2024-01-30 07:08:20 ET
Summary
- The digital wallet sector is experiencing robust growth, driven by trends like contactless payments, BNPL services, and the rise of virtual cards.
- Despite challenges from competitors like Apple Pay, PayPal's wide platform reach and comprehensive financial services and brand trust gives them an advantage in the fight for market share.
- PayPal's stock price reflects expectations of less than 5% growth over the next decade, suggesting the market foresees a considerable loss in market share in the coming years - a pessimistic view.
- Using a DCF, we can conclude that the market undervalues PayPal, with an intrinsic value estimation of $86 per share.
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PayPal's Robust Market Position And Sector's Growth Trajectory Signal A Strong Investment Case