Is It Time To Reconsider PayPal (PYPL) After Its Steep Multi‑Year Share Price Decline

Simply Wall St.01-14

If you are wondering whether PayPal Holdings is now a potential value opportunity or a value trap, looking closely at what you are paying for each dollar of its fundamentals becomes essential. The ...

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The ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/diversified-financials/nasdaq-pypl/paypal-holdings/news/is-it-time-to-reconsider-paypal-pypl-after-its-steep-multiye\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Time To Reconsider PayPal (PYPL) After Its Steep Multi‑Year Share Price Decline</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Time To Reconsider PayPal (PYPL) After Its Steep Multi‑Year Share Price Decline\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-14 07:47 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/diversified-financials/nasdaq-pypl/paypal-holdings/news/is-it-time-to-reconsider-paypal-pypl-after-its-steep-multiye><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether PayPal Holdings is now a potential value opportunity or a value trap, looking closely at what you are paying for each dollar of its fundamentals becomes essential. The ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/diversified-financials/nasdaq-pypl/paypal-holdings/news/is-it-time-to-reconsider-paypal-pypl-after-its-steep-multiye\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BQXX3F31.USD","symbol_name":"GUINNESS GLOBAL INNOVATORS \"C\" (USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/diversified-financials/nasdaq-pypl/paypal-holdings/news/is-it-time-to-reconsider-paypal-pypl-after-its-steep-multiye","article_id":"2603663162","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/112732-main-header/1756253743940"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/diversified-financials/nasdaq-pypl/paypal-holdings/news/is-it-time-to-reconsider-paypal-pypl-after-its-steep-multiye","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2603663162","pubTimestamp":1768348070,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether PayPal Holdings is now a potential value opportunity or a value trap, looking closely at what you are paying for each dollar of its fundamentals becomes essential.\nThe shares last closed at US$56.56, with returns of a 5.4% decline over 7 days, an 8.3% decline over 30 days, a 2.7% decline year to date, and a 35.0% decline over 1 year, while the 5 year return sits at a 77.1% decline and the 3 year return at a 29.3% decline.\nRecent headlines around PayPal have...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BQXX3F31.USD":"GUINNESS GLOBAL INNOVATORS \"C\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4534":"瑞士信贷持仓","PYPL":"PayPal","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","LU2023251221.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (USD) INC","IE00BQXX3C00.GBP":"GUINNESS GLOBAL INNOVATORS \"C\" (GBP) ACC","BK4566":"资本集团","LU1861217088.USD":"贝莱德金融科技A2","LU1861220207.SGD":"Blackrock FinTech A2 SGD-H","IE00BQXX3D17.EUR":"GUINNESS GLOBAL INNOVATORS \"C\" (EUR) ACC","BK4535":"淡马锡持仓","BK4106":"数据处理与外包服务","BK4588":"碎股","LU2089283258.USD":"安联环球可持续基金Cl AM Dis","BK4227":"交易和支付处理服务","BK4598":"佩洛西持仓","BK4551":"寇图资本持仓","LU2360107671.USD":"BGF FINTECH \"A4\" (USD) INC","LU0106831901.USD":"贝莱德世界金融基金A2","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","BK4524":"宅经济概念","BK4554":"元宇宙及AR概念","BK4581":"高盛持仓","BK4527":"明星科技股","LU2089284900.SGD":"Allianz Global Sustainability Cl AM Dis H2-SGD","BK4585":"ETF&股票定投概念"},"translate_title":"PayPal（PYPL）股价多年大幅下跌后，是时候重新考虑它了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PYPL":1.98},"content_text":"If you are wondering whether PayPal Holdings is now a potential value opportunity or a value trap, looking closely at what you are paying for each dollar of its fundamentals becomes essential. The shares last closed at US$56.56, with returns of a 5.4% decline over 7 days, an 8.3% decline over 30 days, a 2.7% decline year to date, and a 35.0% decline over 1 year, while the 5 year return sits at a 77.1% decline and the 3 year return at a 29.3% decline. Recent headlines around PayPal have focused on its position in digital payments and how it is responding to competition and evolving consumer payment habits. These developments help frame whether the current share price reflects caution about future growth or an adjustment to a new normal for the business. On our 6 point valuation checklist, PayPal scores a 5. You can see the breakdown in our valuation score. We will unpack this using several common methods before finishing with a more comprehensive way to think about what the stock may be worth.  Find out why PayPal Holdings's -35.0% return over the last year is lagging behind its peers. AdvertisementApproach 1: PayPal Holdings Excess Returns Analysis The Excess Returns model looks at how much profit a company can generate above the return that shareholders could reasonably expect, given the risk they are taking. Instead of focusing on cash flows, it centres on earnings power versus the cost of equity and how that compounds on the company’s book value over time. For PayPal Holdings, the model uses a Book Value of US$21.46 per share and a Stable EPS estimate of US$6.42 per share, based on weighted future Return on Equity estimates from 10 analysts. The implied Average Return on Equity is 24.04%, while the Cost of Equity is US$2.09 per share. This gap creates an Excess Return of US$4.34 per share. The Stable Book Value used in the model is US$26.73 per share, sourced from weighted future Book Value estimates from 8 analysts. Putting this together, the Excess Returns model arrives at an intrinsic value of about US$122.26 per share. Compared with the recent share price of US$56.56, this suggests the stock may be trading at a substantial discount to the model’s intrinsic value estimate, with an indicated discount of around 53.7%. Result: UNDERVALUED Our Excess Returns analysis suggests PayPal Holdings is undervalued by 53.7%. Track this in your watchlist or portfolio, or discover 884 more undervalued stocks based on cash flows. PYPL Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for PayPal Holdings. Approach 2: PayPal Holdings Price vs Earnings For profitable companies like PayPal Holdings, the P/E ratio is a straightforward way to link what you pay for the stock to the earnings it generates per share. It gives you a quick sense of how many dollars investors are currently willing to pay for each dollar of earnings. What counts as a “normal” or “fair” P/E usually reflects two things: how fast earnings are expected to grow and how much risk investors see in those earnings. Higher expected growth or lower perceived risk can justify a higher P/E, while lower growth or higher risk tends to support a lower multiple. PayPal’s current P/E ratio is 10.76x. That compares with an average P/E of 14.73x for the Diversified Financial industry and a peer group average of 58.21x. Simply Wall St’s Fair Ratio for PayPal is 17.81x, which is a proprietary estimate of the P/E you might expect given factors such as its earnings growth profile, industry, profit margins, market capitalization and risk characteristics. Because it accounts for these company specific drivers, the Fair Ratio can be more informative than a simple comparison with industry or peer averages. On this basis, PayPal’s current P/E of 10.76x sits below the Fair Ratio of 17.81x. Result: UNDERVALUED NasdaqGS:PYPL P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1441 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your PayPal Holdings Narrative Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which let you attach your own story about PayPal Holdings to the numbers by combining your views on its future revenue, earnings and margins with a clear fair value estimate that you can compare to today’s share price. A Narrative on Simply Wall St is an easy, community-based tool where you set out your thesis, connect it to a forecast, and arrive at a fair value that updates automatically when fresh information such as earnings, news or guidance is added. This helps ensure your view does not sit still while the market moves. For PayPal, one investor on the Community page currently has a Narrative fair value of about US$189.96 per share, another sits closer to US$76.75, and others fall in between at US$105.25, US$111.57 and US$90.01. This shows how different assumptions about growth, profitability and risk can all be made explicit, then weighed against the live market price instead of staying as vague opinions. Do you think there's more to the story for PayPal Holdings? Head over to our Community to see what others are saying! NasdaqGS:PYPL 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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