PayPal Holdings Inc EV/EBITDA
Data as of August 04, 2026
EV/EBITDA
8.44
Enterprise Value
$54.03B
EBITDA (TTM)
$6.40B
Sector
Financial Services
How It's Calculated
8.44 = $54.03B ÷ $6.40B
What This Means
PayPal Holdings Inc's EV/EBITDA of 8.4 is on the lower side versus many large-cap peers — context still depends on growth and leverage.
About PayPal Holdings Inc
PayPal Holdings Inc (PYPL) operates in the Financial Services sector, specifically in Financial Services. With a market capitalization of about $48.94B, it ranks as a large-cap stock — a major established company.
Shares recently traded near $57.87, within a 52-week range of $38.46 to $79.22 (-26.9% from the high, +50.5% from the low). Beta of 1.30 suggests the stock has been more volatile than the broader market.
Trailing profit margin is about 14.4%, signaling a solid profit margin for its industry.
Understanding This Metric
EV/EBITDA is widely used when comparing companies with different debt loads because enterprise value includes net debt while EBITDA approximates operating cash earnings power. For PayPal Holdings Inc, the ratio should be read with growth, capex needs, and cycle position in Financial Services. Pair EV/EBITDA with free cash flow yield and net debt metrics before drawing conclusions — especially when EBITDA is depressed or boosted by one-time items.
Using This Number in Practice
Near 8.44x EV/EBITDA, PayPal Holdings Inc (PYPL) carries a mid-range EV/EBITDA multiple that investors often stack-rank within the sector. Enterprise value of about $54.03B and EBITDA near $6.40B form the ratio — adjust for one-time items before treating the headline multiple as comparable.
Credit and LBO workflows often sort names on EV/EBITDA before drilling into free cash flow and maintenance capex. Pair this view with the EV/EBITDA calculator and the PYPL metrics hub for related valuation pages.
Sector Comparison
Among Financial Services names on our S&P 100 coverage, PayPal Holdings Inc's EV/EBITDA of 8.44 can be compared with peers such as BRK-B (17.47), V (24.95), MA (25.34). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Financial Services stocks.
Key Takeaways
- PYPL is grouped in the Financial Services sector for peer comparisons.
- Recent beta of 1.30 suggests higher-than-market price sensitivity.
- Trailing profit margin of 14.4% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for PYPL.
Learn the full workflow
Compare PE with PB, PEG, EV/EBITDA, and market cap in one structured path.
Open the Stock Valuation hub →Other PYPL Metrics
Frequently Asked Questions
What is PYPL's EV/EBITDA?
EV/EBITDA compares enterprise value to operating earnings before interest, taxes, depreciation, and amortization. PayPal Holdings Inc's ratio is about 8.44 — common for comparing leveraged companies in Financial Services.
Is 8.44 high or low vs peers?
Among Financial Services peers (e.g. GS (62.73), MS (41.91), SCHW (32.24)), PYPL's 8.44 should be read with growth, capex, and debt levels.
When is EV/EBITDA misleading?
EBITDA ignores capex, working capital, and stock-based comp; negative or tiny EBITDA makes the ratio meaningless. Cross-check with free cash flow and net debt.
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