Price to Book Value (P/BV)
since 2015
Calculation
PayPal Holdings Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total PayPal Stockholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 10, 2023 | 4.51 | = | 80.80 | ÷ | 17.92 | 17.92 | = | 20,274 | ÷ | 1,131,373,298 | |
| Feb 3, 2022 | 6.66 | = | 124.30 | ÷ | 18.65 | 18.65 | = | 21,727 | ÷ | 1,165,004,913 | |
| Feb 5, 2021 | 15.76 | = | 269.44 | ÷ | 17.09 | 17.09 | = | 20,019 | ÷ | 1,171,175,760 | |
| Feb 6, 2020 | 8.33 | = | 119.89 | ÷ | 14.40 | 14.40 | = | 16,885 | ÷ | 1,172,955,485 | |
| Feb 7, 2019 | 6.93 | = | 90.85 | ÷ | 13.11 | 13.11 | = | 15,386 | ÷ | 1,173,209,367 | |
| Feb 7, 2018 | 5.67 | = | 75.59 | ÷ | 13.33 | 13.33 | = | 15,994 | ÷ | 1,200,160,405 | |
| Feb 8, 2017 | 3.36 | = | 40.88 | ÷ | 12.18 | 12.18 | = | 14,712 | ÷ | 1,207,583,234 | |
| Feb 11, 2016 | 2.98 | = | 33.52 | ÷ | 11.25 | 11.25 | = | 13,759 | ÷ | 1,222,675,902 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of PayPal Holdings Inc. Annual Report.
- Share Price Trend
- The share price of the company demonstrated a generally increasing trend from 2016 through 2021, rising from $33.52 in February 2016 to a peak of $269.44 in February 2021. However, subsequent periods saw a significant decline, with the share price decreasing to $124.30 in February 2022 and further to $80.80 in February 2023.
- Book Value Per Share (BVPS) Trend
- The book value per share exhibited steady growth over the entire period under review. Starting at $11.25 in 2016, BVPS gradually increased each year, reaching $18.65 in February 2022 before slightly decreasing to $17.92 in February 2023. This indicates consistent growth in underlying accounting value per share despite some recent minor contraction.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio showed an upward trajectory from 2.98 in 2016 to a pronounced peak at 15.76 in February 2021, reflecting a significant market premium relative to book value at that time. Following this peak, the ratio declined sharply to 6.66 in 2022 and further to 4.51 in 2023, indicating a normalization of market valuation relative to book value after an extended period of elevated levels.
- Overall Analysis
- The financial data indicate a strong growth phase culminating in 2021, characterized by rising share prices and expanding market valuation multiples. Despite steady underlying book value growth, the market valuation became relatively high compared to book value during the peak period. Since 2021, the retraction in share price and P/BV ratio suggests a market correction or a recalibration of investor expectations, potentially driven by changing market conditions or corporate performance considerations.
Comparison to Competitors
PayPal Holdings Inc., P/BV, long-term trends, comparison to competitors
| PayPal Holdings Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 10, 2023 | 4.51 | 7.13 | 11.22 | 18.46 | 42.67 | — | 5.34 | 7.20 | 12.38 | — | 6.94 | 252.00 | 3.37 | 18.36 | 9.24 | 12.68 |
| Feb 3, 2022 | 6.66 | 11.06 | 15.94 | 13.68 | 48.91 | — | 5.90 | 15.71 | 15.16 | 41.57 | 10.48 | 71.88 | 4.73 | 30.36 | 10.50 | 18.38 |
| Feb 5, 2021 | 15.76 | 8.51 | 16.53 | 14.90 | 14.78 | 40.58 | 5.24 | 17.71 | 13.11 | 14.01 | 28.60 | 20.61 | 4.48 | 40.91 | 7.57 | 15.54 |
| Feb 6, 2020 | 8.33 | 8.15 | 16.03 | 9.51 | — | 33.14 | 6.04 | 20.00 | 10.30 | 8.59 | — | 12.91 | 7.66 | 31.48 | 5.16 | 21.26 |
| Feb 7, 2019 | 6.93 | 9.44 | 12.76 | 12.50 | — | 21.55 | 7.40 | 24.12 | 10.02 | 3.84 | — | 22.92 | 9.93 | 39.04 | 3.68 | 18.62 |
| Feb 7, 2018 | 5.67 | 10.08 | 11.50 | 11.49 | — | 10.81 | 8.20 | 26.72 | 7.69 | 3.90 | — | 17.37 | 7.78 | 48.15 | 3.99 | 14.93 |
| Feb 8, 2017 | 3.36 | 9.83 | 7.37 | 11.10 | — | 7.84 | 9.30 | 24.96 | 6.08 | 3.49 | — | 16.91 | 9.45 | 37.74 | 2.81 | 12.36 |
| Feb 11, 2016 | 2.98 | 11.33 | 6.35 | 4.61 | — | 6.20 | 8.92 | 10.00 | 4.66 | 3.66 | — | 32.11 | 10.57 | 15.42 | 2.20 | 13.98 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Sector (Software & Services)
PayPal Holdings Inc., P/BV, long-term trends, comparison to sector (software & services)
| PayPal Holdings Inc. | Software & Services | |
|---|---|---|
| Feb 10, 2023 | 4.51 | 10.73 |
| Feb 3, 2022 | 6.66 | 13.58 |
| Feb 5, 2021 | 15.76 | 11.64 |
| Feb 6, 2020 | 8.33 | 10.07 |
| Feb 7, 2019 | 6.93 | 8.77 |
| Feb 7, 2018 | 5.67 | 7.22 |
| Feb 8, 2017 | 3.36 | 6.29 |
| Feb 11, 2016 | 2.98 | 5.39 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Industry (Information Technology)
PayPal Holdings Inc., P/BV, long-term trends, comparison to industry (information technology)
| PayPal Holdings Inc. | Information Technology | |
|---|---|---|
| Feb 10, 2023 | 4.51 | 10.49 |
| Feb 3, 2022 | 6.66 | 12.53 |
| Feb 5, 2021 | 15.76 | 11.10 |
| Feb 6, 2020 | 8.33 | 8.52 |
| Feb 7, 2019 | 6.93 | 7.05 |
| Feb 7, 2018 | 5.67 | 5.49 |
| Feb 8, 2017 | 3.36 | 4.55 |
| Feb 11, 2016 | 2.98 | 4.33 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).