PayPal: The Buyback Mirage
2026-03-16 06:11:17 ET
Being Cheap Is Not Going To Cut It
PayPal Holdings, Inc. (PYPL) is one of the most debated value stocks in the market right now, and the debate is not hard to understand. PayPal trades at roughly $45 at the time of writing, which is about 85% below its 2021 peak. It generates $6B+ in annual free cash flow and is buying back ~13% of its own float every year. A five-year DCF puts fair value at $101 in the base case, with a plausible range of $86 to $123. And yet the stock sits at ~8x forward non-GAAP EPS, priced like a business in managed decline rather than one processing nearly $1.8T in annual payment volume. Something, clearly, has gone wrong....
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PayPal: The Buyback Mirage
NASDAQ: PYPL
PYPL Trading
-0.28% G/L:
$49.18 Last:
2,791,403 Volume:
$48.39 Open:
