PayPal Holdings, Inc. (PYPL)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, PayPal traded at $56.17, about 10.62 times earnings and 2.44 times book, per FairStock calculations. That is not an expensive quote for a two-sided payments network with 23,800 employees and $6.6 billion of trailing free cash flow, a 13.3% FCF yield. The Graham Number is $52.31, so the price sits about 7.38% above that conservative benchmark—a negative margin of safety, but not a wild premium. Return on equity is 24.5%, debt-to-equity is 0.72, and the Piotroski F-Score is 6/9. Those are decent signs. Yet return on capital employed is only 4.62%, and the Altman Z-Score of 1.42 suggests I should demand a wider discount for financial risk. Growth is the real question. FairStock classifies PayPal as a SLOW GROWER, with profit growth of 4.5% a year over five years and revenue growth of 9.1%. The filed numbers show why: revenue has moved from $29.8B in fiscal year 2023, the year ended 2023-12-31, to $31.8B in fiscal year 2024, the year ended 2024-12-31, and $33.2B in fiscal year 2025, the year ended 2025-12-31. Net income went from $4.2B to $4.1B to $5.2B, and diluted EPS from $3.84 to $3.99 to $5.41. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $8.4B, net income was $1.1B, and diluted EPS was $1.21; in fiscal Q1 2025, the quarter ended 2025-03-31, revenue was $7.8B, net income was $1.3B, and diluted EPS was $1.29. The network and cash flow give it staying power, but slow growth and uneven profits keep it in the bargain bin rather than the compounder aisle.

In plain English: PayPal runs a digital payments network that helps people and businesses send and receive money online and in person. The business still produces a lot of cash, but revenue is growing slowly and profits have slipped recently. At the recent price, the shares look inexpensive compared with the company's profits and cash generation, though the weak growth makes it less obviously a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer