Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL)

This company has been moved to the archive! The financial data has not been updated since May 9, 2023.

Price to Book Value (P/BV) 
since 2015

Microsoft Excel

Calculation

PayPal Holdings Inc., P/BV, long-term trends, calculation

Microsoft Excel

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

Microsoft Excel

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)

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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)

Microsoft Excel

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).