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    PayPal’s Value is Stupefied…

    Paypals forward PE is 7, if you sell this stock your a fool at this price.

    Paypal is the same price at Verizon….

    Buy Paypal hand over fist….$SOFI trades at 5x the premium because they buy out finiacial YouTubers and know advertising

    Paypal undervalued by 70percent….70 from industry average

    the financials looks incredible in double digits.

    You have an incredible margin of safety

    It finally hit 56$ today and I bought heavy

    Even compared to Adobe it trades at Half the forward PE….

    This is value, this is a gem, this will be 75-90$ by year end because it’s grossly undervalued

    I’ve started a 15k position today

    PayPal’s Value is Stupefied…
    byu/Historical_Flow3890 instocks



    Posted by Historical_Flow3890

    View 33 Comments

    33 Comments

    5. thelastsubject123 on

      their most important metric, take rate, is declining every single quarter

      they have absolutely no operating leverage. when you think of strong compounders- they can unilaterally raise prices with strong visibility 5, 10 years out. paypal does not. a low PE does not mean a strong business

    6. Icarus-vs-sun on

      I used to use PayPal like 10 years ago. Everyone uses cash app now, so I don’t expect to use it again. It’s hard for me to invest in something I struggle to find use for in my own life.

    7. Inevitable_Pin7755 on

      I’ve seen this exact argument every few months since 2022 tbh. Low PE was never the problem. The market just doesn’t trust the growth story anymore. Checkout losing share, Apple Pay everywhere, Braintree margins, management overpromising. All of that matters more than how cheap it looks on paper.

      Could it work eventually yeah maybe. But saying 75 to 90 by year end is the same line people used last year and the year before. Cheap stocks can stay cheap way longer than people expect. Until PayPal shows real re acceleration it’s just value math not a catalyst.

      Also Verizon and Adobe comps feel kinda forced ngl. Different businesses, different growth profiles. That’s probably why the multiple is what it is.

      Anyway not hating, just saying this isn’t some obvious layup anymore. Market’s asking for proof now, not PE screenshots.

    8. Dstein99 on

      Damn those bags are getting heavy. The longer it stays cheap the more you can buy, this should be your best kept secret. You should hope that it stays low for the next couple years so you can continue to buy this no brainer investment. Bring on the sellers, it lets you buy more shares for cheaper.

    10. reidmrdotcom on

      I rarely use PayPal. And don’t really see any use for it either. The one use I did have for it, buyer protection when ordering from China, didn’t even pan out when I was sent a defective product. PayPal said they don’t do anything about that. What will set PayPal apart as something to use in the future? I don’t know.

    11. scuttohm on

      I removed it from my life workflow. Totally irrelevant these days. I hate the way there is no metadata passed through to my bank; it just says PAYPAL as charge. Annoying for business tax reason alone.

    15. Craigs1ist on

      I don’t completely disagree with you. However, are you taking into consideration that a lot of institutions including Goldman has either changed or is maintaining their Sell rating?

      Additionally the current PE 11.49 and Forward PE is 10.69 (source: ratios obtained from Charles Schwab)

      Apart from PE why do you think the stock climbs?

    17. Cav829 on

      Steve Eisman just called it a Value Trap last week. I couldn’t agree more. What is the actual thesis for a turn-around that isn’t “the stock looks cheap based on P/E?” The market doesn’t trade on P/E: it’s just a guidepost that will lag on a business in decline. That chart is creaming to run away as fast as you can. It’s run out of room to even stick around where it is unless it can break the 20-day, and it’s tried three times since December and failed.

      Heck, most of PYPL’s growth at this point is from Venmo. The reason it’s trading at the multiple it’s at is because it’s seen as more of a bank stock at this point. If it wants to get back to trading at a higher P/E, it needs something more exciting than stock buybacks: it needs to show the market it has something to offer the future. I’m not saying it can’t turn things around: I’m saying I don’t expect the Street to change its mind on it unless it proves why it can turn it around.

    18. NeedleArm on

      Check paypals marketshare. I used it around 10 years ago and now there are many other better payments systems around. It may still work well fo ebay and e-commerce. But the competition is fierce and they just dont have appeal in the younger generation anymore.

      Maybe if they sponsored streamers to use paypal and promote it, it could make a small comeback.

      However many countries are now building out their own payment structure. India has their QR one, america has venmo and cashapp, canada has etransfers, china has we chat and alipay.

      They are now a small subset of the market unfortunately.

    19. lolman1312 on

      Entire post became irrelevant as soon as you say SOFI trades at higher multiples because they “buy out financial YouTubers”. Retail investors do not impact a stock price as significantly as you think and it goes to show you do not understand why SOFI has come to where it is now.

      You fell for a value trap

    22. clown_baby10 on

      Good luck with that. Who uses PayPal? Are more people going to be using it in the future? Unlikely

    23. leontes on

      I’d rather not buy-in to companies that will eventually die. I’d rather be investing in the future, not those that scramble to be relevant in a world that they’re not.

    27. PleasantAnomaly on

      Where are you getting your numbers? I see Forward PE of 10.06 from Refinitiv in IBKR

    31. realHarryGelb on

      You forgot to mention the almost non-existent growth. Wall St just doesn’t like absence of growth

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