Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL)

$22.49

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

Price to Operating Profit (P/OP)
since 2015

Microsoft Excel

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Calculation

PayPal Holdings Inc., P/OP, 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
The share price exhibited a general upward trend from 2016 through early 2021, increasing from $33.52 to a peak of $269.44. However, post-2021, the share price experienced a notable decline, falling to $124.30 in 2022 and further decreasing to $80.80 in 2023. This suggests an overall increase in market valuation until 2021, followed by a correction or downward adjustment in the subsequent two years.
Operating Profit Per Share (OPPS)
The operating profit per share showed consistent growth throughout the entire period, rising from $1.19 in 2016 to $3.39 in 2023. The increase was steady with only a slight dip in the final year, indicating improving operational profitability on a per-share basis over the eight years considered.
Price to Operating Profit Ratio (P/OP)
The P/OP ratio generally trended upwards from 28.05 in 2016 to a significant peak of 95.94 in 2021, reflecting a substantial expansion in investor valuation relative to operating profit. After this peak, the ratio decreased sharply to 33.98 in 2022 and further to 23.82 in 2023, indicating a revaluation of the stock price against operating profit, potentially signaling market adjustment or decreasing growth expectations.
Overall Analysis
While operating profit per share steadily increased, shareholder valuation as indicated by share price and P/OP ratio showed high volatility, peaking in 2021 before experiencing marked declines. The decoupling of share price valuation from operational profitability post-2021 suggests changing market sentiment or external factors influencing investor perception. The declining P/OP ratio post-2021 may imply improved valuation attractiveness relative to operating profits or a market correction after an extended period of high multiples.

Comparison to Competitors

PayPal Holdings Inc., P/OP, 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).