$PayPal(PYPL)$ IS EXTREMELY UNDERVALUED!
PRICE TARGET: $118
POTENTIAL UPSIDE: +74% ✅
"In my view, PayPal remains very undervalued, also supported by the aggressive buyback program. Margins are improving and revenue acceleration is expected in 2026"
ASSUMPTIONS:
LTM Revenue: $32.292B
5Y Revenue CAGR: 7%
2030 Profit Margin: 16%
2030 PE Ratio: 18
Shares outstanding: 0.977B
Shares reduction: 5%/year
VALUATION:
Q2 2030 $PYPL SHARE PRICE =
32.292 * (1.07)^5 * 0.16 * 18 /
[0.977 * (0.95)^5] = 173$
You can now choose the discount rate that you prefer, for PayPal I want to use a 10%
ACTUAL PRICE: $68
FAIR VALUE: $107
PRICE TARGET: $118
POTENTIAL UPSIDE: +66%
EXPECTED RETURNS: 20.5%/year
DIVIDEND YIELD: -
A stock chart for PayPal Holdings Inc, ticker NASDAQ: PYPL. The chart shows a five-year price trend with a peak around 300 and a decline to 67.68 USD, marked with a red downward arrow indicating a 63.86% drop over five years. Text overlays include the current price of 67.68 USD, a past five-year performance of -63.86%, and after-hours trading details at 67.64 USD.
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