PayPal Holdings Current Valuation vs. Operating Margin
| PYPL34 Stock | BRL 26.83 0.62 2.37% |
For PayPal Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PayPal Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PayPal Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PayPal Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PayPal Holdings over time as well as its relative position and ranking within its peers.
PayPal |
PayPal Holdings Operating Margin vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining PayPal Holdings's current stock value. Our valuation model uses many indicators to compare PayPal Holdings value to that of its competitors to determine the firm's financial worth. PayPal Holdings is rated below average in current valuation category among its peers. It is rated below average in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for PayPal Holdings is about 2,980,915,422,527 . Comparative valuation analysis is a catch-all model that can be used if you cannot value PayPal Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for PayPal Holdings' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.PayPal Current Valuation vs. Competition
PayPal Holdings is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Credit Services industry is at this time estimated at about 5.99 Trillion. PayPal Holdings holds roughly 437.6 Billion in current valuation claiming about 7% of stocks in Credit Services industry.
PayPal Operating Margin vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
PayPal Holdings |
| = | 437.6 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
PayPal Holdings |
| = | 0.15 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
PayPal Operating Margin Comparison
PayPal Holdings is rated below average in operating margin category among its peers.
PayPal Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in PayPal Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PayPal Holdings will eventually generate negative long term returns. The profitability progress is the general direction of PayPal Holdings' change in net profit over the period of time. It can combine multiple indicators of PayPal Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California. PAYPAL HOLD operates under Credit Services classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 30900 people.
PayPal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on PayPal Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PayPal Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PayPal Holdings' important profitability drivers and their relationship over time.
Use PayPal Holdings in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PayPal Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PayPal Holdings will appreciate offsetting losses from the drop in the long position's value.PayPal Holdings Pair Trading
PayPal Holdings Pair Trading Analysis
The ability to find closely correlated positions to PayPal Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PayPal Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PayPal Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PayPal Holdings to buy it.
The correlation of PayPal Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PayPal Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PayPal Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PayPal Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your PayPal Holdings position
In addition to having PayPal Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in PayPal Stock
When determining whether PayPal Holdings is a strong investment it is important to analyze PayPal Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PayPal Holdings' future performance. For an informed investment choice regarding PayPal Stock, refer to the following important reports:Check out Your Equity Center. For information on how to trade PayPal Stock refer to our How to Trade PayPal Stock guide.You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
To fully project PayPal Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PayPal Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PayPal Holdings' income statement, its balance sheet, and the statement of cash flows.