Stock Analysis on Net
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 FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

PayPal Holdings Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income 2,419 4,169 4,202 2,459 2,057
Net noncash charges 3,848 3,273 2,604 2,687 2,804
Changes in assets and liabilities (454) (1,102) (952) (585) 622
Net cash provided by operating activities 5,813 6,340 5,854 4,561 5,483
Purchases of property and equipment (706) (908) (866) (704) (823)
Proceeds from sales of property and equipment 5 5 120 17 3
Borrowings under financing arrangements 3,475 272 6,966 5,471 2,075
Repayments under financing arrangements (1,686) (361) (3,000) (2,516) (1,115)
Free cash flow to equity (FCFE) 6,901 5,348 9,074 6,829 5,623

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to PayPal Holdings Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. PayPal Holdings Inc. FCFE decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

Price to FCFE Ratio, Current

PayPal Holdings Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 1,115,713,968
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 6,901
FCFE per share 6.19
Current share price (P) 65.91
Valuation Ratio
P/FCFE 10.66
Benchmarks
P/FCFE, Competitors1
Accenture PLC 23.66
Adobe Inc. 34.47
Autodesk Inc. 53.90
Cadence Design Systems Inc. 71.97
CrowdStrike Holdings Inc. 90.34
International Business Machines Corp. 11.66
Intuit Inc. 43.01
Microsoft Corp. 41.63
Oracle Corp. 64.38
Palo Alto Networks Inc. 62.71
Salesforce Inc. 42.50
ServiceNow Inc. 78.93
Synopsys Inc. 56.55
P/FCFE, Sector
Software & Services 50.05
P/FCFE, Industry
Information Technology 50.93

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

PayPal Holdings Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 1,131,373,298 1,165,004,913 1,171,175,760 1,172,955,485 1,173,209,367
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 6,901 5,348 9,074 6,829 5,623
FCFE per share3 6.10 4.59 7.75 5.82 4.79
Share price1, 4 80.80 124.30 269.44 119.89 90.85
Valuation Ratio
P/FCFE5 13.25 27.08 34.78 20.59 18.96
Benchmarks
P/FCFE, Competitors6
Accenture PLC 17.91 25.76 19.01 19.50 —
Adobe Inc. 21.32 34.26 41.36 41.90 19.87
Autodesk Inc. 16.66 64.43 24.07 41.92 —
Cadence Design Systems Inc. 33.41 36.31 45.86 36.04 —
CrowdStrike Holdings Inc. 99.63 41.38 880.68 — —
International Business Machines Corp. 11.97 48.45 9.43 4.39 —
Intuit Inc. 13.86 86.74 17.36 34.61 —
Microsoft Corp. 36.73 42.54 42.74 30.77 —
Oracle Corp. — 8.36 6.27 22.31 —
Palo Alto Networks Inc. 29.54 32.91 8.11 46.20 —
Salesforce Inc. 16.56 49.52 50.40 29.09 —
ServiceNow Inc. 44.44 64.54 49.83 68.98 —
Synopsys Inc. 33.41 40.55 45.07 77.64 19.63
P/FCFE, Sector
Software & Services 30.44 33.85 25.89 22.16 —
P/FCFE, Industry
Information Technology 26.69 27.52 23.46 19.14 —

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 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,901,000,000 ÷ 1,131,373,298 = 6.10

4 Closing price as at the filing date of PayPal Holdings Inc. Annual Report.

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 80.80 ÷ 6.10 = 13.25

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. PayPal Holdings Inc. P/FCFE ratio decreased from 2020 to 2021 and from 2021 to 2022.