companies in the same industry.
• PYPL has a better Quick ratio (1.30) than 60.40% of its industry peers.

Unpacking NASDAQ:PYPL's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:PYPL scores a 6 out of 10:

• The Earnings Per Share has grown by an impressive 21.75% over the past year.
• PYPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.68% yearly.
• Measured over the past years, PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 16.01% on average per year.
• The Earnings Per Share is expected to grow by 16.29% on average over the next years. This is quite good.
• Based on estimates for the next years, PYPL will show a quite strong growth in Revenue. The Revenue will grow by 10.39% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of PYPL

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.