![]() ![]() We aim to bring you long-term focused analysis driven by fundamental data. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. Simply Wall St analyst Richard Bowman and Simply Wall St have no position in any of the companies mentioned. If you are no longer interested in PayPal Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential. ![]() Our full PayPal analysis includes the valuation and growth forecasts - the data is updated daily and any changes to analyst forecasts will be reflected soon after they are made. Future guidance will also be key when these results are released. To maintain investor confidence, the company really needs to match or beat these numbers. The next set of quarterly results will be announced on the 8th November, and analysts are expecting revenue of $6.2 billion and EPS of $1.08. ![]() This may become a problem if the company cannot maintain the current trajectory or if margins revert to per-2020 levels. But there is a limit to the valuation it can trade on, and investors now have a expanding list of rapidly growing, smaller fintech companies to choose from.ĭespite the 20% correction, the current valuation implies investors are still expecting significant outperformance. PayPal is arguably the world’s leading fintech company, and its future remains bright. This means that if growth doesn’t outpace the broader market, the stock might not be able to maintain such a high price multiple. PayPal’s P/E ratio implies that investors are still very optimistic about the company’s growth compared to the market. This is a lot higher than the equity market (18X) and the American IT Industry (35.1x). To get a sense of the current valuation in relative terms we can consider the price-to-earnings (or "P/E") ratio, which is 58x. This estimate is based on the average cash flow forecasts from 13 analysts - so it will change as these forecasts change. Our analysis of PayPal includes an estimate of its fair value which works out to $244 - just 1.6% below the current price. This is a significant correction for a stock that is up more than 500% over the last five years and it's worth considering the potential opportunity PayPal now offers. Yesterday it recovered some of those losses, but it remains 20% below the all-time high of $310. Last week the share price fell as much as 11% as a result of the rumor. The press release simply stated: ‘In response to market rumors regarding a potential acquisition of Pinterest by PayPal, PayPal stated that it is not pursuing an acquisition of Pinterest at this time.’ While this statement doesn’t rule out a deal in the future, it certainly means there will not be a deal any time soon. ( NASDAQ:PYPL ) responded to last week’s rumors of a potential acquisition of Pinterest with a one-line press release. This is compared to a previous threshold of $20,000 across 200 or more transactions.This article originally appeared on Simply Wall St News. The IRS wants Americans to report any business transactions worth at least $600 on third-party platforms like PayPal and Venmo, the latter of which is owned by PayPal, via a 1099-k tax form. PayPal currently has 432 million users, but Uncle Sam is targeting the platform. Shares have shaved off 61% of their value year-to-date as investors have run for the exits. At the current pace of honing costs and growing margins, PayPal’s earnings are set to rise 15% in 2023, with Schulman pointing to a “more elevated end-of-year EPS.”įintech stocks have been out of favour in 2022, and PayPal is among the companies to have taken the brunt of the punishment. Schulman attributes the improved guidance to better-than-expected cost controls. Schulman said PayPal is on track to deliver 9% revenue growth in the current quarter, as a result of which EPS should come in “slightly ahead” of the company's previous outlook. ![]() Meanwhile, Elon Musk is not thrilled with the direction in which the company he helped co-found is headed. PayPal CEO Dan Schulman gave investors something to cheer after presenting at a UBS TMT conference, sending shares higher though they have since retreated slightly. However, things could be looking up in 2023, at least for one payments platform. It's no secret 2022 has not been kind to fintech. ![]()
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