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Is this Large Market Cap Stock target price reasonable for PayPal Holdings, Inc. (NASDAQ:PYPL)?

The company in question is, PayPal Holdings, Inc. (NASDAQ:PYPL) currently with a stock price of 37.12 (-1.51% today). The market cap for PayPal Holdings, Inc. is 48989.46, and is in the sector Financial, and Credit Services industry. The target price for PayPal Holdings, Inc. is 43.94. Currently PayPal Holdings, Inc. is trading with a P/E of 34.58, and a forward P/E of 21.79. Average volume for PayPal Holdings, Inc. is 9411.79 and so far today it is 5332936.

Performance in the last year for PayPal Holdings, Inc. has been 3.57%. For EPS growth, PayPal Holdings, Inc. has seen a growth of 190.90%, and is looking to grow in the next year to 15.95%. More long term stats show that EPS growth has been 0.00% over the last five years and could be 17.36% for the next five years. PayPal Holdings, Inc. has seen sales growth quarter over quarter at 15.40%, with EPS growth quarter over quarter at 6.30%. The 20-day simple moving average is -1.29%, with the 200-day simple moving average coming to 0.81%.

Since the IPO date for PayPal Holdings, Inc. on the *TBA, PayPal Holdings, Inc. has seen performance year to date to be 4.12%. With PayPal Holdings, Inc. trading at 37.12, the dividend yield is *TBA, and the EPS is 1.09.

So could PayPal Holdings, Inc., be undervalued? Well as said before P/E is 34.58. The PEG is 1.99, P/S is 5.07 and the P/B is at 3.3. The P/cash is 9.88, with P/free cash flow at 22.44.

PayPal Holdings, Inc. ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 1.5. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, PayPal Holdings, Inc. has a gross margin of 49.10%, an operating margin of 15.70% and a profit margin of 14.00%.Payout ratio for PayPal Holdings, Inc. is 0.00%. Return on assets come to 4.60% with return on investment coming to 8.70%.

Insider ownership for PayPal Holdings, Inc., is at 6.80% and institutional ownership comes to 80.10%. Outstanding shares are at 1299.8. While shares float is 1127.75. The float short is currently 1.90%, and short ratio is 2.28.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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