Strativest CapitalSTRATIVEST RESEARCH
Independent research · Est. October 2026
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Stock X-Ray · Financials · S&P 500 Full Coverage — Phase 1

PayPal (PYPL)

X-Ray dated Oct 28, 2026 · Share price as of Oct 28, 2026 intraday, when the valuation snapshot was captured · Financials from SEC filings (EDGAR) · Valuation multiples from a labelled secondary source
The verdict — valuation label: OVERVALUED

Forward P/E is 9.56x against a peer median of 7.48x, a ratio of 1.28x — above the fair range — with trailing P/E 10.63x and PEG 1.42. Latest-quarter revenue grew only 2.0% year over year (PRIMARY, EDGAR), well below the cluster median, so the premium is not paid for by delivered growth. Delivered demand check: the Payments & consumer finance group's median growth was 9.3% — demand rising across the group, while this company grows at 2.0%, so the above-median multiple rests on a recovery that has not yet been delivered.

9.6×
Forward P/E — price vs next year’s expected earnings (secondary source)
7.5×
Peer median forward P/E — closest comparable companies
10.6×
Trailing P/E — price vs the last twelve months of earnings
1.4×
Price / sales

What would change this label: Move to FAIRLY PRICED if the forward P/E compresses to about 8.60x or below (1.15x the peer median) at unchanged estimates, or if revenue growth rises to about 9.3% year over year or above (the cluster median) for two quarters. Move further from fair value if revenue growth falls below 0% year over year while the forward P/E stays above 8.60x.

In simple words

PayPal is a large, profitable online payments company, but its sales grew only about 2% in the latest quarter, slower than similar companies. Its shares still cost a bit more than those peers per dollar of expected profit. Paying a premium for slower growth makes the shares overvalued, though not by a huge margin.

Words we use, in plain English: P/E ratio — the share price divided by earnings per share; how many dollars you pay for one dollar of yearly profit. Forward P/E — the same, using next year’s expected earnings. Free cash flow — cash a company has left after running the business and buying equipment. TTM — the last twelve months. Drawdown — the worst fall from a peak to the low after it.
The share price vs the market — six years
PayPal (PYPL)S&P 500 (SPY)
4621201782362021202220232024202520262020-09-012026-10-27

Both lines start at 100 on 2020-09-01. Over the full window PayPal returned -73.15% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for PayPal: -87.3% (2021-07-23 to 2026-02-12). Source: Nasdaq official daily history.

What the label rests on

Forward P/E is 9.56x against a peer median of 7.48x, a ratio of 1.28x — above the fair range — with trailing P/E 10.63x and PEG 1.42. Latest-quarter revenue grew only 2.0% year over year (PRIMARY, EDGAR), well below the cluster median, so the premium is not paid for by delivered growth. Delivered demand check: the Payments & consumer finance group's median growth was 9.3% — demand rising across the group, while this company grows at 2.0%, so the above-median multiple rests on a recovery that has not yet been delivered. The company’s forward P/E is 9.6× against a peer median of 7.5×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Payments & consumer finance group's median latest-quarter revenue growth was 9.3% year over year (SEC filings) — demand rising. Latest-quarter sales growth was +2.0% versus a year earlier (SEC filings).

CompanyPrice (Oct 28, 2026)Forward P/ETrailing P/E
PayPal (PYPL)$55.919.6×10.6×
XYZ$75.1516.4×127.7×
CPAY$395.0013.5×24.1×
FISV$47.496.5×9.1×
SYF$74.997.5×7.9×
GPN$82.105.6×—
Peer median7.5×

Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.

Sales, profit and cash

Sales and profit each quarter
SalesNet income (profit)
$0B$3B$6B$10BSep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025Sep 2026

This company does not report a gross-profit line in its SEC facts (normal for banks, payment networks and some health insurers), so profit is shown as net income instead — gross margin is marked UNVERIFIED-absent rather than estimated.

Cash left over each quarter (free cash flow)
PositiveNegative
$-2B$0B$2BSep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025Sep 2026

Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.

QuarterSalesGross marginNet incomeEPS (GAAP, diluted)Free cash flow
Q/E Sep 2026
2026-09-30
$8.6B—$1.1B1.25$1.4B
Q/E Jun 2026
2026-06-30
$8.7B—$1.1B1.25$1.8B
Q/E Mar 2026
2026-03-31
$8.4B—$1.1B1.21$903M
Q/E Dec 2025
2025-12-31
$8.7B—$1.4B—$2.2B
Q/E Sep 2025
2025-09-30
$8.4B—$1.2B1.30$1.7B
Q/E Jun 2025
2025-06-30
$8.3B—$1.3B1.29$692M
Q/E Mar 2025
2025-03-31
$7.8B—$1.3B1.29$964M
Q/E Dec 2024
2024-12-31
$8.4B—$1.1B—$2.2B
Q/E Sep 2024
2024-09-30
$7.8B—$1.0B0.99$1.4B
Q/E Jun 2024
2024-06-30
$7.9B—$1.1B1.08$1.4B
Q/E Mar 2024
2024-03-31
$7.7B—$888M0.83$1.8B
Q/E Dec 2023
2023-12-31
$8.0B—$1.4B—$2.5B

The last twelve reported quarters. Full 25-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.

Earnings: getting better or worse?

Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.

Dec 2022
—
Mar 2023
0.70
Jun 2023
0.92
Sep 2023
0.93
Dec 2023
—
Mar 2024
0.83
Jun 2024
1.08
Sep 2024
0.99
Dec 2024
—
Mar 2025
1.29
Jun 2025
1.29
Sep 2025
1.30
Dec 2025
—
Mar 2026
1.21
Jun 2026
1.25
Sep 2026
1.25

Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.

Key facts

ItemValue
Company (legal name in filings)PayPal Holdings, Inc.
Chief executiveEnrique Lores (source: https://www.reuters.com/business/paypal-raises-2026-profit-forecast-turnaround-gains-traction-2026-10-27/)
SectorFinancials — Transaction & Payment Processing Services — runs online payment services that let people and businesses send money and pay online
Share price (Oct 28, 2026)$55.91
Market value (market cap)$46.6B — share price times shares outstanding of 830,658,298 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest))
Sales, last twelve months$34.3B
Net income, last twelve months$4.7B
Free cash flow, last twelve months$6.3B
Latest reported quarterQ/E Sep 2026 (of 25 quarters in the data pack)
Six-year price return vs S&P 500-73.15% vs +118.28%
Worst peak-to-trough fall-87.3% (2021-07-23 to 2026-02-12)

What we could not verify

  • Gross profit / gross margin: not tagged as a standalone line in this company's EDGAR company facts (common for banks, payment networks and some healthcare payers) — shown as UNVERIFIED-absent; the page charts revenue and net income instead.
  • TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
  • Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
  • Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.

The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.

Sources

  • SEC EDGAR submissions — Filing index; company legal name. https://data.sec.gov/submissions/CIK0001633917.json
  • SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares. https://data.sec.gov/api/xbrl/companyfacts/CIK0001633917.json
  • Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates. https://api.nasdaq.com/api/quote/PYPL/historical?assetclass=stocks
  • Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.

Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.

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