Enterprise Value (EV)
Current Enterprise Value (EV)
PayPal Holdings Inc., current enterprise value calculation
| Current share price (P) | $65.91 |
| No. shares of common stock outstanding | 1,115,713,968 |
| US$ in millions | |
| Common equity (market value)1 | 73,537) |
| Add: Preferred stock, $0.0001 par value; unissued (per books) | —) |
| Add: Noncontrolling interest (per books) | —) |
| Total equity | 73,537) |
| Add: Short-term debt (per books) | —) |
| Add: Current portion of long-term debt (per books) | 418) |
| Add: Long-term debt, excluding current portion (per books) | 10,417) |
| Total equity and debt | 84,372) |
| Less: Cash and cash equivalents | 7,776) |
| Less: Short-term investments | 3,092) |
| Less: Funds receivable and customer accounts | 36,357) |
| Enterprise value (EV) | 37,147) |
Based on: 10-K (reporting date: 2022-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 65.91 × 1,115,713,968
Historical Enterprise Value (EV)
PayPal Holdings Inc., EV calculation
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).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of PayPal Holdings Inc. Annual Report.
3 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 80.80 × 1,131,373,298
The financial metrics exhibit a period of extreme volatility between 2018 and 2022, characterized by a rapid valuation peak in 2020 followed by a sustained and significant contraction through 2022.
- Enterprise Value (EV) Trajectory
- Enterprise value experienced an aggressive upward trend from 2018 to 2020, increasing from 79,413 million to a peak of 278,044 million. This growth was followed by a sharp reversal; by December 31, 2021, the EV fell to 108,217 million, and by the end of 2022, it reached a period low of 55,025 million, which is significantly below the 2018 starting valuation.
- Equity and Debt Analysis
- Total equity and debt followed a similar trajectory to the enterprise value, peaking at 324,545 million in 2020 before declining to 102,250 million in 2022. The narrow gap between total equity and total equity and debt indicates that debt levels remained relatively low in proportion to the company's overall capital structure across the five-year period.
- Market Value and EV Correlation
- Common equity market value showed a strong positive correlation with enterprise value, peaking at 315,562 million in 2020. A notable observation is that the enterprise value remained consistently lower than the common equity market value in every reported year. This divergence suggests a substantial net cash position, where the cash and cash equivalents held by the entity significantly offset its debt and market capitalization in the EV calculation.
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