Is PayPal undervalued ?
At $62 per share its trading at 5 year lows, with 12x P/E its lowest multiple in history. double digit % EPS growth despite adverse environment, with revenue to pick up when e-commerce recovers and expands, and $5bn annual buyback. Most brokers predict 50% upside.
So basically multiple expansion + EPS growth + buybacks easily lead to street consensus of 50% upside in the next 6-12 months.
Am I missing something ? I’m not a fintech expert but this seems dirty cheap.
PayPal is not trading on P/E
Believe the same statement was applicable to EBITDA multiple and other metrics. Point being that valuation is near all time lows
what are they trading on then ? TPV ? As I said I’m not a fintech expert
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Think 3 reasons are 1) CEO hunt is still going and longer than expected, 2) margin compression and competitive tension from stuff like Apple Pay, and 3) e-commerce quality as these merchants are first to dip if economy underperforms. Agree that valuation is super attractive on a P/E basis . Don’t have any positions yet but considering
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