PayPal Holdings Inc PEG Ratio
Data as of August 04, 2026
PEG Ratio
1.79
PE Ratio (TTM)
9.98
EPS (TTM)
$5.30
Sector
Financial Services
How It's Calculated
1.79 = 9.98 ÷ Growth Rate
What This Means
PayPal Holdings Inc's PEG ratio of 1.79 is in the fairly valued range. The stock's PE ratio is roughly in line with its expected earnings growth rate.
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
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For PayPal Holdings Inc, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Financial Services names on our S&P 100 coverage, PayPal Holdings Inc's PEG ratio of 1.79 can be compared with peers such as V (1.97), MA (1.71), MS (1.47). 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
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Frequently Asked Questions
What is PYPL's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. PayPal Holdings Inc's PEG of 1.79 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (1.79) may mean the market prices in high growth — or that growth estimates lag reality.
What are limitations of PEG for PYPL?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Financial Services peers — not as a standalone verdict.
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